Fact: Gold Will Hit $10,000
by David Tanner
The latest round of Quantitative Easing (money printing) by the Fed is just another nail in the coffin for the dollar. One cannot prop up an economy by destroying its currency, and the printing of another $600 billion with nothing to back it guarantees us that gold's future is bright and shiny!

History has proven that when paper money systems collapse, the participants always return to gold as a standard. When the president of the World Bank, Robert Zoellick recently suggested such a return, we can be sure that the end is near, or at least in sight.

Gold's safe haven credentials have been increased by World Bank president Robert Zoellick's suggestion that leading economies should consider readopting a modified global gold standard to guide currency movements. G20 economies should consider using gold as a reference point for market expectations of currency values, inflation and deflation as they reform the global monetary system, Zoellick wrote in an opinion article in the Financial Times. While textbooks may view gold as "old money," markets use it as an alternative monetary asset, Zoellick wrote. His comments come after the Federal Reserve's announced plans to buy $600 billion in Treasurys which has led to concerns about the dollar and the emergence of inflation and possibly stagflation. source

Now, considering the fact that there only exists about $5 trillion in gold, and about $4 trillion of that is already "in use" in the form of jewelry, investment, etc. then you can begin to understand how a return to the gold standard will drive its price skyward.

Again, consider the fact that we just printed a half a trillion dollars out of thin air, backed by nothing. When the world begins to return to gold-backed currency, a nation will have to hold gold in reserve before it can just "print" money on a whim. When that day comes, and every nation on earth is demanding gold for its reserves, there will be tens, possibly hundreds, of trillions of dollars chasing less than $1 trillion of available gold.

Supply and demand baby! Economics 101. Let the bidding wars begin!

On that day, gold will rise in price to ten, if not a hundred, times its current price. That is why I say gold $10,000 is guaranteed! I only say that because I don't want to sound to radical. LOL! If I said what I REALLY thought, the above headline would read "Fact: Gold Will Hit $100,000."