James Lewis

Is Barrick Responsible for $1,000 Gold?

Anyday now the USA Government is going to smash the hell out of gold. Be very careful, trading gold is a very hard thing to do. When there is stress in the fiat money system governments need to make it clear to investors/its people that gold is not safer than the government run fiat money system.

To do this, huge amount of gold are sold over short period of time.
$1000.00/Ounce could become $900.00/ounce shortly.

If the governments do not jump in, then we are going to $1250.00
My bet is the governments have a vested interest in take the market down

Long Ideas for an Upcoming Crash

Who says the USA has a choice with its currency.
Also it is clearly in the best interest of the USA government to hyper-inflate by printing money. How else are they going to pay their liabilities?

Depreciating the dollar is the best way to increase exports.

No I think depreciating the dollar, hyper-inflating money supply makes perfect sense to the USA. They have no other way out.
If they are smart enough, whiel they are printing money. They may use some it to develop their manufacturing base further to accomodate increased demand in exports because of low dollar. And at the same time stockpile gold, commodities and oil. Rather than giving the banks it to distribute loans to people who can not pay them back like our last cutting cycle.

In the meantime if we are all right in the Gold Bull camp.
We are looking at gold going to 1250 in the very near term.

Bombing Iran would certaintly do the trick.
Cit Group going bankcrupt could work.
Oil going to 175 USD/barrel could get us moving as well.

My view is if we breach the all time high a lot of money will move into Gold. The inflation adjusted high is quite far away and really if the USD index is going down to 55-60. We should breach that even.

Fun Times Ahead