On December 10, 2021 I published a post on PublishOx titled, 'Gold would have to reach $112,000 to cancel U.S. debt' where I made some simple calculating to crunch a total for an ounce of gold to match the USA's national debt. That post was written when the debt was still at $29 trillion and was soon to hit $30 trillion.
At time of writing, the debt, according to usdebtclock.org is now less than $57 billion shy of hitting $37 trillion. So, in just 3 and a half years, the national debt has risen by a whopping $7 trillion, the sharpest increase in currency creation ever! Well done, Joe Biden. Well done...
Youtube vlogger 'Bald Guy Money' who boasts over 70,000 subscribers, published a video in the last week where he too talks about the price of gold relative to the national debt. He suggests the price of an ounce of gold, relative to the amount of gold the U.S. supposedly has (over 8,000 tonnes) would have to now reach over $141,000 to match the current debt levels.
In case you haven't noticed, gold has been on fire this year, climbing $1,000 per ounce in the last 12 months! I don't need to parrot all the reasons why gold is climbing as fast as it is but the one main reason is... debt!
Now, there BBB... the so-called big beautiful bill that snuck in an extra $5 trillion in debt. If this bill does pass, expect much higher gold prices. It should be seen as, 'inevitable'. The debt based central banking system appears to be in real, serious trouble because the only way they can move forward is with more debt, to pay off more debt. I know, it makes no sense, which is why they are doomed.
We can also see it in the silver price, which incidentally is now at 13 year highs. Gold says a lot but silver says a lot more. News sites are finally starting to pay attention to silver's structural deficit. There's simply not enough silver to supply the so-called green movement. I wrote about this in a previous post titled, 'Modern technology's unprecedented silver demand' and again here when I warned of a 237 million ounce deficit. Since then, we've seen multi-year silver deficits. This surely has something to do with silver's present rally to $36.
The precious metals group is waking up. Both gold and silver have sprung out the gate. A massive revaluation, I believe has already started. You will never see gold at $2,000 again. It was expensive for most then but now, at $3,300 is out of reach for the average person. Silver is your best bet within the precious metals group. Adjusting to inflation, to match its $50 1980 high, silver would have to be well over $150 per ounce. That alone shows silver is way, way undervalued.
So yea, $141,000 gold is not far fetched at all. Just look at Zimbabwe over the last 20 years or the devastating hyperinflation of Weimar Germany in the early 1920's (almost exactly 100 years ago) where an ounce of gold shot up to an astounding 57 trillion marks in late 1923. In 1919, a German citizen could have bought an ounce of gold for just 170 marks. The few that did, did well. Read more on this amazing story here at my blog on morning-java.com.
All currencies throughout history, without question have eventually gone to zero against gold. Why should it be any different this time around? That's because currencies are nothing more than pieces of paper (or polymers) with various numbers printed on it to give the illusion of value.
The American dollar is in crisis mode as well as the Canadian dollar, the British pound, the Chinese Yuan and definitely the Japanese Yen. With a debt to GDP ratio surpassing 250%, watch for Japan to be a likely catalyst to push gold prices higher (and soon me thinks). In fact, all the world's currencies are in big, fat trouble.
Do you see gold (and silver) rising against the dollar as I see it? Do you think I'm crazy for thinking an ounce of gold could go well over $100,000 per ounce? Please leave your comments below. Let me know what you think. Cheers!
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