I will agree on one thing...gold may get to $10 000 one day, due to value devaluation, and this will make gold increase. Like anything cost, .10$ long time ago, and you pay for same item 1$ today.... it make sense to see gold price , hit $10 000 one day.
But this would not be due, to a smart investment, but to a normal life cost increase.
At first, may I ask you 3 questions....
why $10 000? ...why not ? $5 273.48? ...my answer, it is because, it look like a "round number" and |easy to market" for promotion.
Why 2020? ...what there's so magic about?
Why do you say, "don't trust street media, when they tell you what stock to buy.... but you trust them, when is up to "read" what book to buy when it come to " gold mania"?
Who are those "expert" , what they knowledge base on and why do you listen on "what they believe" , and not "what are the fact"?
http://www.cnbc.com/2016/06/10/is-10000-gold-on-the-horizon-one-commodities-expert-says-yes.html
http://usawatchdog.com/nick-barisheff-10000-gold-within-5-years/
https://www.caseyresearch.com/articles/ounce-gold-worth-10000
https://www.bernardwatch.com/ByPrice/10000
http://www.cnbc.com/2016/06/10/is-10000-gold-on-the-horizon-one-commodities-expert-says-yes.html
https://www.caseyresearch.com/articles/jim-rickards-gold-price-prediction-tops-10000
http://goldsilverworlds.com/price/jim-rickards-target-gold-price-between-7000-and-9000-per-oz/
Ok...you have date from divers people, saying the same over and over, since 10-12 year....watch and re-watch and, re-question your self.
Do you remember, a one decay ago of the "specialist" about planet will burn, if it increase by one or two degree?
I remember re-watching this video...and it amuse me...of how fullish they was.
Ok let's start to see some chart.
most of the time, in "trading" or "financial" world, we use correlation, to see how thing get affected, to predict a direction or price in future, of XYZ commodity, stocks, or anything else.
Here...we can see, the correlation between FED and Gold, working only few time, but not at more than 50%. Now, we can take out all relationship between FED and Gold out.
Gold and US dollar...people, say if Gold collapse, it will sky-rock gold.
True... if every 10$ of decrease equal 800$ increase of gold price, if dollar collapse, gold/usd will be at $10 000.
But if dollar, loose value , gold will only stabilize your price, and if gold get out of business...something else will take place.
If fact, US Dollars value, change already few time in history.
There was time when you could exchange paper money for gold.
http://www.antiquemoney.com/gold-certificates/
source: http://www.babypips.com/school/undergraduate/sophomore-year/dollar-index/what-is-the-dollar-index.html
Very interesting information... United State, liked or not, act very smartly , by creating petro-dollar , and dominate the work with they money.
Now, that they are one of the most important value in almost all currency, it would take quite a time, to really devaluate this currency below 75$ ( critical price for US dollars).
Assuming we are in Bull market, very conservator, without any big down...and only Ups....it would take you more than 150years until you get too $10 000
NOTE
- value of $10 000.00
- Expense Storage cost: $35 a month: 12 month x 35$ = 420$ + 150 years = -$63 000.00
- if you bought at price of $1 000/1oz gold , for $10 000 value. After 150 years, you value will increase by 10.
- 10 x $10 000 = $100 000.00 - $63 000.00 = $27 000.00 for 150 years.
Ok let's say... gold are moving FAST ...at the highest % he can... this is 45% up ( for those who are trader, they will understand.... for those who are not, let's say, this it is the most fastest move a market, or price can make.
On this chart..there's no Pull back ( something impossible), but assuming....
2043... this is you date of hitting your magic Target.
On this chart, I'm showing how quickly gold need to rise, to get at $10 000 price, by 2020.
Why 2020? for some reason, this was the number I found, current analyst was predicting. Don't ask me why....I have no idea, but it is what specialist in gold market says...
Ok , so let's use they words, and see how this chart would look like.
Personally I never saw a price moving that quickly, but let's say, there's a majors war, or something and it does.
What would happen?
- Major Panic....people would start to buy gold, at any cost
- Get credit to buy gold, sell everything for few "oz"
- As gold hitting rounds number like, $4 000, $5 000, $7 000...some smart people will start to sell they stocks.
- As gold hit $10 000....in a day, you would see price drop very quickly...why? simple because, this was the target everyone was waiting, and if you miss it...you will be the "looser" of the gold rush stroy.
- Also...as gold would rise that quickly, few thing will happen:
- Rise of small and big crimes
- probably an increassement of taxation from the government
war - why not...companies bankrupt and stealing your storage?
- due to shortage of storage...where would you put you stock? in your home...at the risk, of putting you wife, and kids at risk of criminal?
...this it is only an apercu of how it may happen...up to you to imagine what could happen...
Let me know, you opinions, :) and thank's for Following and Upvote!
Cheers