Making The Case For $12,000 Gold & $360 Silver

Global Financial Assets are more inflated and propped up than ever.  According to the most recent figures published by The City UK Fund Report, total Global Conventional Assets under management topped $105 trillion in 2014.  That’s one hell of a lot of future PAPER CLAIMS.

Unfortunately for most investors, the majority of these supposed assets will evaporate into thin air from where-ith they came.  Bubbles were designed for children to make and play with… not meant for adults to use in the financial industry.

Regardless, the global financial system is now polluted with a massive amount of toxic bubbles covering all corners of the planet.  When the first large one finally pops… WATCH OUT.

Gold & Silver As A Percentage Of Global Financial Assets Are Less Than Peanuts

I put together this chart from figures I found at  According to the data, gold comprises 0.58 percentage of global financial assets, while silver comes in at a pathetic .013%:


Even though gold is a little more than a half of a percent of total global financial assets, it’s at least 45 times greater than silver.  Which is why Central Banks hate silver much more than gold.  Why?  Because very few Central Banks own silver and the market is so tiny that if a significant amount of funds decided to flow into silver, it would cause its price to skyrocket higher.

These next two charts show how gold and silver as a percentage of global financial assets have declined since 1980:



In 1980, gold represented a stunning 5% of the total global financial assets, while silver comprised of 0.25% (a quarter of a percent).  However, over the next three and a half decades, these percentages declined significantly.

Gold is now 9 times less of a percentage of global financial assets than it was in 1980, while silver is 20 times less.   The Fed, Central Banks and Wall Street did a wonderful job administering a FRONTAL LOBOTOMY on the public, which forced them out of real assets and into the largest financial ponzi scheme in history.

Making The Case For $12,000 Gold & $360 Silver

If investors decided to increase their gold and silver investments to equal the percentage in 1980, we would have the following:

Gold = $1,300 X 9 = $12,000

Silver = $18 X 20 = $360

Before some of the readers start rolling their eyes and BELLY-ACHING that this is just another attempt at precious metals hype, let me add a few logical points of view.

Many precious metals analysts including Jim Rickards and Jim Sinclair, believe we are going to see a gold price north of $10,000.  They base their forecast on backing all the outstanding U.S. Dollars by a certain percentage of gold.  The higher the percentage of gold backing, the higher the gold price.  However, $10,000 gold seems to be a base price when faith in the U.S. Dollar goes down the toilet.

So, the $12,000 gold price figure shown above is not all that crazy.  Furthermore, a $360 silver price when gold is $12,000 is a 33/1 Gold-Silver Ratio.  We already experienced a gold-silver ratio of 31/1 in April 2011.  Gold was trading at $1,500 when silver was trading at $48.  Which means a 33/1 gold-silver ratio at $12,000 gold and $360 silver is really not that insane after all.

That being said, I actually believe the future values of gold and silver could be even more silly and stupid than $12,000 or $360.  Why?  Because the popping of adult sized massive financial bubbles could actually push gold and silver investment percentages even higher than what they were in 1980.

What the hell happens when global investors try to invest 10% in gold or say just 1-2% in silver?  This may seem outlandish right now, but when financial institutions start going bankrupt and bankers start jumping off of roof tops, COMMON SENSE investing will likely return as proper investing logic like a 2 X4 across the forehead.

When the world finally experiences a global Lehman Brothers event that pushes us into massive depression, investors will seek safety in the precious metals.  Unfortunately, there will be very little supply… only a much higher prices.

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62 Comments on "Making The Case For $12,000 Gold & $360 Silver"

  1. I’d like to compare the price in other currencies. Here in Australia spot Silver is currently $24.91 by your calculations $24.91x 20 = $498.2

    The dollar fluctuation makes quite a difference Steve.

