Posted on 12/29/2012 7:20:15 AM PST by blam
MICHAEL PENTO: It Would Be More Surprising If Gold Didn't Go To $10,000
Sam Ro
Dec. 29, 2012, 7:12 AM
Michael Pento
The world's central banks have gold bulls on high alert thanks to unprecedented, ultra-easy monetary policy.
Eric King of King World News asked Michael Pento if this means gold $10,000 is coming.
Here's Pento's response:
“Absolutely. I know it sounds ridiculous, but don’t forget that back in the 1930s it was (around) $21 an ounce. No one would ever have believed that 80 years later we would have gold trading anywhere near $1,900 an ounce, but that’s what happened.
If you look at the rate of destruction of the purchasing power of all of the developed world’s currencies, it’s a slam dunk that gold is going much, much higher than its inflation-adjusted high of around $3,200 an ounce.
People are realizing this is an unprecedented scenario where all of these countries have been put on the life support of the their central banks to perpetuate the illusion of solvency. And when you get to that condition, there really is no limit to how high gold can go.
It wouldn’t surprise me if gold eventually goes to $10,000 an ounce or even higher because there is no limit to the productive capacity of central bankers to produce currency. I think it would be more surprising if gold didn’t go to $10,000 an ounce. When the US dollar loses its world reserve currency status and the US bond market collapse is in full swing, a $10,000 gold price may prove to be very conservative.”
Pento also believes tensions between Iran and Israel will escalate in 2013 sending oil to $170.
Read more at KingWorldNews.com.
(Excerpt) Read more at businessinsider.com ...
http://www.youtube.com/watch?v=7dFVFJ0iRRA
From the link above...
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Why not $100,000 ? Utterly ridiculous.
Gold is not increasing in value. Today, like 250 years ago, one ounce of gold would buy 3000 loaves of bread.
Correct that, 1000 loaves.
I don’t get your figuring. At today’s price of around $1650 an ounce, you’re saying that bread is going for around 55 cents a loaf. Where do you buy this bread?
Correction noted.
Sure, why not. Real gold bugs think long term. The reason it is going to $10k is that the inflation adjusted price of 3-4k will be grossly overshot. But that assumes the dollar will not lose value relative to the rest of the world and commodities in general. That is not likely, in the long run the dollar will have to lose 2:1 or 3:1 to reduce our debt to manageable levels. But 10:1 is not out of the question if we rack up the same amount of debt for the next decade or two.
Attention: Uncle Sam has left the building!
Attention: Uncle Sam has left the building!
Attention: Uncle Sam has left the building!
"I know it sounds ridiculous, but don’t forget that back in the 1930s it was (around) $21 an ounce. No one would ever have believed that 80 years later we would have gold trading anywhere near $1,900 an ounce.. it's a slam dunk that gold is going much, much higher than its inflation-adjusted high of around $3,200 an ounce... When the US dollar loses its world reserve currency status and the US bond market collapse is in full swing, a $10,000 gold price may prove to be very conservative." Pento also believes tensions between Iran and Israel will escalate in 2013 sending oil to $170.IOW, if the US$ doesn't lose its world reserve currency status -- and BTW, it isn't going to -- $10K an oz won't prove to be very conservative. The entire gold supply every mined (all of it is still on Earth except for a pretty tiny amount of gold used in components shot into space) in history would make about an 80 ft cube. More than half the gold ever mined has been mined since 1960. In November of last year, a fellow FReeper pointed out that the value of all the gold worldwide was $9.12T, when the market (bubble) price was higher.
Not if you are buying gold and silver as barter for when the fiat currency is worthless.
“Absolutely. I know it sounds ridiculous, but don’t forget that back in the 1930s it was (around) $21 an ounce. No one would ever have believed that 80 years later we would have gold trading anywhere near $1,900 an ounce, but that’s what happened. “
I really really wish that those who start talking dollars would talk in terms of a constant dollar. Twentynine 1930 dollars vs 1900 2012 dollars?
Constant dollars are tricky over many years. Search engines yield many attempts.
An ounce of gold historically bought a very good men’s suit, or somewhat less than a monthly wage for a low-level employee.
Looks like those prices are still comparable.
More likely it will suddenly dip along with other metals - then it’s SHTF time.
Figure in inflation since 1932, and $1800/oz is not unreasonable in terms of what you can actually buy. $10,000/oz would mean paper money would be totally worthless, not just devalued.
Refuse to read bs like this! I’m sick of all the conservative talk shows pushing gold. There is no way in hell you can convince me that the prices aren’t rigged to benefit the super elite. They build up the price then they dump it till it reaches bottom then they start all over again. It is a ponzi scheme.
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