I just don't believe all the hype about gold being a great place to park money right now. The price of gold has been at a plateau for the past 3 years, with ups and downs, but it just doesn't look like there is the big climb the gold sellers are trying to tell potential customers. If gold was such a great buy, wouldn't they put all their resources into buying it for themselves, rather than selling it to others?
Any thoughts on gold are appreciated.
The central banks storing up more gold is likely related to the upcoming BRICS+ basket currency which will be pegged to gold, amongst other things.
Such an act will immediately debase fiat currencies, especially the US dollar. If they continue to sell gold in fiat dollars, then everyone and his dog will be trading for the BRICS+ currency, and off-loading ll their US debt. All those dollars flooding back to the US will create hyperinflation and likely destabalise the entire planet. i.e. WW3.
However, if people have truly thought ahead, then each and every country will be forced to stabilise their national currencies by backing it with gold, which could explain why the central banks are buying it up so fast, they will need to have enough to peg a currency to in order they don't immediately go bankrupt.
If that scenario really is the one that is about to happen (I don't actually know that it is, but it seems likely something like that is happening behind the scenes) then gold will immediately be the hottest product on the planet, and then some.
If the entire world moves to a gold backed currency, with current GDP levels, I wojldn't be surprised if an ounce of gold became worth the equivalent of what $50k might buy you today, and to be honest I feel that's really conservative.
Silver will also jump, and as a percentage of its current value it will likely jump more than gold. $1k/ounce for silver doesn't seem overly impossible. Maybe not that much, but I think it might peak somewhere there before dropping to maybe $7-800.
Remember, if I use dollars here, what I'm really referring to is equivalent purchasing power, ie. what those dollars would buy you today.
Because if all this does come true, then fiat dollars will be worthless and it will likely cost you $1k to buy a toothbrush.
This is just my guess, I have no insider knowledge. For all I know the figures could be 10x what I said, or we could all burn in a nuclear fireball :)
Pretty good range of possibilities :) Maybe the thousand dollar toothbrushes will be nuclear proof :)