Tuesday, April 19, 2011

Midas Letter Sticks Its Neck Out; Says $5000 Gold Credible

The Midas Letter starts off by reminding us that the of $1,000 gold, seemingly outlandish a few (actually, several) years ago, have proven to be conservative in retrospect. The question, of course, is how high gold can contunue to go. The Letter says $5,000.
And what, pray tell, is coming down the pike to support a gold price of $5,000?

First and foremost, the United States dollar.

The whole global financial system is trapped in a situation whereby we have no choice but to permit the United States to continue counterfeiting money. There is no single political force or voice or even prospect with the knowledge and the power to put a stop to the insanity into which we continue to spiral on a daily basis. That means, despite the unanimous chorus from the financial media mainstream, which anesthetizes the human race in an effort to thwart violent protest by design, the fabrication of electronic dollars will continue apace. For years.
The second reason is related to the first: increasingly, money managers are getting out of U.S. debt. This example should persuade sovereign wealth funds and other pools of foreign capital to get out of the U.S. dollar itself, which would push up gold. The third reason is public pressure to remonetize gold.
The decision by the people of Utah to do just that was big news recently, even though technically and legally, it always was legal tender in that state. It is this final legitimizing step by regional governments that will open the eyes of the otherwise hypnotized American public. For now, the move is painted as fringe by the idiotic mainstream, who are unwitting pawns for the financial services industry – U.S. Federal Reserve – U.S. Treasury trio of economic under-miners.

There's no date given for the forecast, but the context makes clear that they mean the blow-off top for the metal. $5,000 would mean more than a triple from current levels.

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