    Spot Gold in AUD = $1775 x 9 = $15,975

    • Yeah it makes a difference to the conversation and how you consider it, eg the “discourse” is of how it has been continuosly pummeled down to about USD $14, but the weakening AUD has meant it went down to AUD $20 when near parity but stayed in an AUD $20-23 range until just a few days ago – saw it break through AUD $26 as the USD price broke $18-19

      Really makes all the factors to consider complex, eg Industrial demand which would be a drag in a downturn and deflationary environment while Silver will simultaneously have a boosting factor of investment demand all the while thinking on currency issues

  2. Silver will surpass $5,000 and will surpass gold because it will become more rare than gold and by that time the paper money will be so diluted and governments of the world will be in so much debt that the market will find the true price.

    • Could you provide the timeframe? “Pundits” avoid it saying cunningly that nobody knows the timing. Everyone can make such predictions.

        • Riiiiiiiiiiiiggghhhttttt.

          • It’ll be $100 by New Years and double and triple each year or more there after.

            Triple Double
            Jan 2017 = $100 Jan 2017 = $100
            Jan 2018 = $300 Jan 2018 = $200
            Jan 2019 = $900 Jan 2019 = $400
            Jan 2020 = $2,700 Jan 2020 = $800
            Jan 2021 = $8,100 Jan 2021 = $1,600
            Jan 2022 = $24,300 Jan 2022 = $3,200
            Jan 2023 = $72,900 Jan 2023 = $6,400

      • I laugh at those who rightfully point out the lack of a time specified when someone indicates a predicted move in the price of a stock or commodity is analyzed and predicted to change one way or another, then use this lack of timing to ridicule the analysis.
        It’s really easy, after all. So why don’t you do some research and tell me the day Tesla stock is going to peak? I would really like to know. I don’t ask for the price point or reasoning behind a move in price as presented in the current article, which does so, just tell me the timing. I will short the stock and get rich.
        The reasons for the eventual change in the price of precious metals are quite evident. The current article gives some plausible explanations for a drastic elevation in price, but not a specific mandated price point. the timing is unknown. Who knew the forces in the market could have kept this thing alive this long? The reasons and inevitability have not changed.
        So, give it a shot and impress us with your timing skills.

        • Tesla stock already peaked. With the huge cash burn that bad boy has the battery plant will be empty in 5 years.

        • Timing is a mugs game because it is at the behest of fates no-one can determine. Let’s say Japan’s next leader comes out declaring an end to the death by a thousand cuts economy and he expresses the aspiration of killing his own bond market, starting a new currency on sound money. Lets say the japanese people respond to his wisdom and show overwhelming poll support. The Yen plummets, the Nikkei plummets, Japanes people go to hard assetts.
          Then the fuckker has heart attack 1 week before his election and its back to the same old same old pretend and extend.
          I’ll say it again, timing is a mugs game – in the offering AND in the asking

  3. Silvrwillwin | June 30, 2016 at 6:07 am |

    Steve , Both your analysis , one being this report and the other having to do with EROI and the loss of oil
    playing a very real part in bolstering the true value/price of physical silver and gold are spot on in my
    It is my opinion , the bubble candyland paper world will erupt first.

    Don’t leave out what one of the most honest of the mine owners , present day , Keith Neumeyer CEO of First Majestic was quoted as saying ; ” For every 1 ounce of physical gold that is pulled out of the ground , worldwide , 9 ounces of physical silver is , right now.

    $ 360.00 is a good start.

    • not entirely in agreeance, though Steve’s website is one of the best in this space.
      I challenge ya, Steve, on the $360 call, in the following sense:

      for the capital flow necessary to bring silver to $360, it must needs be a result of the financial decimation of paper/digital assetts
      Now, if Silver stayed exactly where it is now and the financial sector shrunk by, say 50%, then silver would constitute 0.026 % not 0.013 % of global assets
      You dig me, pigmy?

      So as the financial sector shrinks and capital flows to silver, its more likely they will meet in the middle – around the $160 – $220 range. That’s a figure i exactingly and scientifically pulled out of my arse. But you get my point – silver will not rise in a vacuum, it will hold onto the pulley rope going up while the fiscal sector is the loosed-balast tied to the pulley rope going down.

      in the collapse of the financial sector they print as much money as is destroyed, whereupon that final figure of silver is a function of central bankers willing ridiculousness

      nuff said.

