Sunday, October 9, 2011
Mike Maloney : If history repeats and gold covers the same portion of currency supply that it covered in 1934 and in 1980 then we should be seeing prices around $15000/oz or higher , I used to say between 2015 and 2020 but it just feels like with all the financial problems that we are seeing in the world that it probably going to be sometimes earlier than that , in the next 3 to 5 years it sounds like an astronomically large number from today's starting point the launch pad here however for gold to have the same value against the dollar.
Iin other words the number of dollars that exist what I am talking about is base money here which is the paper dollar basically, it's dollars in circulation plus the dollars that banks have in deposit at the federal reserve all redeemable in paper dollars , in order for gold to cover the same portion of currency supply in other words have the same value to those same dollars that it had in 1934 and in 1980 that's the price required $15000/oz , it will be just history repeating itself it won't be unusual whatsoever.
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