|“You own gold, don’t you, Alan?”|
“Of course, I’m not stupid.”
Rickards then goes on and states that gold should move to 10,000 at a minimum to prevent world deflation and perhaps even to 50,000 to keep pace with current money supply which I believe will actually explode to try and stave off deflation and stagnation. They will not have a choice with the money supply and therein lies the next dollar move as the dollar tries to reflate THE WORLD. It will be the final charge of the dollar before they pull the plug on it. Its a suicide run. After all WHY would you go to ANOTHER currency with the current reserve currency near it recent high. You've got plenty of room to print and I believe they will. The market and the dollar will move down together as we collapse. Gold and silver will inversely correlate and I think Rickards finally sees how this game will play out.
Look at the recent moves in the miners. They are in a consolidation on the daily and any pull backs in many of the juniors is short lived. The PAPER gold and silver trade in the miners is TERRIBLY risky but for much of the big boyz, its the ONLY alternative they have to allocate big money to gold and silver. BE AWARE of that fact. gl