  4. Otto Thomas | June 30, 2016 at 9:18 am |

    Interestingly enough I have heard this for over a year now, that Gold and Silver will go through the roof, but all the financial pundits are saying they don’t know when this may happen. Unless they can pinpoint an actual action which would trigger the rise in Gold and Silver, it is just so much lip flapping BS.

    You take your math and multiply the numbers all you want. They don’t mean “S” unless you can back up your assertions with something along the lines of fact. They don’t even have an idea as to the trigger event.

    At the lead-in to the 2008 financial collapse, very few men knew what was going to happen and actually made a fortune shorting their supposed AAA instruments filled with toxic debt. AND, here we have many financial pundits all feeding off each other’s pronouncements, thus creating a hysteria that is not yet warranted.

    • The US is broke F.A.C.T
      The EU is broke F.A.C.T
      Japan is broke F.A.C.T
      Currency will be printed to infinity F.A.C.T
      Pensions are underfounded by 100 to 1 F.A.C.T
      The Red Shield announced a gold coin for 2018 F.A.C.T

      You want more? Just research a bit and educate yourself

      • I came across this quote the other day !!

        “Learn to work hard and study.
        The more you study, the greater your success will be.
        Knowledge is the greatest thing you can have.
        It is better than money in the bank. You can never lose.
        knowledge and no one can steal it from you; therefore,
        get all the knowledge you possibly can.”


    • “I have heard this for over a year now, that Gold and Silver will go through the roof”

      a whole year? gee, I’ve been hearing it for … oh good grief, nine years now.

      think it will get back to $1950?

  5. when gold hits 12000, silver will be 1000 bucks

  6. WelshFarmer | June 30, 2016 at 10:18 am |

    Whilst I am myself heavily invested in physical bullion, I don’t expect the fiat price to go up by very much until/unless there is a COMPLETE system breakdown. Of course by any rational measure Au/Ag are chronically undervalued, but the very strength of the arguments put forward here and elsewhere means that it is imperative for the survival of the global financial system – in its current crooked form – that the Au/Ag prices are actively supressed on a day-by-day basis.
    NIRP means that physical Au is, for the first time in history, in effect an interest-bearing investment, and potentially more attractive than holding the bonds of just about any nation. Therefore, as the pressure on the system grows, so will the degree of manipulation increase in tandem …. ad infinitum. The banking cartel are prepared to countenance UNLIMITED paper losses on massive synthetic shorts, because the alternative would be a complete collapse of the banker’s system and power.
    Once the jig is up on fiat, some of these guys face a lifetime in prison and/or pitchforks.
    They are not about to walk peacefully into that dark night…..

    • true, but always bear this in mind:
      The smart arses that are suppressing gold don’t do it out of pure faith in fiat – they ain’t that dumb, they study the death of currencies etc. The PURPOSE of suppressing gold and encouraging fiat is to set up a TENSION that snaps back with violent force in terms of price movement at the very last moment. Bullshitting to people about the relative values is an important part of that tension build.
      Why do all CB’s hold gold while yet calling it a barbarous relic? Because these are the custodians who preside over these once or twice in a lifetime bait-n-switch games that ensure the continuity of their gratuitous family wealth for future generations

  7. Seriously guys? A timeline?

    Let me consult my magic eight ball. “When will we see $500 silver?” Answer: “Yes”

    Give me a break. Even when markets traded on “fundamentals,” nobody could accurately predict a stock’s price, or any other commodity. That is why you had to adjust your valuations for non-diversifiable risk, or “Market Risk.” I speak in past tense, because “fundamentals” and performing true, meaningful valuations has become irrelevant with central banks overstepping their mandates with monetary policy, and governments failing to step up to the plate on fiscal policy.

    I thought after the Brexit vote, we would finally see a much needed stock market correction. It appeared to be taking place the first two trading days after, but we have returned to pre-Brexit highs on the third and fourth trading day. So is Brexit bullish or bearish?

    Everybody knows UNCERTAINTY = RISK = decreasing stock prices, decreasing bond yields, and increasing PM prices, but we have *increasing* stock prices. It makes you really wonder about the question posed to Yellen about if the Fed’s third pillar is propping markets up.

