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Then $4500… and by that time I
think the US bond market will explode.
The US passed the ‘fiscal
cliff’ by making an agreement to raise taxes over 600 bn and cut spending $20 bn. Wow.
In two months the US has to raise the
debt limit. The Limit is already reached but the Treasury is using side
measures to cover the deficit till then. Supposedly they can make a new deal.
Given the fact that the US is the only
major economy with any solvency left, even with our immediate national debt
at $16 trillion, and a president who is determined to borrow as much as
possible in is his remaining time (guy has no real knowledge of much of
anything really) …that
The Gold price will ratchet up
inexorably this year, I would be super surprised if it did not easily break
$2000 a month or two after they automatically raise the debt limit for the US
in two months. IN fact I think the gold price will break and hold $2000 and
then immediately test $2500 for a time, before being beat back to the new low
baseline, $2000, and during 2013, it will fluctuate between $2000 and
let’s be a bit more generous $3000. (Really my estimate is 2000 t0
2500).
But my more generous estimate will be
probable. The US fiscal situation is out of control. As I stated it’s
the only major economy left with some credit.
Seriously. China. Laugh. They are fake, and have a banking system far worse than ours.
Europe. Laugh. Need I say more?
Japan, laugh, they are on the verge of a
bond crisis and using extraordinary measures now to fund their huge deficits,
and have a trade collapse and are now even on the verge of saber rattling
with China over those small insignificant islands.
And THEN, we talk the war potential in
Asia over this and also the Mid-East. It’s an easy call to say that
gold is headed really to more like double its present numbers. Over $3000.
And here I am including a chart of our
calls in the last two years, take a look at the
arrows, the arrows were where we called either tops or bottoms.
Those are some incredible calls.
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