Jim Sinclair Is Predicting A $12,500/Oz. Gold Price In Order To Balance U.S. Foreign Debt!

[onassi]

@ithaclies why do we need hyperinflation to hit that price? in a hyperinflation, gold would be priced in the billions. when gold peaked in the 80s, there was no hyperinflation

[rocksiphone]

Hillary Clinton said she will be leaving to work for the World Bank, so you know something is going on.

[bustere07]

who else believes this $12.500/oz? LOL

[ACIMpsychology]

now he's predicting $2100 tops for 2012..;o(

[dynomike1964]

QE3 = Jobs act

[TumisHumis]

@kcrone1 September is always tough, that mixed with the margins going up accounts for the "Crash" I held mine right through it, and bought a bit at the trough :)

[ithaclies]

Considering the fact that 95% of the gold ever mined is still around, I can't see gold hitting $12,500 in 20 years unless the dollar goes into hyper-inflation on a German Deutsche Mark scale.

[acedagaiin]

& then What?

[buffett1000]

$2000 by end of 2011, easy.

[jnnycliff]

well, now it's stay above 1700 for a week. yaaaa

[Habeev07]

HEY YALL. only when silver is extinct will we even consider using copper in its industry applications. SILVER IS THE MOST USEFULL METAL ON EARTH. MOST RELECTIVE OF METALS AND MOST ELECTRICALLY AND THERMALLY CONDUCTIVE. Im stacking physical silver. Gold jumped $50 on the 2nd. Is it gonna set a new PM floor? Its unfolding dont get fooled buy people saying Pms are wastes of time and money. We'll need another currency this decade id say people with Pms will be the only ones w/MONEY...

[goldengyrl2010]

@Habeev07 Silver also has antimicrobial properties (that means it kills germs) so lots of new uses in the health care industry.

[crumcon]

i think i could buy a house if it hits that price.

[nld1960]

If the dollar has crashed,which it will, then $12,500 per oz is a steal.

The fiat dollar will crash, it has to and has been proven---mathematically.

In 1980 we did not have 18% unemployment and $80trillion in unfunded liabilities.You cannot compare that time to ours.In 1980 we were still producing and exporting unlike today.So if you sell your gold for $12500, I will buy all you have after the crash.

[RileyE104]

URGENT!! For those watching this who support Ron Paul's 2012 presidential campaign: There's going to be a HUGE fundraiser on July 19th -- this TUESDAY -- so please remember to take the time to donate at.... RonPaul2012(dot)com

[jobedied]

Government knows they can continue the wrong thing. When it finally collapses they will just pass legislation under war power and economic emergency type acts. It will then be illegal to trade in gold and silver . The government will give you paper money for gold and silver then triple the value soon after all confiscation is complete and keep the public in poverty. There is no chance this will not happen the military will be used to enforce this . You do not own the underwear on your ass.

[damoz89]

Wouldnt you be in a good position to be in Gold or silver.. beause when prices rise too much they will probably try and price control. meaning gold will be exchangeable for a large amount of dollars which will be able to buy a lot of goods as the prices have been frozen or set statically. Youd just need to act quickly

[MooseheadDrinker]

Where do you buy your gold?

stocks?

physical gold from stores?

[openuniverse2003]

Oohhh! Where 're me Lucky Charms?!?!? Some-bod-ee stole mee Lucky Charms! I'll kill 'em!!!

[kessmypersainass]

THAT WOULD BE THE DAY~~~!!!LOL

[randude1]

Translate all this to silver, please.

[TheBullionBull]

@randude1 Silver would not be monetized in this scenario, just the 8,133 tonnes of gold that the US government holds.

[azerovc]

@TheBullionBull IF it really holds it in the first place. There migt be just tonns of gold-plated tungsten bars...

[ytgv3fc7]

@randude1 ht tp://w w w.flickr.com/photos/61834461@N­02/

the graphs here let you translate to math on your own for silver prices vs gold

typically I'm seeing when gold & silver go up together it's more like 2x to 3x as they rise BUT as they have declined recently silver has been 5x to 7x down. That's log scale so if the log of all prices is used the gold price drop is 1x and the silver price multiple of LOGARITHMS is 5x. 10 to the power (number) = real price

[ytgv3fc7]

@randude1 my rough calculations take me to 1800 gold + 50 silver. The more oscillations that happen with the gold price to get it to 1800 the lower the silver price will be if these correlated up-moves and down-moves continue as-is.

[KarlBrkr]

I also have to agree. The united States along with Europe have boxed themselves into a corner where there dammed if they do and dammed if they don't print more money. The time to fix this debt problem was 5 years ago but no politician had the balls to spend only what income they had. They were just as bad as subprime borrowers.. Borrowing way more then they can afford with no income to ever repay. Buckle up for a wild ride in the next few years.

