Please see the post below - with expectations of a short downturn of Gold - manipulated by the commercial shorts on Gold.
Another article today - mentions the dollar will have controlled inflation and the real price of what Gold should be (shadow) will eventually be at $6000.00 per ounce.
Link to article in PDF form: http://www.gata.org/files/QBAssetManagement-07-2009.pdf
As the SGP implies, an ounce of gold would fetch almost $6,000 if we lived in a world characterized by disciplined money issuance. In effect, people and governments around the world would have been exchanging their Federal Reserve Notes for gold to the point that it would take 6000 bills to buy an ounce. The Shadow Gold Price solves for the price of an ounce of gold if the US dollar were still pegged to gold and its rise reflects the inflation of the Monetary Base. (Gold used to actually be the US Monetary Base prior to 1971, when the US and other governments abandoned the Bretton Woods Agreement that imposed monetary discipline on their money printing.)
Obviously this appears to be a crazy gold price within the context of the $900-plus price at which gold has been trading recently on global exchanges (though we do remember its rapid move from $35 to $880 the last time around). We are under no illusions that the price of Comex gold will rise to track what we see as its intrinsic value (not because it shouldn’t, but because we expect external market forces with great interests in protecting the sovereignty of fiat currencies to step in before that occurs, see “Potential Endgame – A Managed USD Devaluation” below).
There is a lot more in the article, including charts. I suggest everyone read this, who is interested in gold.
Position yourself for the coming huge economic changes here in the U.S. and abroad. Make sure you have covered yourself, in preparations in all ways.
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