Gold Bullion Bars
Wednesday, January 9, 2013
QB Asset Management projects $3,400 gold by 2015 In a recent investor letter, QB Asset Management explains how an inflationary reset button could slash the real value of the rapidly growing U.S. national debt: "Using the U.S. as an example, the Fed would purchase Treasury's gold at a large and specified premium to its current spot valuation. The higher the price, the more base money would be created and the more public debt would be extinguished. An eight-tenfold increase in the gold price via this mechanism would fully reserve all existing U.S. dollar-denominated bank deposits (a full deleveraging of the banking system)." QB maintains a chart of the shadow gold price (SGP). The SGP uses the Bretton Woods calculation for determining the exchange rate linking gold to the U.S. dollar. The calculation is base money divided by U.S. official gold holdings. Here is QB's latest chart. It includes projections of the base money supply through June 2015, assuming the Fed prints $85 billion per month. The SGP soars to $20,000 per ounce. ... If the ratio between the SGP and actual gold prices stays constant, gold could be $3,400 per ounce by 2015!
More information can be found online at http://www.goldbullionadvisors.com
Posted by Richard Davey at 11:48 AM
Email ThisBlogThis!Share to TwitterShare to Facebook
Post a Comment
Newer Post Older Post Home Subscribe to: Post Comments (Atom)
▼ 2013 (4) • ▼ January (4)
• • • • •
Gold demand to rise as the world enters multi-curr... QB Asset Management projects $3,400 gold by 2015 Gold price to "explode" when Japanese pension fund... Gold hitting $2,000 this year is "a high probabili...
► 2012 (128) • ► December (10) • ► November (21) • ► October (71) • ► September (26)
Richard Davey Consultants to the banking industry to supply gold bullion http://www.goldbullionadvisors.com View my complete profile
Awesome Inc. template. Powered by Blogger.