Gold To Hit $2,700 In A Year, $7,400 In 5 Years

As I've said many times, $2,700 or $3,000/oz gold would be horrible for the economy. I think most cognitively astute consumers would understand this. Just look at what the cost of living is doing right now, and gold hasn't even hit $2,000 yet.

$7,000/oz gold would prove to be catastrophic to the economy. Wheelbarrows of cash for that loaf of bread wouldn't be large enough. Maybe a pickup truck or dump truck with cash would be better suited.

Be careful what y'all wish for. Venezuela isn't that far off

 

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YEAH I agree Master, gas at 3.39 here went up overnight.. I think I switch to buying ounces of gas. It's getting into my fishing drives now. Can't even drive to my favorite creek to get bait..

 

I would not hold my breath!
Semper Fi

 

You may be right. Looks like Russia is going with a gold backed Ruble to avoid the fiancial blowback from the world. Looks like they vote on it today.
There goes the Greenback and the Euro. Metals will soar, but war in now inevitable if they do.
USA cannot allow a gold backed Ruble. It will destroy the Dollar.

 

Gold could hit those levels without there being any negative economic effects. In fact, you can make the case that the negatives have hit -- inflation -- yet gold hasn't really moved.

I think when oil was $40/bbl. and someone said it'd go to $110/bbl. -- that would be negative for the economy, right ?

You're assuming that gold is rising in response to 1970's-style economic problems. Gold could just rise because 1 or 2 central banks decide to add a few hundred tons. Or a rising middle class in India and China decide they no longer trust digital currencies.

 

Don't cross your chickens before your bridges are hatched...the economy can flip just as fast as it flopped.

 

It can be gold-pressed latinum from STAR TREK and nobody is going to touch the ruble.

Regardless of what "backs" the ruble, it is no threat to the dollar. A global reserve currency that has the largest, most-liquid financial markets has no fear of the ruble.

In fact, Russia was the leader -- along with Iran -- of the "Don't Use the Dollar" faction globally. Look where it got them.

Let me be clear: if you do NOT have the rule of law....private property rights....large LIQUID financial markets.....then your currency is worth NOTHING !!

I managed money for some of the wealthiest people in the country. They're not putting their $$$ into financial roach motels where they can put money in but can't get money out.

Go ask the Russian oligarchs how the ruble or their crypto assets are now. Even if they still have them, they can't use them any more than the Russian Central Bank can use their $700 billion in reserves.

 

I agree with what

I agree with everything you stated. But the US 30 trillion debt is backed by nothing except the petro dollar/World reserve currency status. This status has seriously been eroding over the years. With oil trades taking place more and more frequently with currencies other than the Greenback. Which is exactly why the US invaded Iraq and Libya.

 

So, they've got the gun to the head of their populace, and they're voting on whether to pull the trigger?

 

$7000 per ounce, driven entirely by the dollar's devaluation, would mean the dollar is worth a bit more than a quarter of its present value.

I spend maybe $200 a week on groceries for my family. I wouldn't need a wheelbarrow to carry $800.

I'm not saying we're immune to hyperinflation, but I am saying I don't see a wholesale global shift away from the dollar, which is one prerequisite for dollar hyperinflation. At least that's the way I understand it; I'm open to correction.

 

The U.S. did not "invade" those countries. And we didn't exactly stay and take oil fields.

Oil trades can take place in any currency but EVENTUALLY someone is going to want to hold dollars. You can see that the dollar's share of trades has remained pretty stable in recent years.

https://www.federalreserve.gov/econ...rnational-role-of-the-u-s-dollar-20211006.htm

The dollar is ultimately backed by our large liquid financial markets...rule of law....private property rights.....etc. This is the ULTIMATE BACKING of a currency, not a precious metal or SDRs or oil or any other nonsense.

Putin's Russia had $700 billion in reserves and an 18% Debt/GDP ratio, the best in the world. His Ruble is now down 99% in 2 weeks -- how's that working out for Ruble holders ?

What you don't understand -- or more precisely, what the people you read don't understand -- is that there are only 2 fixed income markets that can handle billions of dollars in flows daily: the U.S. Treasury bond market and the U.S. mortgage backed-securities (MBS) market. THAT'S IT !!

If you have $10 billion -- oligarch, Central Bank, SWF -- do you think you can move that money into an asset class that trades $1 billion a day ? It'll take you weeks or months.

It took 30 years for Greece's Socialists to trash their currency and economy. They are a 3rd rate economy, mostly tourism. If it took them decades to fall apart, do you really think you will se the U.S. economy or the dollar collapse in your lifetime ?

An asteroid hit on Earth is more likely.

 

Rising gold prices do NOT equate to a falling or collapsing dollar.

 

You remember back in the late 70,s
and early 80,s you bought gas by the
liter !

 

that was beer Mpcusa

 

gas, beer and Diet Coke…LOL

 

An Halle Berry is going to take me snorkeling and by snorkeling I mean...

 

John Roque, a veteran technical analyst, says that the move in gold is just beginning, so you're not late-to-the-party.

40 week moving average -- something they watch -- is JUST now turning up. Other momentum indicators turning higher, too.

 

Brother can you spare a dime?

 

Gold has an up $100 day coming, maybe even $200.

 

That's a lot of colors in that pan.