Saturday, May 14, 2011

Forecast: Silver $450, Gold $11,500

Robin Griffiths of Cazenove, an old-line British stock brokerage firm (that reportedly handles the Queens account), says:

I think getting to $50 was a slam dunk certainty, you test the old all-time high. We now have a consolidation for let’s call it two months and I think then we are going to go on up because the paper monies are still being printed..I’ve got it (silver) as a ten bagger from current levels. You don’t want to be wobbled out here because of a few champagne bubbles. You want to be able to stay with and add to your long-term holdings. Bulls (bull markets) are very successful at wobbling people out at the wrong time...The run-up to the peak in markets like gold is between now and 2015. I think it will all be over by 2015, a lot of it depends on how aggressively paper monies get printed from here on in. I think $3,000 is an absolute minimum target. I can believe in targets certainly above $5,000 and it’s theoretically possible to go to $12,000, that’s dollars an ounce for gold.

If Mr. Bernanke stays on his current agenda I think those higher numbers will be what you will see. We’re looking at the trashing of the dollar. As Marx pointed out, it’s the most assured way of destroying your economy.

There’s a book called ‘The Road to Serfdom’ by Hayek, pointing out that when a country is in debt, getting deeper into debt as Lord Keynes said, ‘Doesn’t work.’ All it does it make the problem worse and it takes longer to solve.

We’re moving away from the dollar being the main reserve currency on the planet...We’re going to move into an era where world trade is done in mixes of renmenbi, rupees and baskets, and the baskets of currencies will need to be weighted by something can’t be printed like gold.

10 comments:

  1. I have no doubt there will be a gold/silver backed currency in my lifetime.

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  2. How about one basket...filled with gold. The value of a fiat currency can be based on how much gold it could buy at any given time. Nations (people) that well manage their economy could buy more for less. Other nations, less for more until they fixed their monetary problems. And, actually, the gold can stay put since there would be no need to defend an artificial fixed exchange rate. International commerce could do the balancing automatically.

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  3. Since we're blue-skying here, how about a wall of separation between money and state? States should no more coin money than they should start religions; should no more make legal tender laws than execute infidels.

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  4. +1 for private money.

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  5. Good luck separating the state and money. Even if you have a gold standard, the state can simply change the exchange rate, just like pretty much every government has in history. This is why I prefer buying rounds sometimes, as there is no misleading number stamped on them. BTW, the article by Warren Buffet's father on LRC today is excellent.

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  6. New Middle Ages, here we come. Read The Climax of Rome, chapter 3 by Michael Grant. Add in the banksters to the military, and see where we are now. So, history is irrelevant, is it? The dollar has lost 96% of its buying power since 1920. Now see where Rome was a century later. The "barbarians" didn't conquer Rome; they just tried in vain to pick up the pieces. Rome collapsed from its own stupidity, which is where our politicians of both parties are now.

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  7. I can,t believe that some have gotten into buying Rounds in order to presrerve their weath by way of silver, only to sell as the price corrects. I for one, got in at $18/ oz and I am averaging $24/ oz as of now, and will continue to cost average and buy on the dips in price. I recomend considering to continue buying & holding. As long as the Fed is printing money, silver will rise. You must understand that silver is very volatile. Read all you can on Silver. Good luck.

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  8. So what would happen if all the OPEC nations demanded gold, actual gold for oil. Would nations actually send the physical gold out of their vaults and how long before it no longer would be in our country. The question of gold as a currency to with which to enact world trade is a very tricky one, as long as we are using gold shares and funds we are still in the paper world of promised future realities. What those will be is the interesting part of this exercise we call life.

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  9. The day the arabs start demanding Gold for oil is the day the US really goes Roman Empire and just uses its military to seize the oil fields, keep out the media, ect.

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  10. I have been buying gold since $330 and silver since $4. I have always believed that we are headed for trouble with the mismanaged government spending. And yes, I have sold since $27 all the way to $47 but NEVER will I sell it all. And I believe it can all go higher because we can't stop printing money. The government prints money to create inflation that reduces the oversized debt....they simply attempt to inflate it away. It doesn't work. There is a real potential for economic chaos and anyone that is not prepared (guns/ammo/gold/silver/food & water stores/medicine)is in real trouble. DO NOT think the government will protect or take care of you. Be prepared to take care of yourself. Until our politicians move to reduce our spending and debt, the country will wobble along. With nearly 50% of the country on some kind of government assistance, you can bet that no politician will have the nerve (or the support) to do anything, therefore we are doomed in our current form.

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