Gold Price: The case for gold at $5000 an ounce within 24 months

Gold Investment - 13 February 2012

Eric King of King World News recently had an interesting interview with Egon von Greyerz, the Founder and Managing Partner of Matterhorn Asset Management AG, an asset management company based in Switzerland. Von Greyerz is of the opinion that gold could hit $5000 and silver $166 an ounce within 24 months.

Von Greyerz bases his opinion on the fact that central banks “…are in an absolute mess and they need to print unlimited amounts of money.  So we will have a lot of zeros after the price of gold in many currencies.  But even in today’s money I see gold going up many times from here” (Greyerz - Gold Price to Hit $5,000 in 24 Months & Silver $166, King World News, 6 February 2012). It makes sense, the more central banks create/print fiat currencies (non-redeemable paper notes, fiat paper money, electronic money, the Devil’s money, toilet paper money, trash) in order to continue fuelling the global fiat Ponzi scheme, the more fiat money will be needed to purchase goods (drop in purchase value), including precious metals such as gold and silver. Von Greyerz added: “The risks are enormous, Eric.  The risk that many banks will fail is major. The authorities and central banks, around the world, are going to try to rescue them, but it’s not certain they can or will.  That’s why, again, it’s important to hold assets outside the banking system, whether it’s gold or silver or assets in the ground. That’s the way to protect yourself because if the system survives in the next couple of years, it will only be because there is massive money printing. Without that they cannot survive.  But because of the massive risks to the financial system, I think it’s absolutely critical that investors hold a major part of their funds outside of the banking system” (Greyerz - Gold Price to Hit $5,000 in 24 Months & Silver $166, King World News, 6 February 2012). He is again absolutely correct; they have no option left but to continue to print/create massive quantities of fiat money, despite the fact that it is going to lead to hyperinflation and the collapse of all fiat currencies, including the once mighty U.S. Dollar, which is fast losing its status as the world’s primary reserve currency. This is why the United States and their partners are making and pressing for war in so many parts of the world, they need to create endless mountains of debt in order to keep the global fiat Ponzi scheme going for a little longer. A little longer, since it is after all no secret that fiat currencies, which are nothing short of debt instruments, can only survive while more and more debt gets created. However, it is also no secret, like the case is with all illegal scams, that it can only continue up to a certain point, before the whole global fiat Ponzi scheme completely collapses. Among the best ways to protect one’s monetary worth against this, as history has proven beyond any reasonable doubt, several times, is to own gold and silver, physical gold and physical silver, especially in the form of gold and silver coins. Von Greyerz continues: “We are in this for the long-term.  We got into it (gold) in 2002 at $300.  We’re telling clients today, at $1,720, that right now gold is cheap. We’re holding gold to protect our purchasing power and gold is just beginning a very major move. That move will take time. In the next two years I could see $5,000 (gold). We could see it before the next 24 months. That is just an intermediate top. We will have a bigger correction after that.  But I’ve said for some time that gold could reach $10,000, and that’s in today’s money. And I’m absolutely convinced that we won’t have today’s money in the future. If gold goes up to let’s say $5,000, the (gold/silver) ratio will come back down to at least where it was in 2008, which is 30. I would say that’s a minimum. Then your talking about silver at $166” (Greyerz - Gold Price to Hit $5,000 in 24 Months & Silver $166, King World News, 6 February 2012).

Now given the above, the true gold investor tends to largely ignore the value or worth of gold expressed in fiat currencies, especially considering the nature of fiat currencies and the blatant and ongoing illegal gold market manipulation. It is however always interesting to see where the gold price is heading and to see whether one’s fiat-based budget will be able to meet one’s gold needs/demands. Needless to say, if it seems that you’re not able to meet your personal demand for gold due to personal budget constraints, then there is no reason to despair or to be ashamed. Silver is a highly cost-effective alternative at this stage. In fact, silver has much more potential than gold… consider the current silver price of more or less $33.50 an ounce and the current gold price of more or less $1723.30 an ounce. Now bring Egon von Greyerz’s within 24-month price predictions into the equation and you will see that the silver price has the potential to shoot upwards with almost 400%, while the gold price has the potential to shoot upwards with almost 200%, 200% plus short of silver’s upward price potential. Thus, there is clearly no shame in acquiring or buying silver, physical silver that is, whether one can afford to buy gold at this stage or not.