    Everybody knows that price discovery is manipulation, and the laws of supply and demand are no longer valid. Nobody knows when the Invisible Hand will force a reversion to the mean. Nobody knows. The real question is, are you prepared in some way? Have you taken the steps to protect your wealth?

    I’ll tell you what. I will give you the exact date when silver will break $400 if you tell me the exact Mega Millions jackpot winning numbers. That is how ridiculous that question truly is… It’s just my opinion though…

    • “I thought after the Brexit vote, we would finally see a much needed stock market correction. It appeared to be taking place the first two trading days after, but we have returned to pre-Brexit highs on the third and fourth trading day. So is Brexit bullish or bearish?”

      wrong question. the question is, “is the stock market real or fake?”

      • If the stock market was rendered fake, then that means shareholder’s claims on companies, through stock, bonds, whatever would not exist.

        Private ownership is a major underpinning of our entire society and law. If the stock market was rendered fake, all “trust” in any such law or system would cease to exist. That would bring absolute chaos.

        We can agree to disagree…

        • “If the stock market was rendered fake, then that means shareholder’s claims on companies, through stock, bonds, whatever would not exist … That would bring absolute chaos.”


          are we learning yet?

        • WelshFarmer | June 30, 2016 at 11:53 am |

          Cook-ie, It is not fake in the sense that buyers do not exist. No, the fakeness lies in the nature of those buyers. They are often off–shore shell funds set up by the Cartel and funded by indirect channels. Perhaps they want to end up owning everything ?
          In that case, their ownership will be legitimate.
          This is what ultimately happens when you have the deadly combination of:

          i) fractional reserve banking
          ii) A banking cartel given the right to create unlimited credit which can then be passed around their associates.

          In a way, I’m surprised it has taken them this long to buy up the whole world. They had been fairly cautious until quite recently.

          • “In a way, I’m surprised it has taken them this long to buy up the whole world.”

            they’re probably surprised at how fast it’s going.

            when this fiat money chaos all started I told everyone, “what you are seeing is neither inflation nor deflation. it is wealth transfer.” everyone ignored me. oh well.

      • WelshFarmer | June 30, 2016 at 11:46 am |

        Exactly. At this point in the game, significant corrections are just too damn dangerous for the stability of the rotten system. They will be monitoring all markets continuously, ready with unlimited fresh confetti to buy anything (and anyone!) that looks weak at the knees.

  8. What’s this I hear about JPM been found not guilty of colluding with the comex to price setting of bullion?

  9. howdy! off-topic but in this column …

    … you said Silver Will Break $50 In 2016, I said no it wouldn’t, you said keep in touch. so, here I am keeping in touch.

    as I write this silver is now $18.47, up from $13.89 at the time of your column. it’s up 4.58, 31.53 more to go.

    I’ll check back again in three months.

    • And it is starting to spike, up to 19.25 in after hours. That’s 7% in 24 hours. One more event and people will panic buy. Once it breaks $20 you may not need an event, when it goes it will be quick.

  10. “Gold as a percentage of Global Financial Assets is 9 times less than it was in 1980.”

    one may carelessly presume this is true, but have you taken account of the fact that most global financial assets are fake, outdated, or otherwise not as they appear?

  11. “When the world finally experiences a global Lehman Brothers event that pushes us into massive depression, investors will seek safety in the precious metals.”

    oh nonsense. investors will seek FOOD. how many chickens will an ounce of gold buy you in venezuela right now? none. how many bags of rice will an ammo can of silver eagles buy you in venezuela right now? none.

    • Technically, gold and silver can get you a lot in Venezuela. US dollars are in high demand and preferred in the black market were goods are mostly available. People can convert their gold and silver into US dollars, which you can then use to buy whatever you need.

      Venezuela is not the worst case scenario, because foreign currencies are still being used. The Fiat system is still in place. Bartering with gold and silver wouldn’t be necessary unless the entire Fiat system collapsed worldwide, which probably wont happen. What is more likely is a new currency issued, maybe it is a global currency, but I highly doubt it. It doesn’t really matter what it is to someone who owns PMs because their gold and silver will always be convertible to whatever new currency is used, and thus RETAINS their wealth, although most likely it will drastically increase it.

