To achieve balance, the price of gold will have to rise exponentially.

George Gammon –

Jim Rickards’ Gold Price Prediction Explained ($50,000+ is Possible)

– Flash Points –

1 – Even the US can never be in full control of the US dollar.
2 – Banks create money through the fractional reserve system.
3 – The money supply has grown exponentially.
4 – The amount of derivatives has grown to insane levels.
5 – Consequently, the price of gold will have to increase exponentially.

– Synopsis –

In this revealing 15-minute video, George Gammon explains why the price of gold might skyrocket to $50,000 per ounce, or even higher. He provides 3 reasons for such a price explosion.   

Reason 1 – The Dollar is Collapsing.  

Various noted analysts offer different trajectories re the movement of the dollar, but they are in complete agreement that the endgame is a total collapse of the dollar.    

Jim Rogers and a few others believe that the dollar’s status as a safe haven will first propel it higher, followed by a collapse. On the other hand, Peter Schiff, James Rickards, and others believe that the dollar cannot go much higher than it is now, and that we are already in the first stages of the dollar collapse.   _{(Image source)}

Reason 2 – The Money Supply in the US has Grown Exponentially. 

According to James Rickards, we will eventually have to return to a gold standard. Under such a system, we will first have to determine the true value of gold.    

We can do so by simply dividing the total money supply by the number of ounces of gold. Regardless of how we calculate the money supply, this gives us a gold price of over $50,000 per ounce.   

Reason 3 – The Money Supply beyond the US has Grown Exponentially.    

George Gammon extrapolates from Rickards’ conclusion to arrive at a gold price of over $100,000 per ounce.

The US does not have full control of the creation of US dollars. Much is created in the so-called “euro-dollar”  shadow-banking system, outside of the US. Since the “true global reserve currency”  includes all those “euro-dollars”  created, the actual value of gold – stated in terms of US dollars – must be doubled.   _{(Image source)}

Consequently, gold’s true value is not $50,000, but at least $100,000 per ounce. In fact, given the exponential increase both in the money supply and in the insane amount of derivatives on which much false wealth has been created, even that $100,000 may be far too low.    

Moreover, it’s not only those “euro-dollars”  created in European banks that inflate the price of gold. There are so-called “euro-yen”  created outside of Europe, as well as so-called “euro-euros.” 

The head spins, while the numbers spin out of control and beyond belief.

– Insight from Outside –

Since Nixon took the world off the gold standard in 1971, the money supply has grown exponentially. And since the rampant financialization of the economy beginning in the 1990s, the amount of derivatives has grown to absurdly stratospheric levels.   _{(Image source)}

A Question of Balance 

That insane growth has not been reflected in the price of gold. In order to achieve some balance, the price of gold will also have to rise exponentially. Whether that is done by establishing a new gold standard, or by a natural rebalancing of prices and values, it’s certain to happen. 

A Question of Relative Value 

Through it all, the value of gold will remain essentially stable. It’s just that its price will change to reflect its value relative to fiat currencies.    

In other words, the prices of fiat currencies will plummet to their real value, which is zero.