- This calculation/valuation of price of gold does not include a debt jubilee. Ie. The $10,000/ounce figure is based on backing the money supply with gold. For gold to be used to extinguish debts, bailout banksters … ie debt jubilee it has to be multiples of $10,000/ounce.
- Jim Rickards: A Global Monetary Reset is Just a Matter of Time — Gold Will Be Revalued to At Least $10,000/ounce
by JAMES RICKARDS, https://dailyreckoning.com/
“Money Is Gold — and Nothing Else”
Today I’ll provide an overview on why I recommend gold in every portfolio, and why gold may be the best performing asset class in the years ahead. Specifically, my intermediate term forecast is that gold will reach $10,000 per ounce in the course of the current bull market that began in December 2015. I recommend that investors keep 10% of their investable assets in physical gold (with room left in the portfolio for “paper gold” in the form of ETFs and mining stocks). Here’s the analysis:
We begin with the 10% allocation. The first step is to determine “investable assets.” This is not the same as net worth. You should exclude your home equity, business equity and any other illiquid or intangible assets that constitute your livelihood. Do not take portfolio market risk with your livelihood or the roof over your head. Once you’ve removed those assets, whatever is left are your “investable assets.” You should allocate 10% of that amount to physical gold.
This gold should not be kept in a bank safe deposit box or bank vault. There is a high correlation between the time you’ll want your gold the most and the time banks will be closed by government order. Keep your gold in safe, non-bank storage.
The next part of the analysis concerns my $10,000 per ounce forecast for the dollar price of gold. This is straightforward.
At that point, either the U.S. acting on its own or a global conference resembling a new Bretton Woods will turn to gold to restore confidence. Once that route is chosen, the critical factor is to set a non-deflationary price for gold that restores confidence, but does not lead to a new depression.
Here’s the math on how to compute a non-deflationary price of gold using the latest available data: