If the Dollar Were Backed by Gold An Ounce Would be Just Under $10,000

Monday, July 04, 2011

The seasonal summer doldrums may still be underway, but as only CDS spreads and uncertainties are rallying these days, Erste Group's gold analyst Ronald Stöferle could well hit the black spot, forecasting a gold price of $2,000/oz by the end of 2011.
Sorry for not delivering a summary, but this gold standard setting 47-page report is a full must-read for all gold investors and especially all those who still have doubts about a golden future for the oldest universally accepted currency in the world.
Only so much for a teaser: If the US money stock were to be backed by gold again, one ounce would cover 9,942 single dollar notes. Now go read the rest for a multitude of research gems.

Click here to go to the The Prudent Investor homepage for more interesting posts.


Anonymous said...

You gold clowns!! Somebody comes up with a "report" that gold will go to "XXX" and you jump on it like white on bread.

Shut the f up and let the market decide!!

05 July, 2011 22:27
GeoffG said...

"Gold is going to $10,000."
"Gold is going to $5,000."
"Gold is about to crash."
"The government is going to confiscate gold on July 15th."

All different "tipsters" airing their views/rumours/opinions/recommendations. No wonder retail investors can never make money. Let's face it: it's a complete lottery out there - no-one has a clue where gold is going. "You pays yer money and you takes your chance."

06 July, 2011 01:43
Ravijit Singh said...

I agree totally with Geoff.
All the investment experts make your head spin with the promise of dizzying returns but if it does not go the way they prophesized , they have a hundred excuses ready.
SO invest after knowing the ground realitiesas much as you can understand .
Whether we lose or gain , the brokers always make money . So it suits them both ways.

06 July, 2011 06:29
Anonymous said...

End of April.. market going to crash, then beginning of May the market going to crash...next end of June market going to crash, especially silver ..follow by market will crash in July.. Yesterday saw a surge in gold and silver price. What is happening. Some speculators making all these speculations and made money out of them

06 July, 2011 11:39
tdh said...

Speculations on end of April.. May and end of June and then beginning of July market going to crash. What is happening here. Some bodies are making big money out of all these BS!

06 July, 2011 11:41
Anonymous said...

An economic crash is enevitable! When it will happen no one knows. Even the doomsday sayers make open ended predictions so they are right either way! With corrupt self serving, over spenting governments, printing fiat currencies, funding entitlement programs, and endless wars or conflicts this all needs to end!!!!! It all needs to fail! our founding fathers must be spinning in their graves!!!!!

06 July, 2011 13:01

Hey Anonymous, Aren't you one of the guys on Jersey Shore?

06 July, 2011 16:56
DeeganPeter said...

The only reason to buy gold is to have it as insurance that the dollar will not fail. If the politicans don't get their act together, that is a very real possibility.

Even if they wait until the last moment, the rest of the world may just lose confidence in the dollar and look for a better alternative.

06 July, 2011 19:33
Geoff (again) said...

"Marc Faber: Gold and silver could be crushed this summer."

Pigs might fly. The world could end next week. The stockmarket is going to new highs by the end of this year. The upcoming crash will take us to new lows.

Market commenters have as much believability & integrity as our politicians i.e. NONE.

07 July, 2011 16:36
Michael Ellis said...

I have zero confidence in the long term stability of the dollar. The levels of public and private debt in the united states make any kind of long-term stability unlikely. When the dollar dies something will replace it. I am wagering it will be gold and silver. I am not investing in gold and silver to make a KILLING when it goes to $10,000+ an ounce, which is a real possibility, I am buying gold and silver because they may be the only forms of currency people will trust in the near future. That having been said I am also 'investing' in other things in preparation for Dollar Death such as hydroponics, solar and wind energy, and other form of self sufficiency. These activities may also yield commodities that will be worth their weight in gold, quite literally.

08 July, 2011 08:59
Anonymous said...

Buying physical gold and silver is an insurance policy. You pay for car and term life insurance and never hope to cash in on them. At least you can redeem your Au/Ag in the future. If you have not included physical gold/silver in your portfolio, don't cry foul when the market crashes or inflation blows its lid off. I am not a know it all, but the current world situation has to worry discerning minds. Retired Vet.

11 July, 2011 04:24
Mace said...

Fundamentals are pretty clear. Paper currency are falling in value. Process has accelerated since demise of gold standard in 1971. Greeks, Romans, Holy Roman Empire, Ottomans,Brits, Spain,Russia, Austro-Hungarian Empire -- all gold silver standard. The Euro is unraveling. The $USD is down 90% since 1917. Gold buys as much oil now as in 1950. Purchase 10 American Eagles. You will have 6 month emergency fund.

14 July, 2011 03:47
Anonymous said...

The Sky is Falling

Chicken Little

18 July, 2011 04:30
Unknown said...

this is such a no brainer...even a government official addmitted it is a ponzi scheme....there is no money left. No money to pay the debt service....it is so high now it is done...they connot drop interest rates ...nore can they increase interest rates....result....gold and silver to the moon......god bless!!!!

19 July, 2011 02:56

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