Mike Maloney sees $20,000 gold as gold hits $1,868 an ounce
Posted on 19 August 2011 with 4 comments from readers
Author Mike Maloney is one of the most persuasive and articulate of the modern gold bugs. In this video he reviews the powerful case for gold prices of up to $20,000 an ounce.
This is also an excellent primer for those who still have not understood precious metals and make ridiculous argument like saying they do not pay any interest – what do you think a 30 per cent value gain so far this year replaces?
ArabianMoney would only add the caveat that whenever we post videos like this it is usually after a major price increase and just before a price correction. It may be different this time.
Gold prices could now be entering a parabolic spike as the greatest gold bug of all time Jim Sinclair argued would happen above $1,764 (click here). Today gold hit $1,868 for the first time.
4 Comments posted by readers:
Mind blowing! Gotta watch it again! Thanks, Ed., for posting it for us!
Gold is definately on the verge of a price explosion, and it could happen quite quickly thanks to the actions of a certain South American President.
All ‘big’ Gold investors currently have thier eyes on President Chavez. He is in the process of publically repatriating his nations Gold reserves.
President Chavez is a fan of theatrics, he likes showmanship and likes to be the centre of attention, so you can be aaured that if things don’t go his way he will make sure the whole world gets to hear about it.
Chavez wants his Gold, and he wants it now, but he is simply doing ‘in public’ what many other countries and ‘seriously big’ investors have been doing ‘privately’ for months. That is taking physical possession of Gold (and Silver in some cases too).
There are lots of ‘politics’ involved in all of this, but to cut a long story short, if Chavez did not go public there would have been (and still may be yet) a very good chance indeed that various ‘logistical issues’ would be thrown up in front of him in order to at least delay, if not prevent, repatriation of his Nations Gold reservers.
That said, all ‘big’ (and many small too) investors are now watching this issue closely, because if Chavez is seen to be experiencing ‘problems’ in withdrawing his Gold and / or taking possession, the entire Gold market will be ’spooked’ into demanding physical delivery – with catastrophic consequences for the Banks and Bullion Vaults.
If deliveries are not made ‘Real’ Gold (and real Silver) will then be seen by the world to be in much more limited supply than the computer generated or ‘paper Gold’ (and paper Silver) would have the world believe. A scramble for physical will ensue and the resultant price increases will explode the markets with such force that they will be changed for ever.
So, to prevent this from happening it is indeed likely that Chavez will get his Gold (we will all know if he dosen’t!), even if it has to be ‘bought’ of the open market or ‘borrowed’ from elsewhere to supply him.
However, what happens when the next big investor demands physical? Could it be supplied? Where will the Gold come from? If it has to be purchased what effect willl that have on prices and on the markets?
What if the same happens for Silver?
Chavez just may have given new momentum to the chain of events over the last year that have promised to uncouple the physical price of metal from the paper price.
Interesting times ahead…………
There’s a vast number of intelligent people in the world who, unfortunately have not invested in physical gold and silver . . . this video is a MUST WATCH for them. It’s also an educational and historical account of money.
@ The OldMan:
You’ve hit the nail on the head! Chavez has unknowingly planted “worry seeds” in the minds of the world’s wealthy folk regarding gold storage, and the “fractional reserve games” that are being played in London and NY (i.e. reselling the same gold to a great number of people).
It’s only a matter of time before some of those ultra-rich want to take physical possession of their gold; many will be shocked when told that they can’t have it all, because each ounce of gold has been sold to at least 10 different customers. Over the past few years, some wealthy Arabs took possession of their gold from London; other people who tried to remove their gold were given a “bribe” of 25% to 50% to leave their gold there. It will surely happen again.
I’ve begun to take notes from this video since it helps understanding what he says. Interestingly, he says that there is nothing else that he wants to own at the present time other than gold and silver. This fits with my view that we should invest getting on for all our investable wealth in bullion, leaving perhaps 10% of so for ETFs with ArabianMoney.
Maloney also makes a clear distinction between currency and money. Very helpful advice that we should increase our holding of money which is gold (and silver), and get out of currency-based investments like bonds, shares and cash.
He takes this view for the present time because he talks about “wealth cycles”, so that the next wealth cycle will indicate investment in bonds, shares and property but NOT in this current wealth cycle. Not now!