RE:Egon von Greyerz: Gold To Skyrocket! Rgd`s, delazus delazus wrote:
Gold To Skyrocket As Paper Financial Assets Are Decimated 6/12/2015 Today the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events warned King World News that unprecedented financial destructions will engulf the world. He also warned that a major panic is coming as the world is rocked by global financial chaos. Egon von Greyerz: And if you adjust for inflation and take gold back to the 1980 highs, the 1980 high today would be over $9,000. One of the charts KWN featured showed that if we adjusted the 1980 high today for gold vs the monetary base, the price of gold would be nearly $20,000. So on any basis gold is massively undervalued. But that is likely to change in 2015. Whether the move higher starts during the summer or in the autumn doesn’t really matter. At $1,200, gold is the best investment and insurance that you can buy.
There is a 21st century counter perspective to gold. Its called bitcoin.
Like gold, bitcoin has no counter party risks.
Like gold, bitcoin is expensive to manufactor. Today it is probably cheaper to mine a gram of gold than it is to produce a new bitcoin. In fact today, it is probably much easier to mine a gram of gold (just melt down a few old pcs and you've got a gram of gold plus a huge enviro mess) than it is produce a new bit coin (huge amount of power draw to do the computation but no nviro mess).
I can move a ten million dollars of bit coin in a zip drive weight 10 grams or via email. Now trving the same amount of gold.
While gold is shiny and nice to look at, would I want to pay 10,000 for an ounce? Maybe but for many people in the 21st century bitcoin might be the better option.
The other factor against gold staying even above Sprott's 2400 level, is basic supply and demand. There are huge numbers of ounces in copper gold porphyrys thruogh the world that aren't economic to develop at $1500 but would be a $2500. Plus copper is the basis of civilization techological advancement so it is a win win.... Toss in automation, and you get a natural cap on the price of gold.
So, Egon is definitely old school and it really is different thsi time :)... oh, no, did I just say its different this time... hate when I do that... :)
That said when the US dollar finally fails we'll probably see 50,000 or even 100,000 gold. But that will only come after the 2nd american civil war and that is more likely to 50 years off in the future than 5 years.