Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Rising Price of Gold a Vote of No-Confidence in Central Bankers; $10K Gold on the Horizon (Video)

  by    0   0

Jim Rickards recently appeared on CBC News’ The Exchange and made the case for $10,000 gold.

He said the recent jump in the price of gold represents a world-wide vote of no-confidence in central bankers.

The increase in the dollar price of gold is just a reflection of the decline of the dollar. So, it’s sort of a vote of no-confidence in central bank policies. Investors are looking around saying. ‘We’re losing confidence in central bank money. We’d like another form of money, thank you very much.’ It’s called gold. So, that’s part of the reason gold is going up.”

Rickards went on to explain why he thinks gold will ultimately hit $10,000. He said it’s not a guess, and he doesn’t just throw that number out to get attention or to be provocative. He actually has mathematical calculations behind his assertion. Rickards explains his reasoning in this video.

Highlights from the video.

“The increase in the dollar price of gold is just a reflection of the decline of the dollar. So, it’s sort of a vote of no-confidence in central bank policies. Investors are looking around saying. ‘We’re losing confidence in central bank money. We’d like another form of money, thank you very much.’ It’s called gold. So, that’s part of the reason gold is going up.”

“When I say the dollar price of gold’s going up, I don’t think gold is going up.  I think the dollar’s going down.”

“Just two weeks ago, Ken Rogoff, former chief economist of the IMF and a professor at Harvard said, ‘Emerging market economies should devote 10% of their reserves to gold.’ So imagine an IMF economist and a Harvard professor saying buy gold. He said, ‘Don’t worry if it’s in short supply, the price will go up.’”

“Governments actually want inflation. They tell you that. It’s part of their policy. But they’ve tried everything. QE1, QE2, QE3, helicopter money, currency wars, Operation Twist, forward guidance – they’ve tried everything and cannot get the inflation.”

“I expect [gold] to go to $10,000. That’s the implied non-deflationary price. When I say that, people think I’m pulling a number out of the air to get attention or be provocative. That’s not true. It’s basically take all the gold in the world, take all the money in the world, at least the major economies, divide one by the other, using a safe 40% backup in gold, you get to $10,000 per ounce. That’s the price gold would have to be to restore confidence in the monetary system without causing deflation. So, it’s not a guess. There’s actually mathematics behind it.”

“I recently had conversations with Ben Bernanke…and John Lipsky, the only American who ever headed the IMF. Two conversations, 9,000 miles apart, but they both used the same word to describe the international monetary system. They said it’s “incoherent.” And I know they didn’t rehearse that for my benefit. What it means is there’s no anchor. There’s no gold anchor. There’s no dollar anchor…we wake up every day and it’s jump ball in terms of currency valuations…That’s a very dynamically unstable system. It will collapse unless there is some effort at reform.”

Download SchiffGold’s Free Report: The Powerful Case For Silver

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

New Peter Schiff Interview: We’re Paying the Price for Deficits

Last week, Peter was interviewed on Speak Up with Anthony Scaramucci. In their conversation, they covered a wide range of important topics, including inflation, the fate of the dollar, and the trade-offs between gold and cryptocurrency. 

READ MORE →

Peter Schiff: Gold is the Canary in the Economic Coal Mine

This weekend, Todd Sachs interviewed Peter on the state of the economy. They discuss the parallels between now and the 2007-2008 housing crisis, the role of economic sentiment in voters’ opinions, and why foreign central banks are losing faith in the dollar.

READ MORE →

New Peter Schiff Interview: California Dooms Workers and Congress Kicks the Can Down the Road

Peter recently appeared on OAN’s Real America with Dan Ball to discuss the minimum wage, government spending, and inflation. He first points out the blatant corruption of the California state government, which recently passed a $20 minimum wage for all fast-food restaurants except those that bake their own bread. The state’s governor, Gavin Newsom, has […]

READ MORE →

Peter Schiff: Household Debt Highest In Nation’s History

In a recent interview, Peter Schiff was featured on Real America with Dan Ball. 

READ MORE →

Peter Schiff: This Will Send Gold Off to the Races

Peter Schiff recently appeared on the Commodity Culture podcast to talk about gold. He said that while gold has done relatively well this year despite significant headwinds, we haven’t seen anything yet. Once the markets realize inflation is here to stay, gold will be off to the races.

READ MORE →

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Call Now