Gold Price Under Monetary Reset 2020-2024

May 12, 2020

The Coming Monetary Reset

It is inevitable that there will be a monetary reset in the not too distant future to rein in the unlimited fiat currency printing by all major countries.  It is clear that gold will play as an important anchor in the reset.  There are several proposals for the Reset.  We will follow legendary Jim Sinclair’s method of Gold price tied to Federal Reserve balance sheet.  We will also consider second proposal in tying Gold price to the whole Federal Reserve Monetary base.

Below are the latest key monetary values:

If we do a simple calculation, we will obtain two Reset Gold prices:

  • Gold Reset 1 = A/C = $23,000/oz
  • Gold Reset 2 = B/C = $82,000/oz

However, if fiat currencies were to lose confidence due to further disasters, any high reset values are possible. The Reset will likely be done in a hurry for a very short duration.

Two Historical Charts

We present two charts to show the unusual tumultuous world we are living in.

Chart 1 – Historical High Value for Federal Reserve as % of GDP

The current value of 28% for the Federal Balance Sheet as percent of GDP is at historical high, exceeding the values of The Great Depression or The Spanish Flu of 1917!

The second chart showed the ratio of Gold Inventory to Fed’s Monetary M2 Base.  The sequence of rising values: 0.34 to 1.22 to 5.00 is shown in orange color.

Chart 2 – Historical High Ratios for Gold Inventory to Monetary M2 Base

The above two charts demonstrated how challenging we all are facing.

Increasing Global Gold Holdings

Some countries have already diversified from their large reserve holdings of US dollars via Treasury notes. In a sense, the process of the Monetary Reset has begun.

Chart 3 – Global Gold Holdings - 2019 vs 200

Gold Price Exploding Has Started

We repeat here an old chart in forecasting gold price done in 2016.  We believe this is still valid today, especially dominated by the talks of Convid-19 virus news.

Chart 4 – An Old Gold Price Forecast Chart in 2016

Summary

We estimated the following Reset Value for Gold Price before 2024:

  • Gold = $23,000/oz  (from Current $1700/oz)

The Monetary Reset will come quickly once people lose faith in fiat currencies.

Life is full of uncertainties.  Only the Almighty knows the future. In Him, we have hope.

We are not certified or qualified financial advisors.  Please consult your certified financial advisors for actual trading and investing.

*********

F.T. Dao is a private investor and recently left the corporate world for technical analysis of stock markets.  He holds a PhD degree in physics and has done technical analysis of the market on the side for many years.  He welcomes constructive discussion and can be reached at:  [email protected]  , [email protected]

The 1849 Gold Rush sped up California's admission to the Union as the 31st state in that year.

Gold Eagle twitter                Like Gold Eagle on Facebook