$60,000 Gold Price May Be Laughably Low-Bill Holter

May 27, 2015

Recent Bloomberg analysis says if China backed its currency with gold, the price would need to be 50 times higher than it is today.  According to Bloomberg, that would be a gold price of around $64,000 per ounce, which is much more than gold expert Jim Sinclair predicted a few years ago.  Financial writer Bill Holter weighs in, “That was a few years ago, before some of the QE, and Jim has said that $50,000 gold may turn out to be laughably low. . . . I think it is very curious that Bloomberg would run this because Bloomberg is as mainstream Wall Street as you are going to get. . . . It would be my guess that Bloomberg has some type of information that China is going to announce their holdings.  I can show you that China has 10,000 tons of gold.  That’s pretty easy to do.  I use the figure of 10,000 tons, and oddly enough, that is the figure that Bloomberg used.”

So, what does the mean to the U.S.?  Holter says, “After they make an announcement that they have all this gold, people are going to say, wait a minute, where did they get all that gold? . . . It’s come from Western vaults, the biggest Western vault is the U.S.  So, the market place will make a judgment between the yuan and the dollar. . . . This is definitely a scheduled event in the fall, and the speculation has been that the Chinese may announce prior to that in order to give the IMF time to evaluate the data.  From my point of view, the Chinese may make that announcement to give it a push.  The dollar versus the yuan is going to depreciate greatly.  You could see a 20% to 30% move in the dollar versus the dollar.  The yuan is going to strengthen.”

Would the U.S. be forced to do an audit to verify its 8,000 tons of gold if China reveals theirs?  Holter says, “The market place will say do an audit or we will keep selling the dollar.  You very well could see an implosion.  I have said for many years now that there is going to be an implosion.  You are going to go to bed Friday night in a world that resembles the current reality, and you wake up Monday morning and everything has changed.  You will be locked into your position.  Markets are closed. . . .  Think about the brokers or banks that have a huge amount of derivatives. . . . The top two banks in the world alone have $150 trillion in derivatives.  The amount of collateral they need to post to keep the game going overnight could be in the hundreds of billions of dollars.  Where are they going to get that from?  The Fed will not be able to put out this fire.”

Another fire, tensions brewing between the U.S. and China in the South China Sea.  Holter says, “There are a lot of unknowns.  The only thing you do know is if it gets started, it’s really, really bad.  You are talking about nuclear nations.  It’s not just U.S. weakness being projected here, it is Chinese strength. . . . If we get into a shooting war, what are the odds it would not go nuclear?  Whoever is losing will push the button.”

Why is there not a lot of mainstream media press on this crisis?  Holter thinks, “The press is not covering anything in the South China Sea because it shows weakness of the U.S.   We are also not getting much in the mainstream press of Russia China joint activity.”

Join Greg Hunter as he goes One-on-One with gold expert Bill Holter, now of JSMineset.com. 

(There is much more in the video interview.)

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Courtesy of http://usawatchdog.com/


In 1792 the U.S. Congress adopted a bimetallic standard (gold and silver) for the new nation's currency - with gold valued at $19.30 per troy ounce
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