Why the gold price is going to $2000+

[GoldNugget]

Today in LemetropoleCafe.com Bill Murphey wrote about the discrepancy between how many GATA.ORG supporters view the world versus how those on "Planet Wall Street" view things. Planet Wall Street refers to the views you receive from the main stream media which are totally wrong.

Here is Bill Murphey's summary of the incorrect views from the Main Stream Media regarding the economic stituation:

*Deficits don’t matter that much anymore (a view held by new Fed chief Bernanke).

*The economy is vibrant.

*Our financial markets are unfettered and free … we are the shining beacon for the world in that regard.

*Who cares about M-3 anyway?

*US employment is vigorous and very healthy.

*The US consumer is stretched, but will continue to spend … supporting the economy.

*Losing our manufacturing base is not that significant because we are in the "Google" information age.

*What rigged gold market?

*Who cares about the gold market? (Most of the so-called experts in the Planet Wall Street bullion dealing world have gotten it wrong for five years. Why start getting it right now? Most are neutral to bearish at these price levels and NONE are looking for dramatically higher prices in the years to come. Most Planet Wall Street firms sneer when approached by clients about gold and silver investments.)

*The corporate profit picture is strong and firming.

*The micro picture is King when it comes to the market. The horrendous macro picture will be dealt with by somebody else.

*"Everything is fine." Why worry? Look how calm the markets are!

*The US stock market is in great shape and ready to make substantial new highs.

*The US Government is giving us an accurate picture when they report on various economic stats.

*Financial market derivatives need not be regulated and are a boon to Planet Wall Street and the US economy.

*The dollar is strong these days and deserves to be so.

Bill Murphey writes "Many in the GATA camp see it this way:"

*The current account deficit, trade deficit and US Government fiscal deficit are horrendous and will have a profoundly negative impact on the average person in America sometime in the future.

*The US economy is not as vibrant as it appears … propped up by massive liquidity injections by the Fed.

*The US financial markets are managed … and have become extremely so since 9/11.

*Doing away with the M-3 Fed money numbers is yet another demonstration of the Orwellians in Washington obfuscating what they are REALLY doing and the real behind the scenes story.

*The US consumer is tapped … close to the breaking point. As new funds dry up from the refinancing of mortgages, it will have a profound effect on the buying habits of the US consumer.

*The gradual loss of our manufacturing base in America is a big deal and not healthy for our country in the years ahead.

*The gold market has been rigged for a decade, distorting the true health of the American economy. As a result, Americans will be stunned by their sudden deteriorating standard of living in the years ahead. They will be clueless as to how they have been conned.

*The GATA camp has been dead-on the past five years as far as price predictions have been concerned. We said gold could fly without the dollar doing anything, contrary to almost everyone else. It has. Our camp is looking for $2,000+ gold in the years ahead as a result of the nefarious activities of The Gold Cartel.

*We could not be more enthusiastic about investing substantially in the gold and silver sector.

*Corporate profits have been aided by the Fed’s liquidity injections.

*The macro issues will bury the short-term micro pluses for the market in the months and years ahead.

*The US stock market has been putting in a massive top.

*US Government economic stats are fudged. This includes the CPI and employment stats.

*This is the calm before the storm. The markets have been calm due to PPT/Fed market interventions, trying to hold it all together. At some point in the months ahead, the US financial markets will to into convulsions to a certain degree.

*US financial markets are a disaster waiting to happen. Warren Buffet is correct. Derivatives are "weapons of financial market destruction."

*The dollar is a disaster waiting to happen.

[delkulara]

There are always two sides to a coin.
Fools pick sides,ignorant to truth that a coins sides cannot be divided from the coin itself and that the wise owner of the coin,is not capable of being torn by duality.

Peace & Aloha

[delkulara]

Here are some interesting #s.

2004 us custodial gold and silver holdings #s placed into the
Precious Metal Calculator from Dendritics
http://dendritics.com/scales/metal-calc.asp
Gold holdings of 245,262,897 oz. = $164,019,317,106 USD
Silver holdings of 7,075,171 = $101,425,762 USD
TOTAL worth todays market value = $164,120,742,868 USD
Wikipedia gives #s of us dollars in circulation at $760,000,000,000 USD

It would take 4.63 dollar in gold &/or silver to = 1 printed dollar.
Making the dollar in truth worth less than a quarter of the printed value.


Then there is the
U.S. NATIONAL DEBT CLOCK

The Outstanding Public Debt as of 02 May 2006 at 10:48:51 PM GMT is:
$ 8 , 3 5 0 , 1 9 0 , 7 5 4 , 4 1 9 . 6 9

I have no desire to add this figure to my already concerning numbers

[delkulara]

Here are some more very interesting #s.
from:http://www.gold.org/discover/knowledge/faqs/index.html

Total gold ever mined = 145,000 tonnes
[1 short ton = 32 000 ounces]THAT MAKES
Total gold ever mined in ounces = 4,640,000,000.
At todays value of 664.42 USD / Troy Oz = $3,082,908,800,000 USD

[delkulara]

may 9 2006
699.80 going up nice and steady.

[ted wronski]

For any one who is listening and reading this text. Gold is the only game in town the deficit will get larger, jobs will disappear, consumers are tapped out, housing starts are on the decline which will last for years, maybe decades,the entire economic picture is very bleak and the world has no other alternative currency which will provide them with the returns they are accustom to. THUS, fgold will remain the metal , currency of choice . It will reap huge gains in the months to come and the time is now to get on the rocket which will see gfold in the 1500.00 range, by this time next year. I hold about 400 ounces of this stuff and look to this as my, pot at the end of the rainbow . Good luck all you money hungry capitalists sign ted wronski

[4321bob]

Gold could probably be at $1500 in a year without breaking a sweat.

I think that it will break its recent highs of $720 during September and then make and all time high above $850 in Jan 2007.
Then by 2010 gold should be above $5000.

A concerning factor is the US economy. The Dow Jones could lose 50% in order to meet gold at their historical ratio of 1:1
See article: Dow Jones / Gold Ratio

If the DJIA remains intact we could see gold at $10000 per ounce, either way they both should return to this ratio and with Bernake at the wheel there is nothing stopping this...

4321bob

www.gold-prices.biz

[jadayu]

when the yellow metal was around 270 some time back i used to tell my friends once the restraining hands of central bank and the gold cartel (or the pirates, if you may) are taken off then it will be a zoom to the sky. but that would leave the USD well behind in turmoil - something that no administration would like.

so restraining hands on the gold will stay - wish the gold is free to roam than plied about like now.