Tuesday , 27 June 2017


von Greyerz: More QE & Higher Gold Prices Virtually Guaranteed! Here's Why

 

“The U.S., with $15 trillion in debt, and roughly $1.5 trillion in tax revenues, is an enormous disaster waiting to happen. At 10% interest rates the U.S. would use 100% of its tax revenues to finance the debt….This is why money printing is guaranteed…and this time, like it has before, it will lead to a financial crash [which] will be of a worldwide magnitude.”

So says Egon von Greyerz in edited excerpts from an interview* with Eric King of King World News which are presented by Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!) and www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds). This paragraph must be included in any article re-posting to avoid copyright infringement.

von Greyerz concludes his comments in the following edited excerpts:

“Gold’s rise has reflected some of the money printing up to now…and has risen with only slightly more than 1% of the world’s assets in gold….With inflation headed higher, institutions… will have to increase their allocation to gold….[yet] there simply isn’t the gold available at today’s prices to facilitate even a small move by institutional money into the sector.”

The interview can be read in its entirety here.

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Editor’s Note: The above may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.

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I believe that in the autumn of 2012 we are going to see…a series of negative events – failing economies, higher unemployment, more QE, and extraordinary levels of social unrest. When QE is announced, I see a temporary rally in stocks but at some point stocks will collapse. I’m not talking about mining stocks, but common stocks outside of the mining sector.

2. von Greyerz: Gold Going to $3,500-$5,000 in 12-18 Months – and $10,000 Within 3 Years!

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11. The “80-20 Rule” Suggests Gold Will Reach $8,300/ozt in Spring of 2015!

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The “Pareto principle” – it’s often referred to as the “80-20 rule” – states that 80% of the effects of something come from just 20% of the causes (that is that 80% of people control 20% of the wealth, that 80% of sales come from 20% of your customers, etc.) and a new report by Erste Group, the Austrian investment bank, says this principle can be applied to bull markets as well, including the current bull market in gold, and following this line of thinking, you get an $8,300 price target for gold by the spring of 2015. Words: 285

12. Update: 51 Analysts Now Maintain that Gold is Going to $5,500 – $6,500/ozt. in 2015!Gold_intro

 

 

 

Lately analyst after analyst (161 at last count) has been climbing on board the golden wagon with prognostications as to what the parabolic peak price for gold will eventually be. That being said, however, only 51 have been bold enough to include the year in which they think their peak price estimate will occur and they are listed below. Take a look at who is projecting what, by when and why. Words: 644

13. Is Gold About to Go Parabolic to $3,495 in June ’13; $10,899 in Sept. ’14 and Top Out at $32,659 on Jan. 16, 2015?

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According to my 2000 calculations, if interest rates and inflation stay constant over the next 2 years, we could expect to see (with 95.2% certainty) a parabolic peak price for gold of $4,380 per troy ounce by then! Let me explain what assumptions I made and the methods I undertook to arrive at that number and you can decide just how realistic it is. Words: 740

15. David Nichols: Expect to See $2,750 – $3,000 Gold By June 2013 – Here’s Why

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The interim peaks in gold have been spaced 21 months apart over the past 6 years and have seen gains from 80.2% to 97.3%. As such, given the fact that the low of this last correction came in at $1,524 four months ago, we can expect gold to reach a new peak price of $2,750 to $3,000 in 17 months time (i.e. June/July 2013). [Let me explain in more detail.] Words: 976

16. Leeb: Gold Going to $3,000 Before the End of 2012!

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The Fed is [going to] keep interest rates at zero until the end of 2014 [and that] is as aggressive as it gets and as bullish as it gets for gold. Inflation will be let out of the bag, maybe for the next three to four years. In this environment gold and silver are the best investments around…We are really talking about the next leg higher in this bull market…This is the leg I expect to take gold to $3,000 before the end of 2012.

 

2 comments

  1. Arnold,
    Right you are! That being said, I could not agree more with everything else you say.

    Lorimer

    • Lorimer,

      Sorry to say you left out of your summary of the von Greyerz interview the key point.

      He says that at current prices, precious metals represent about 1 percent of the total investment horizon.

      But his follow up was that when big money such as pension funds as well as retail investors get interested in precious metals, demand and price will skyrocket.

      Moreover, he says that even at today’s prices, an additional 1% demand for precious metals would represent 12 years of production at current production levels.

      Conclusion? Any sizable increase in demand will quickly outstrip supply and cause the price of the metal to go parabolic.

      Lastly, most folks I read now seem to think 2013 should be a humdinger for those of us in precious metals. I suspect the producing miners and silver will outgun gold bullion in that market. All the same, I kind of like having a whack of the stuff ‘off stream’ and out of the system and away from the confiscatory gaze of the tax folks.

      Notice also today that Larry Edelson continues with his point that there will be one last test of price lows of gold and silver. It will be soon, deep and quickly over. It is then off to the races.

      Arnold