The current meltdown of the world’s debt bubble is likely to continue in the course of the next months and Hugo Salinas Price, Mexican business magnate, investor, and philanthropist and the president of the Mexican Civic Association for Silver, believes that the salvaging all debt and derivatives might require a gold price as high as between $22,000 and $50,000 per ounce.
He believes that gold will soon help balance international trade, discipline government budgets, and re-liquefy debt that is becoming unpayable.
The secular trend to expansion of credit has morphed into contraction and liquidation. It is my opinion that the new trend is now established and no action by any of the Central Banks (CB) that issue reserve currencies will do anything at all to reverse that trend.
Salinas Price’s commentary is headlined “The Coming Revaluation of Gold” and it’s posted at the civic association’s website, Plata.com.mx, here.[The original post written by Mark O’Byrne (goldcore.com) is presented here by the editorial team of munKNEE.com (Your Key to Making Money!) and the FREE Market Intelligence Report newsletter (see sample here – sign up in the top right corner) in an edited ([ ]) and abridged (…) format to provide a fast and easy read.]