Gold at $7,000 article goes viral in Chinese media

Dan Collins
CMR

“Gold going to $7,000”, an article today in the Chinese media is
going viral and one of the most viewed articles in the financial
press. The article references American Jim Rickards and his concept
of comparing inflation-adjusted gold prices. Most Chinese economists
think that the price of gold should be approximately $ 2,400 / ounce,
instead of the current $ 1,235.

The article references estimates by Jim Rickard’s that if Central banks
had to to use gold to support its currency, then the price of gold will
go to $ 7,000/ oz. That only includes the printing that has been done
already, not the continuous printing of fiat currency that continues
unabated by Central banks all over the world.

Todays volatile financial markets are a warning that todays assets have
no actual real underpinning. There is no insurance. Gold stands as the
bulwark.

Although the U.S. Dollar is the reserve currency of the world today,
gold is the key to the new millennium of global trade balances.

The Dollar is losing its reserve status, holdings by Central Banks have
been going down for decades. Meanwhile, Chinese RMB holdings are
skyrocketing across the globe. The U.S. has been running trade deficits
for 30 years, when the Dollars start to go back onshore their will be a
global puke of the financial system and inflation levels the U.S. has not
seen in its entire history.

Are you ready?

panda-gold-25-jan-2011

18 comments

  1. Mauka says:

    The dollar down slide has already occurred petrodollar looks to be on life support. Obama screwed the Saudis. Attempts to start war with Russia have been thwarted by Vladimir Putin and it looks like the west is more desperate than ever. U.S. government increasingly out of control. Federal govt can’t even make common sense decisions like stopping flights from west African countries. mainstream media are criminal accomplices misinforming misreporting or just plain lying about Ebola. CDC well they’re non actions speak for themselves.

    • Tony says:

      Agree with everything except the “dollar slide”. The USD is still strong among the western crap fiat currencies.
      If the BRICS really want to remove the USD as reserve currency they better back their currencies with gold or a combination of hard assets, otherwise the Yuan, Real, Ruble, Rupee and Rand will continue to be second tier fiat garbage.
      The first nation to back their currency with gold wins.

  2. carefix says:

    I guess this means that Chinese demand is about to rise as the prices goes down next week.

    Economics has surprisingly counter-intuitive laws!

  3. HYMN says:

    I suspect carefix is right and demand for Gold in China will rise,if thats even possible demands already high. The Swiss vote in Nov. will be telling, Indias demand also. Holidays are coming up, it’s a great time for the price to be down,demand will spike.

  4. this is certainly worth a share

  5. Jeremy says:

    so where is this article, or is this propoganda for gold sellers.

  6. Lorenzo says:

    Protect yourself and your family…start now!

  7. Matt Lusk says:

    When there’s a GOLD RUSH, the first in wins. Switzerland may be a little late, especially if they cost average over five years.

  8. Well the writing is on the wall.. Create your own future in gold asap is what many are doing just now! Including me!

  9. Prime Values says:

    Russia started buying more Yuan recently, but the US dollar still remains strong. It will remain so until the petrodollar system still stands. And perhaps even after that.
    Gold can go to 7,000 or 50,000 $, no-one knows for sure. It depends on so many factors. The question is: how high will food prices go by then? What living standards will there be in the West by then?

  10. […] are making the case of gold going to $7,000 and predicting that although the U.S. Dollar is the reserve currency of the world today, gold is […]

  11. […] Gold is the key to the new millennium for making remedy to the outsized global trade imbalances. The USDollar is losing its reserve status, while holdings by Central Banks have been in sharp decline for decades. Meanwhile, Chinese RMB holdings around the world are growing very rapidly. The USGovt deficit is approaching $18 trillion, with half a $trillion in annual current account deficits annually. The US is in meltdown mode, and has been since the Lehman failure (killjob). All policy actions since 2008 have been desperate futile useless patchwork. Working a remedy to the US imbalances will force shocking adjustments and changes, including launch of a US-only domestic currency. When the USTreasury Bonds are discharged by foreign nations, the USDollar return voyage home will trigger a grand inflation import event. The pressure on the USFed will be overwhelming, as QE volume will multiply quickly in a manner not possible to conceal. The next phase will bring a $7000 gold price. See the China Money Report article (CLICK HERE). […]

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