GOLD is the money of the KINGS, SILVER is the money of the GENTLEMEN, BARTER is the money of the PEASANTS, but DEBT is the money of the SLAVES!!!

Tuesday, July 19, 2011

Hyper-Inflation To Push Gold To Double before year End

The fever of gold continues as investors pour into Gold and Silver in order to escape the European and America debt abysses .Even today, the precious metal rises above the threshold of $ 1660 per ounce. It is considered a "safe heaven" of wealth against the odds of the the U.S. and Europe the public debt crisis. By the end of the year gold price could go up as high as 3 thousand dollars. The problem is that the financial system, is incapable of producing real wealth but just debt through credit



Today the gold price is growing, as it is used to do for now almost 11 years. Yesterday it rose above a threshold of $ 1600 per ounce . Analysts say that this "fever" becomes more frantic when investors try to find some "haven" protection of wealth, before the abyss of the European American debt .

European governments, under pressure from the International Monetary Fund, will meet again in Brussels this week to re-think back about the Greek debt, Barack Obama juggles with the failure to find an agreement about raising the public debt ceiling in the U.S., while ratings agencies are threatening to downgrade the United States's rating.

This year the price of gold has increased by 13%, the biggest jump for 90 years. According to analysts, it is possible that if the debt crisis increases, the price of the precious metal will reach $ 1650 by the end of 2011 and will double in a few years. Considering that China and India are among those that most require it , the gold price could reach up to 5 thousand dollars an ounce by 2020.

The economist Bob Chapman said that "we will see a doubling of the price of gold, around 3 thousand dollars an ounce already this fall". Some time ago I calculated that if you take the entire global monetary liquidity expressed in the main reserve currency, the dollar, and you divide by the amount of physical gold available,This would lead to absurd figures, in the order of about 30 - 60 000 U.S. dollars per ounce. The real problem, is that "there is so much paper around, a lot of finance, and a few products of real value .Gold even at $1600 is still very under-priced said James Turk yesterday , there is definably a shortage in the physical gold and silver and the prices have only one way to go and that is up up and up with few corrections along the way...



Related ETFs : Ishares Silver ETF (SLV), SPDR GOld ETF (GLD) SPDR GOld ETF (GLD), Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG)

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