Gold’s Ultimate Price? Think Niagara Falls Through a Garden Hose!

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hoseGold is off to a 21% + gain so far in 2016. So, those believing that the U.S. dollar is the ultimate monetary unit of account and store of value naturally think gold is way too expensive and thus due to decline. Doug Casey, who understands the lunacy of government-mandated money backed by debt rather than gold or silver, knows better. When asked about the ultimate price of gold denominated in dollars, Doug will tell you an ounce of gold will ultimately cost you an INFINITE number of dollars! To hammer that idea home, he has likened the demand to trade intrinsically worthless dollars for gold to that of trying to force the volume of water flowing over Niagara Falls thorough a garden hose. To put that into perspective, more than 6 million cubic ft. of water flows over the crest line of the Niagara Falls every minute! How fast do you think people will seek to exchange their intrinsically worthless dollars for gold (or silver) as the masses begin to discover the truth?

The late Ian McAvity once said, “A barrel of oil is a barrel of oil. An ounce of gold is an ounce of gold. What is a dollar?” The answer to that question is that the dollar is NOTHING other than a figment of our imagination. For believing the dollar falsehood, we have to thank the servants of “the Father of Lies” at the Federal Reserve Bank. Those foxes with PhD’s from Harvard, Princeton, and Yale are cleverer at mental deceit than Houdini ever was at deception in the physical world. True, the dollar still has a bid under it, thanks to America’s military used to force countries to require dollars for oil sales.  But now that oil-producing nations like Russia, Iran, and a growing number of others are shunning the dollar in favor of other currencies and gold, and as the Shanghai Gold Exchange is forcing the gold price-manipulating LBMA out of business, discovery of the big dollar lie may not be far into the future. The handwriting is on the wall, thanks to the likes of GATA, David Jensen, Paul Mylchreest, F. William Engdahl, and others. I would especially recommend you read the latest work of Paul Mylchreest that shows how the lies and scams of major bullion players on the LBMA are about to be exposed when the players on Wall Street and throughout the world understand that when they buy an ETF like GLD, they are not actually buying gold but rather a piece of paper that is not backed by gold itself but simply is tradable only for more paper (or digital) dollars! Once investors begin to understand that the trillions upon trillions of fake money called dollars that they used to buy virtual gold like GLD is only paper and not gold, Doug Casey’s analogy of trying to force Niagara through a garden hose may not be as crazy and farfetched as it seems. So while some technical analysts may tell you that the price of gold needs to “back and fill,” what they are not taking into account is that when the truth about our monetary system becomes known, the dollar they use as a unit of account on their charts is going to ZERO. And with that, the price of gold as measured in a worthless unit of account is headed to infinity. That most certainly is not something anyone should look forward to, because when that day arrives, all manner of chaotic hell is likely to explode upon the world scene. For now, even far less apocalyptic views give reason to believe we are heading for a gold price of upward to $1,450 before it meets some serious resistance. And with that I’m expecting that the rise in our gold shares, which are up triple digits on average so far this year, is just the beginning. There may well be some setbacks, but the fundamentals are simple. Like all fiat currencies in history, the dollar is heading toward ZERO while gold will retain its value. Need I say more about the so-called lunacy of Doug Casey’s notion of comparing the future price of gold to Niagara Falls forced through a garden hose? RECOMMENDATION: Read the article by Paul Mylchreest to learn why the gold price may be nearing a massive breakout that reveals the big dollar lie here: http://www.gata.org/files/MylchreestReport-05-2016.pdf.

About Jay Taylor

Jay Taylor is editor of J Taylor's Gold, Energy & Tech Stocks newsletter. His interest in the role gold has played in U.S. monetary history led him to research gold and into analyzing and investing in junior gold shares. Currently he also hosts his own one-hour weekly radio show Turning Hard Times Into Good Times,” which features high profile guests who discuss leading economic issues of our day. The show also discusses investment opportunities primarily in the precious metals mining sector. He has been a guest on CNBC, Fox, Bloomberg and BNN and many mining conferences.