Tag: money supply

Silver and Gold Will Thrive Beyond Exponential Growth of Debt

Silver and Gold Will Thrive Beyond  Exponential Growth of Debt

Systems will reset and change when exponential growth at current or reduced rates becomes impossible. The transition is likely to be difficult, dangerous, and the ensuing trauma will not fade quietly into the night. Exponentially increasing debt supported by nothing more than exponentially increasing promises will end in national and/or global disaster. When the reset comes, and it may be years away, would you rather hold assets that are based on debt, trust in a possibly insolvent counter-party, and denominated in the currency of an increasingly insolvent government and central bank . . . . or physical gold and silver?

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Gold Model Calculates Gold Price Of $2400 To $2900 In 2017

| March 4, 2014 | Category: Price
Gold Model Calculates Gold Price Of $2400 To $2900 In 2017

A reasonable projection for the equilibrium gold price (a “fair” price for gold) in 2017 is $2,400 – $2,900. Remembering that market prices can spike significantly above or crash below the EGP for many months, we could see a spike high above $3,500 or $4,000 in 2017. Extraordinary events such as a global war or dollar melt-down could push prices higher and sooner.

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Where Are Gold Prices Going?

Where Are Gold Prices Going?

In the short term, prices cannot be predicted with any real accuracy. But if one takes a longer view, there are factors that can and should be considered. We all know the arguments about inflation and quantitative easing, but let’s take a look at a more basic price driver: the supply of physical gold.

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Deviation Between Gold And Money Supply Presents Rare Opportunity

Deviation Between Gold And Money Supply Presents Rare Opportunity

Across the globe, fiat currencies are being printed with wild abandonment as debt-addicted governments try to inflate their economies out of the ongoing crisis. In the United States, the Federal Reserve has tried it all, employing numerous asset-purchasing programs that have yet to spur any sort of meaningful recovery in the “real” economy.

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David Morgan: The Silver Supply Squeeze In 1980 Could Look Like A Warm-up

David Morgan: The Silver Supply Squeeze In 1980 Could Look Like A Warm-up

During an interesting interview on PracticalBull.com, David Morgan made the statement that the silver supply squeeze of 1980 could look like a warm-up compared to what could be coming in the not too distant future. The bull run in the 70’s took the price of silver from less than $5 to almost $50 dollar. Of course, there is nothing shocking to this statement for long term followers of the precious metals markets or for people that understand today’s monetary catastrophe that is unfolding. But still it’s worth one’s time to look at the analysis of a respected person like David Morgan which leads him to such a conclusion. His analysis […]

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The Case For A Higher Gold Price Based on Monetary History

| October 14, 2012 | Articles: Insights
The Case For A Higher Gold Price Based on Monetary History

People tend to forget quickly and fail to learn from history. As George Bernard Shaw once said : “What we learn from history is that  people don’t learn from history.” So it’s worth one’s time to look back to the past and learn what others before us learnt sometimes the hard way. As far as Gold’s role in our monetary system is concerned, the most recent learnings and insights come from “the Bretton Woods period”. Apart from being a nice resort in the mountains, Bretton Woods stands for the agreements that created a new world monetary system in 1944. Courtesy of Scott Minerd, chief investment officer of Guggenheim Partners, who […]

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The printing press is running hot, but where is inflation and how will it affect gold?

| September 5, 2012 | Articles: Insights
The printing press is running hot, but where is inflation and how will it affect gold?

This article is based on an interview with Claudio Grass from Global Gold in Switzerland. He gave his view on the question why inflation seems low although excessive amounts of money have been created over the past years. He describes as well what that means for the gold price. The key to understanding inflation lies in the implications of an increasing money supply. Here at Global Gold, we rely on the “True Money Supply” which is provided by the Mises Institute. The “True Money Supply” was originated by Murray Rothbard and represents the amount of money in the US economy that is available for immediate use in exchange. On the chart […]

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US money supply data hints at trouble ahead

US money supply data hints at trouble ahead

Confirmation over the weekend that the Spanish government will receive €100 billion from eurozone rescue funds to help shore up Spain’s fragile banking system has lifted stocks and commodities this morning. Spain’s benchmark IBEX-35 index surged 4.5%, with strong gains seen on British, French and German exchanges. However, though the euro bounced early in trading it has started sinking again, though it remains above last week’s low of $1.241. Gold and silver have also been lifted following the Spanish news, with some traders looking to lighten up on their US dollar/Treasury positions. Gold broke back above $1,600 briefly during Asian trading – suitably so given the strength of sovereign demand […]

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Why gold money?

| May 7, 2012 | Articles: Insights

Recently Rob McEwen of McEwen Mining Co. and Michael Crofton of Philadelphia Trust discussed the pros and cons of the gold standard. In this debate, Mr McEwen made an excellent case for gold as “the ultimate currency”. He argued that using gold as currency could help restore fiscal discipline in governments; and that, in essence, it already is the world’s reserve currency. Conversely, Mr Crofton stated all the typical arguments against the gold standard: that there is not enough gold in the world for everyone; that it would prevent the authorities from controlling the monetary system; that it would hinder the government’s debt financing, etc. Here are some of my responses to […]

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Gold QE3 Scares

| April 9, 2012 | Articles: Insights
Gold QE3 Scares

Sellers hammered gold again this week on news from the Fed. The minutes from its latest FOMC meeting convinced traders the odds for a third round of quantitative easing are waning. This was the latest in a long line of QE3 scares that have become the bane of gold’s existence. But they are merely a distraction from the Fed’s ongoing massive monetary inflation behind the scenes, which is very bullish for gold. Gold has suffered much from QE3 scares. This week’s FOMC minutes drove it 3.4% lower in 2 trading days. On the last day of February, gold plummeted 5.1% after the Fed Chairman’s testimony to Congress made QE3 look […]

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Our exponential debt system

| January 18, 2012 | Articles: Insights

The word “debt crisis” has made it into everyone’s vocabulary by now. People are talking about how we were “living beyond our means” and are debating how spending cuts, …

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Gold’s role as money

| January 17, 2012 | Articles: Insights

In this video Juan Ramón Rallo, economist and university professor in Madrid, and Alasdair Macleod of the GoldMoney Foundation talk about the role of gold as money. Rallo states that fiat money does …

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