      • “US dollars are in high demand and preferred in the black market were goods are mostly available. People can convert their gold and silver into US dollars, which you can then use to buy whatever you need.”

        ok, I’ll accept that at face value, my only source of information for venezuela is the sensationalist headlines in public news media. watching the video of people stealing chickens off of the truck I couldn’t help but notice how many people on the road were NOT participating ….

        “gold and silver will always be convertible to whatever new currency is used”

        not if the new currency is digital. and that’s where this is going – collapse, or digital. and I just don’t see g/s having utility in either environment.

        • Looters are the people who have nothing. Looting does not occur in major cities.

          For digital currency to work, again, you would need trust in the “system” and law. If you think the stock market is fake, then digital currency would never work.

          P.s. I have friends whose parents are in Venezuela.

          • ” Looting does not occur in major cities.”

            well I don’t know about THAT, this looks reasonably urban to me ….


            “For digital currency to work, again, you would need trust in the “system” and law.”

            oh now nonsense, all you need is control. if they only way you can obtain gasoline or food or pay your mortgage or utility bills or taxes is by debit card, then trust is not an issue. you can bet the top 99% of economic participants will follow the rules to the letter and there will be precious few leaks permitted to the outside of “the system”.

            in a digital system pm’s will be banned. say, you want to buy gasoline for gold. won’t be able to do that at the station, the flunkie behind the counter won’t know what you’re trying to do, let alone be able to help you do it. so you go to your neighbor, tell him “siphon some gas for me, I’ll give you this gold”, he says ok. now these new cars keep track of everything that goes on – how much fuel is used, when the gas cap is opened and replaced, etc. so this guy thinks he’s being sneaky, but in reality he’s in full view, and he’ll get a letter or a visit, “what are you doing? are you trading gas for something else?” and he’ll stop.

            money is a medium of exchange. your gold will sit in its ammo can, untouched, unused, unusable, because you won’t be able to exchange it for anything.

          • Hey Gman, You are referring to urban lifestyle, in rural areas barter is alive and well. Also if a currency is digital, they cant outlaw silver since it will be needed for all those electrical devised. also if your not into silver why are you on steves site? I do believe your opinion that food and water will be the king but that would be people in survival mode, what about people like me, farmer with livestock and may skills, what will you trade with me? im not accepting some digital medium of exchange only necessary for taxes and slaves with no skills

        • Farah Bazzrea | July 1, 2016 at 12:55 am |

          “not if the new currency is digital. and that’s where this is going – collapse, or digital. and I just don’t see g/s having utility in either environment.”

          lol thanks for the laugh… first thing, digital requires electricity, technology. collapse option will make PMs worth as much as… well, “gold” and “silver”.

          funny thing about PMs and the folks that say they’re worthless. they either come up with some contrivance of technology has rendered them obsolete and/or fail to offer a viable alternative. convince all the investors owning precious metals, by some estimates, as high as $100Trillion, that their holdings are worthless. see how that works out for you.

          belief is a powerful system. gold and silver will ALWAYS have value because they ALWAYS have. yeah, you’re right. in the middle of a heightened conflict, there might be those who would prefer food over PM, but most aren’t stupid enough to not understand they could easily swap PM for food, directly or indirectly through a series of trades.

          cutting through the chase, PMs are a store of value. if i’m storing my wealth, i’m sleeping a whole bunch better if my stack is secure rather than hoping the lights don’t go out due to an EMP or terrorist attack on the power grid and all my money just disappeared for who knows how long. meanwhile, gotta eat.

          again, though… i appreciate the humor. too little of that in the world.

  12. That’s still a 33 to 1 silver gold ratio. Manipulation of Ag with Au. Silver should be at parity with gold when all the manipulation ends. I mean what does gold really do? nothing! whats it’s intrinsic value, it doesn’t tarnish much. that’s it. It’s really a useless metal except for jewelry.

