Tag Archives: real interest rates

Many agree that the United States' massive budget deficits and global monetary inflation support the gold bull market. I don't see this changing in the near future. Still, sentiment is not enough upon which to rely. I need a yardstick and, for me, that yardstick is U.S. real interest rates. [Let me explain why that is the case.] Words: 1600

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

Gold is due for a correction. It would be a non-event to see a 10 percent drop in gold and this would actually be a healthy development for markets by shaking out the short-term speculators while the long-term story remains on solid ground. [Indeed, were] gold’s relative value to return to 1979-1980 peak levels of 7.6 times the S&P 500, gold would have to hit the $10,000 mark. [Let me explain further.] Words: 1316