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Commodities (Precious Metals, Agriculture)

Staggering Stats About Silver Supply

By: Richard DoughtySLV, the silver Exchange-Traded Fund, could be viewed as the main alternate source of storage for silver, and it accounts for around 50% of world silver inventory. It seems that SLV has been raided heavily over the past seven weeks, Read more

Rob McEwen: Looking Ahead of the Curve

By: Karen RocheRob McEwen, a veteran of the resource industry, is CEO of US Gold Corporation and chairman of its board. He recently sat down with Roche for this exclusive, wide-ranging interview. While hoping to avoid the “darkest hour”, Read more

Gold May Decline 50% Before the World Cup is Over

(And the World Cup May be Won by a Herd of Wild Burundi Elephants)By: Eric JanszenA recent Morgan Stanley analysis predicts that gold will plunge 70%. Read more

Gold Reclaims its Currency Status as the Global System Unravels

By: Ambrose Evans-PritchardThe ECB has revealed that its systemic risk indicator surged to an all-time high on May 7, during the Eurozone money-market meltdown. “The probability of a simultaneous default of two or more euro-area large and complex banking groups rose sharply,” it said. Read more

Don Coxe Dissects Gold

By: Tyler DurdenWhat do you do if you can no longer believe in real estate, bank deposits, the dollar, the yen or the euro? What can you believe in? Gold. So old it’s new again, the yellow metal can’t be synthesized and acts as a store of value for future generations. Read more

So Little Gold

By: Arnold BockThere isn’t much gold around, and this is a key issue for those who invest in precious metals. Bock contends that, given the scarcity of gold and silver bullion supply, prices will go parabolic once governments, institutional and private investors realize supply is alarmingly insignificant. Read more

Will Economic Austerity Kill Gold’s Bull Market?

By: Dominic FrisbyOn 21 June gold broke out to new all-time highs above $1,260 per ounce, but then made a dramatic correction to around $1,190. That's quite a correction and it concerned a lot of people, so Frisby addresses whether this is anything more than a healthy pull-back. Read more

Irrational Gold Selling

The Mogambo GuruThe shrewd, funny and irreverent Mogambo was surprised by gold’s recent dramatic correction, since it indicated gold sales even in the face of the Fed’s dollar destruction through excessive money printing. “Apparently, Read more

Gold is Back as Money

By: Julian PhillipsIn its 2010 annual report, the Bank for International Settlements (BIS) said that “gold, which the bank held in connection with gold swap operations, under which the bank exchanges currencies for physical gold, stands at 8,160.1 million in special drawing rights, Read more

So You Think You Own Gold?

By: Erik TownsendThe principal contention of this article is that most investors who think they own gold or silver bullion really don’t. Most precious metals investments – including many touted as physical – are nothing more than paper promises. Read more

Gold May Decline 50% Before the World Cup is Over

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(And the World Cup May be Won by a Herd of Wild Burundi Elephants)
By: Eric Janszen
A recent Morgan Stanley analysis predicts that gold will plunge 70%.
That is unlikely, writes Janszen, unless a credible proposal to pay down US government debt and reduce contingent liabilities is not only constructed, but also approved by dozens of special interest groups. The recent performance of the US political system at the relatively simple task of getting more health care to Americans at a lower cost is not encouraging.
Janszen discusses gold as a currency hedge; historical amnesia; the central banking paradox; central bank (and IMF) gold reserves of over 100 tonnes each; why gold cannot be “just a commodity” if it is the only metal owned by central banks; China and Russia; who holds gold; and the countdown to a crisis.  He loses no sleep worrying about gold prices plunging. Instead, he worries about the disastrous financial condition of US households and the US government, and the lack of political will to address them, which threaten the very foundation of the global money system.
This is the reason for gold’s relentless rise. The problems are structural and endemic. Perhaps war is the only thing capable of unseating the special interests that perpetuate them. Gold prices do not float on a sea of liquidity; they float on a sea of dangerous fallacies: that asset bubbles don’t cause lasting damage to economies; that the US can continue to borrow to finance its fiscal deficit; the invulnerability of the dollar as a reserve currency. Janszen won’t bet against global central banks, and they are betting on gold. Soon, everyone will catch on.