    • “whats it’s intrinsic value”

      it makes great money.

      what is that money worth? who knows. whatever it can purchase at the time you attempt to make a purchase, no more and no less. maybe a ten-acre ranch, maybe a box of donuts, whatever you can get. but as an abstract medium of exchange, gold is pretty good.

    • Your Gold to Silver ratio is about 25 year out of date bro, the ratio is currently 75/80:1, there was a brief moment in 2012 where it got close but hasn’t been 33:1 since about 1985 and that was through heavy manipulation.
      The historical ratio however is 15:1 and the way things are going we could well be on our way to a breakout, carefully watch over the next 18 months how gold fluctuates whereas silver will make very steady and successful gains.

      Keep stacking folks, it will pay off

  13. Steve,

    You made an error with your comparison of gold investment declines from 1980. You calculated your 9x decline from the 1960 figure and not the 1980 figure like with silver. The correct numbers should be 2.74 (1980) / .58 (2015)= 4.7 times decline. This is unless of course you input the data in the charts incorrectly. Just wanted to point this out.

    • Jared,

      Thanks…. you are correct. Didn’t realize they threw in the 1960 in there…. my eyes didn’t pick up the 1960. They didn’t do it for silver. Sure does change things a bit. However, it still was 5% in 1960.


  14. you can make the case for $800 gold and $10 silver too..nothing has changed in as far as their ability to make infinite PAPER contracts to short silver to $10 and gold to $1250,and they just may well do it tomorrow[then again they may not ,but got my money on”they will”] b4 the holiday weekend..Independence Day weekend..perfect..the 4th of jewel lie..what a colossal joke..they can track us whenever,wherever,we are.where we go…and with who
    .the patriot act..the NDAA etc etc…yeah yada yada yada blah blah..Independence? independence day my S….we’ve never been more enslaved as we in the know all know..
    the cartel will suck in all the stackers and bugs for the 2,000th time, that think this time weez really goin to $50 silver and 2K gold,
    then they drop the hammer for the 2,000th time and smash er down [ for the 2,000th time] straght line straight down out of the 6:00 Asian gate [EST] smashin er back to $17 and $1250 by 5:20 EST Friday afternoon..and we stay totally,absolutely,completely pissed off for 3 days,wanting to ring the PPT’s and central banksters frickin criminal necks..
    good ol Ron knee reagan signin the PPT into law..just another NWO scoundrel in the long line of treasonous
    POTUS Zionist world government demonic Rothschild puppet scoundrels squatting in the oval orifice fir 4 or 8 ..

    • gary,

      While you bring up a good point, I believe the Elite are now in serious trouble. Even though you may disagree, the BREXIT vote changes everything. As I have mentioned before, I don’t care if the politicians force England to stay in the EU, the dominoes are now falling. Other countries will follow suit.

      If you don’t think 22 of the top BANKS in the world all of sudden announcing a stock buy back while raising dividends isn’t a sign of DESPERATION after the BREXIT vote, you need to start considering just how bad things can get.


      • It was as though the central bankers got them all in a huddle…..”Ok in 3…2…1….” LOL

    • Farah Bazzrea | July 1, 2016 at 1:07 am |

      The wild card is the impending actual shortage of Au & Ag due to increasing investment demand and decreasing production. SGE deals in real world physical and will not be complicit in London’s paper price fixing when this supply/demand imbalance begins affecting deliverable bullion to the mints and private dealers.

      Otherwise, you’re right. The scoundrels will continue self-dealing as long as they can get away with it. Fortunately, it’s fast approaching midnight and I suspect you know what they say about “After Midnight.”

      “After midnight, we’re gonna let it all hang down.
      After midnight, we’re gonna chug-a-lug and shout.
      We’re gonna stimulate some action;
      We’re gonna get some satisfaction.
      We’re gonna find out what it is all about.
      After midnight, we’re gonna let it all hang down.”–EC

  15. Silver makes great money, copper makes great money ,they have many other uses, that is what gives them intrisic value and makes them a good form of money. Gold not so, jewelry is about all it’s good for it. Very little intrinsic value. If all the gold in the world disappeared today the world would move right along, no bi loss. If all of the worlds silver disappeared that would modern life to a near stand still. THAT’S INTRINSIC VALUE. Gold’s a dog in a horse race.