[KarlBrkr]

I also have to agree. The united States along with Europe have boxed themselves into a corner where there dammed if they do and dammed if they don't print more money. The time to fix this debt problem was 5 years ago but no politician had the balls to spend only what income they had. They were just as bad as subprime borrowers.. Borrowing way more then they can afford with no income to ever repay. Buckle of for a wild ride in the next few years.

[CrashMarket]

Well we will be in a great depression soon maybe so who really knows..

[Rockguitarnow]

The only problem with Peter Schiff is that he thinks the govt prints the currency, when in fact it is the privately owned federal reserve Corporation that prints the currency.

[Rockguitarnow]

I did extensive research into this a few years ago and came to the figure of $25,000.00 per oz of gold, that price only occurring if certain things are not done.

[mlong5151]

if there was so much gold in fort knox they would be taking beter care of the building. i no look so good last time i drove by it

[MrMaineack]

That only assumes there is 8000 tons of gold in ft. knox. When Ron Paul finally has his way and assay's what's really in there (Nothing) ,Then what will gold and silver be worth ?

[paulwood222]

So what happens to silver, if gold hits $12,500?

[ytgv3fc7]

@paulwood222 oil has been around 2x gold's move so while they are not perfectly correlated I would predict 12500/1540 = 8.117x price leading to 65.88x oil's price today in "dollars". More likely you'd see a top-ratio hit of gold vs oil and then it would be locked in while ALL tangible commodities scale up exponentially together, depending on the size of the market (velocity of printed money). Wish I could tell you the breaking point of one model to the next; I think war will do it.

[SlvrStkr2]

At 12500/oz gold think about having to use it in a SHTF scenario. It would be more convenient to have a bit of gold in small denominations. I have about 25 - 1 gram bars of gold. Dividing the 12500 by 31 has those babies worth 403 dollars. That is a more convenient purchasing power unit to have. The chance you will be ripped off when using a full ounce bar or round is high. Most people won't have 1100 dollars in change for you.

[ytgv3fc7]

@SlvrStkr2 damn right. Once I was able to get gold in smaller pieces I did for that reason; light & high value, small enough to trade for medium-sized things + some silver for the same purpose. I don't need silver for fiat paper gains when I can use leveraged silver manipulation to my benefit for it. Silver's heavy for value & I ask: how far can you run with that if there's a riot? Just how far? You better know the answer.

[AudioIndi]

Anything is possible but probably not in the way you are saying, or hoping. In the 1900s people made practically nothing per hour. The amount of currency used increases but the value you get doesn't increase. So, 12,500 gold will probably happen one day.

My question is if the US gov't issues a reverse split on its currency the only people who lose out will be the holders of foreign bonds, paper money, and assets purchase in higher amounts of cash in the rise up to the devaluation. We lose not

[ytgv3fc7]

@AudioIndi no one issues reverse splits on their currency. They can but it's never happened before.

[SlvrStkr2]

So, at 12500 gold and assuming a 15:1 gld slv ratio that is 833/ounce silver. Do you believe that silver can go that high? what about the industrial, medical, and technical applications? I'm not sure silver will be allowed to go that high due to the applications it has. What do you guys think? I own almost all silver so I hope my skeptcism is wrong.

[ytgv3fc7]

@SlvrStkr2 given the failures of more antibiotics, the use of silver to replace this failure might actually force the price up for silver no matter what the manipulators want.

[IronicallyVague]

Selling everything and going for Gold...

Things are going to get interesting soon...

[lextalionis2001]

I think the issue is that if gold is at 12K. then what is the price of gasoline or bread ?

[ytgv3fc7]

@lextalionis2001 the going rate in Zimbabwe was 0.1 g gold = 1 loaf bread

31.10345 grams gold = 1 troy oz. Hopefully I'm still OK with my math but I guess that's 38.58 USD = 1 loaf bread

[Chismoso7]

if Gold will go for 12500 then how much will be silver?

[wesleytarbuck]

@Chismoso7 divide by 15... maybe less.

[Chismoso7]

@wesleytarbuck That's about 833 times the amount of silver ounces I have today, that will make me very happy. Just stacking silver

[wesleytarbuck]

@Chismoso7 I think you need a small amount of gold, even if its only half an ounce, you absolutely must have some.

[Chismoso7]

@wesleytarbuck You know? you are not the first Person who tells me to have some gold not just silver. A number of people have told me that. Today I took half of my silver holdings and turned them into gold. It came down to 12 ounces of gold. Bob Chapman says that we should have 50-50. From now on I am going divide my residual income in half to buy both metals. Thanks Wesleytarbuck

[wesleytarbuck]

@Chismoso7 yeah hopefully you've made the right decision. nobody knows at this point, your guaranteed with gold to make money, silvers the real sleeper. i have 95% silver, i was going to buy some more gold, but i just put an offer on a rural block today with good soil etc (buy it outright). so im doing that instead of my gold, diversifying a bit.

[Chismoso7]

@wesleytarbuck But remember, that sleeper can wake up really angry and the price could rise and the ratio be 1/1 with gold. That would be something wild.

