Print version GoldMoney Alert - 6 September 2009 Coming Inevitably - $1,000 Gold
I concluded my last alert on August 10th
with the following comment: "We
may now be at one of the last buying opportunities before gold climbs
above $1,000 and silver climbs above £10. A 4-digit dollar gold price
and a double-digit Sterling silver price may be just around the corner."
Gold in terms of US dollars and silver in British pounds closed that day at $945 and £8.70 respectively. This
past Friday gold closed at $994.90, rising 5.3% in less than a month.
Silver closed in New York Friday at £9.92, a spectacular 13.9% rise,
which is slightly higher than silver's 13.3% rise in terms of dollars
during this period. Importantly though, gold is still below
$1,000 and silver is still below £10. Neither metal has broken out of
its base and made new record highs - yet. So despite these spectacular
gains, a 4-digit dollar gold price and a double-digit Sterling silver
price are still around the corner. But we are now of course closer to
that event than we were back in early August. Last week's surge
in prices is an indication of the buying power that has been building
for months. Expect to see a series of similar weekly surges when gold
finally climbs above $1,000 and silver climbs above £10. The question on everyone's mind is, when will that be?
And always, the answer is the same - no one knows because the future cannot be predicted. While
the timing of $1,000 gold and £10 silver is unknowable, one thing is
certain. As long as the Federal Reserve and the US government take
actions that debase the dollar, the dollar price of gold will rise.
Similarly, as long as the Bank of England and the UK government take
actions that debase the pound, the Sterling price of silver will rise.
It is a certainty, just like night follows day. Years from now
we will look back at today's action with amazement at how low the price
of gold and silver were, just like I can today look back to my college
years when gold was only $35 and an ounce of silver could be had for 46
pence. It is a distant memory - and those prices will never again be
seen. Eventually a three-digit dollar gold price and single-digit
Sterling silver will never again be seen, as long as those currencies
continue to be mismanaged and continue on the path to the fiat currency
graveyard. And there is nothing in the following charts to suggest that
those two currencies are about to reverse course (the dollar silver
chart is included for comparison, and remember, GoldMoney provides
charts for the precious metals against all the major currencies here
As I noted in the last alert: "Both
[precious metals] look ready for prices to soar much higher, probably by September or October at the latest."
Those dates were of course just a guess, perhaps an educated one but a
guess nonetheless. But there is no guesswork to conclude that the
dollar and pound are being debased, and that in the absence of any
policy advocating sound money in the US and the UK, inevitably gold
will hurdle $1,000 and silver will clear £10.