  16. So we know we are in a bubble, that will pop, but when it does pop, will it take silver with it? Back in 2008, once the shit hit the fan, silver sunk hard from 15 to just under 8/oz. that’s roughly a 50% decline in price. Why won’t it happen again? Especially if we have a Huge bank failure. Will banks flood the market with silver? Will paper silver crush the price? Logically, silver should act as a store of value and not be sold… But people see it as a commodity for industry, rather than money.

    Sooo overall, my MAIN question, what do people think, is it better to buy silver now or wait for a likely pullback and then buy silver? I imagine physical silver would be best of course, assuming you could get any at all. Go all in now or wait for it to copy what it did in 2007-2008, then buy? This is assuming as most people believe that the stock market will crash come October of 2016.

    The only difference between now and 2008 is that there’s more investors that appear to be more conscious of the market rigging going on. Demand for physical silver is already extremely high and that deutsche bank is going to work to give up silver market rigging info to save itself. But the banks are still more leveraged than ever and insane.

    • In 2008 things were somewhat contained as far as asset classes causing chaos. Now we have a full blown currency war all over the globe with a currency race to the bottom. 60 trillion more in global debt. Demand is waaay higher now than then for PM before the crash. Most countries had much higher rates so they could cut….not now. Central banks had somewhat clean balance sheets then….now they are loaded up. Comex doesn’t have a lot of PMs compared to contracts. Just one non delivery, not just at Comex, and the markets will freak. A big difference now from then and I can’t imagine PM prices going down much, if at all.


  18. For gold, the chart shows a value of 2.75 for 1980, so it is only about 4.75 times that of 2014 and not 9 times! So based on author’s assumption gold = 4.75 x 1300 = 6175 $

    Assuming gold to silver ratio of 40 (optimistic scenario for silver), silver price will be 154 $.

    Otherwise if we use the suggested 360, the ratio will be 6175/360= 17, which is not realistic!

  19. Great piece. Turning the lack of cheap energy into cheap debt is a bitch. The system has to be bailed out exponentially, until currencies blow up as they always do.

    The pendulum swings, from hard assets to counterfeit currencies and vice versa, for thousands of years. This one promises to leave a few scars behind. Get some emergency food and waterfilters.

  20. What if they invest 10% in silver, we would have 20000$ silver. What if…

  21. rwmctrofholz | July 1, 2016 at 2:50 pm |

    When I read articles like this, I privately wonder if gold haters are in an unspoken competition to see who can be the first to point out, “You can’t eat gold….”

    • rwmctrogholz,

      Yes, it’s true you can’t eat gold or silver. However, you cant eat worthless 401k’s or Treasuries either.

      However, I would guarantee individuals holding onto physical gold and silver will be able to trade for food much more readily than owning worthless 401k’s or Treasuries.




  22. Since the masses are not really on board with all things physical ( compared with all things paper), is it not possible to flood the markets just one more time (or ‘many more times) with paper certificates during this bullish run of AU and AG? I guess what I mean is; Is this spike in commodities too new for it to last? Is it just a knee jerk reaction to Brexit? I am just wondering if I should wait a while before jumping in and buying again.

  23. I have at least two reasons to be hopeful for the future of America.

    One is the existence of two organizations of college student activists which are growing rapidly if not exponentially since their creation in 2008. Students For Liberty is on every inhabited continent now with a growing number of regional conferences each year all over the US. recruits are encouraged to read the works of the Austrian economist as well as other thinkers in the pro individual freedom movement. Young Americans For Liberty grew from a handful to over 260,000 student activists who are passing the torch to their fellow students.

    Another is the works of Ayn Rand whose philosophy holds that each human has the right to his or her own life and that no one is a sacrificial animal to be used by the state. Beyond her novels which all have an individualistic theme are her non fiction essays e.g.Capitalism:The Unknown Ideal, The Virtue of Selfishness, The Objectivist Newsletter etc Atlas Shrugged dramatizes the contrast between her philosophy of reason, reality and rational self interest and the prevailing ideology of mysticism, altruism and collectivism.

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