[ytgv3fc7]

@Chismoso7 nope - palladium does what silver can do in most cases so before we see gold = silver we'll see silver = palladium as both rise but are lower than gold. If we never get there, we won't get to silver = gold.

[Chismoso7]

@ytgv3fc7 Palladium=SIlver? That would be great news also. Today Palladium is roughly 758 and if I multiply by the number silver ounces I have; i will be a very happy bloke.

[ytgv3fc7]

@Chismoso7 indeed, many would be. They are not precisely the same - palladium is used making dilaudid (dihydromorphone) but I don't know if silver can be used in the same catalytic reaction. Even so, such an up-valuation would make many silver investors very happy.

[ytgv3fc7]

@wesleytarbuck no harm done there! good soil, good land, good price - go for it - but always be mindful of soil-production issues & the benefit to you vs the taxes that will be demanded on that land. Failure to pay tax in most nations = they take your land & you're broke

[wesleytarbuck]

@ytgv3fc7 good price, how does $3500 aussie sound haha

[barnone11967]

it might happen in a decade.... It will not happen while Pms are being Manipulated...

[bodyheals]

omg , what that will do to silver is amazing to think, the ratio will implode as the common man scatters to collect a pinch of old change.......imagine $40 to $12k silver...

industrial use will be irrelevant....and numismatic premiums will be an afterthought.

unless something wakes up the world to a new reality...

[ytgv3fc7]

@bodyheals industrial use can never be irrelevant. Our lives depend on silver's industrial use for everything. Unless you want to live like back in the 1800's for everything.

[bodyheals]

@ytgv3fc7 i just meant that regardless of industrial use...although i think if plasma TV's are $40kUSD nobody will be buying them...

[wesleytarbuck]

these figures are getting higher every day, hearing it on bloomberg too, everybody is bullish big time on gold. im not waiting around anymore im getting some more...

[bodyheals]

@wesleytarbuck i think silver got truncated from your post...

[wesleytarbuck]

@bodyheals already got plenty of that ....

[torkjoy1]

That math assumes the US holds 8,133.5 tons of gold....Does that means that if most of the gold in Fort Knox is gone and we hold only 1/10th of the supposed reserves gold will go to 125,000.00?

We sure will find out when the time comes

[bodyheals]

great math moneybags, assuming the gold is anywhere to be found....

[jimbobubbadj]

I especially liked your response near the end of the video.

[oak415]

HAhaha.. Cupcakes

[whittonmatt]

whats the point of comparing gold price to USD when the USD will be worthless??

[88MetalMania]

@whittonmatt Well said!

[MoneyBags73]

@whittonmatt There is nothing that says that the U.S. dollar has to be worthless for this to happen. Although, it's purchasing power will certainly be much lower at that point.

[bodyheals]

@MoneyBags73 if you are 40 inflation has already gone over 10X we are only talking about 8 times or so.

[wrathallll]

@MoneyBags73 Hi, good vid, sound quite likely to me. What time scale does he estimate though???

[intrigid]

@whittonmatt There will come a time when the USD is worthless, and an ounce of gold is worth infinite US dollars. At that point, it's a pointless measure. Until then, it's not. At that point, the price of food and gas and everything else we need will be measured in gold and silver, not in dollars.

[BMWg84]

@whittonmatt

It is relevant because most do not want to be in gold/silver forever. It is a means to afford what they really want in the future.. Like cash flow real estate.

[ytgv3fc7]

@whittonmatt you got it - price oil, silver, corn and anything of value (homes) in gold and watch those ratios. Don't be fooled by the rubber rulers known as paper currencies!

[schassse]

@whittonmatt I agree with you. Gold won't go up as much which is bad for the gold owners in the states. USA thinks they are alone on this planet. why do you think Europe created euros? Australia and Canada are the two major poles where resources are in abondance. Everybody wants to live in those countries by the way.

[closer71]

@whittonmatt

It won't be worthless, just worth LESS...a LOT less! In L.A. a gallon of gas is about $3.75/gal. Is it really so hard to imagine gas steadily climbing to $12 or $16 a gallon? People already pay that in most EU nations! This is the point: You'll always be able to convert an ounce of gold to whatever the paper currency of the day is and buy what you want without the huge price increase eroding your purchasing power. In other words, your living standard won't change.

[Ellelone]

@whittonmatt It is a point of reference. It's like saying, Andre is going to be taller than Goliath. Comparison.

[frontier1701]

12,500 gold??? Get ready for war!!!

[bluemeeni1658]

I am hoping it will go to half that price, but if it goes all the way then "yay" im a millionaire

[bodyheals]

@bluemeeni1658 and a million bucks will by you a bag of groceries...lol

[bluemeeni1658]

@bodyheals But I hope a big bag of groceries rather than a Zimbabwean bag purchased with fiat

[BYBB123]

Ole Jim has been making his rounds on all the networks. I hope he is right for all of us physical PM stackers.