Post by
oldmanmike on Dec 20, 2022 1:37am
USD vs Gold Price
Just wanted to add an observation I have.
The current gold price today at $1780 and 104,5 usd index is not that much different from a couple of months ago when gold was hitting a triple bottom at about $1630 and a usd index of about 112.
Consider the usd backs off to 98.... gold is about $1880. With the ongoing pressure on the usd, one can easily visualize its value falling below 85...gold would be around $2100.
For all the other reasons mentioned in previous posts, gold is cheap TODAY. Goes along way to explain the share price at $3.30 to $3.40 range.
As the rest of the world dedollarizes, the $7T of us debt held outside of the US will come home to roost. With their current debt ($31T), that would push it $38T. Add another year of deficits and it will close in on $40T. Oh yeah and interest rates are going up to 5%.....$2T an year in interest!
History has shown debt to be the underlining problem with falling currencies....so it is today.
Comment by
oldmanmike on Dec 20, 2022 2:19am
Mistake! $7T foreign debt is in the $31T. A little humour. A $100 bill is 0.003 inch thick. You need 2 1/2 feet for $1M, about 1/2 mile for $1B, and 15,500 miles for $31T.... about 60% the circumference of the earth. Using $1 bills, you go around the earth 60 Times or to the moon and back 4 1/2 times. Paper is cheap!