Why Gold Will Reach $10,000 An Ounce
I have quite a few customers that I convinced to buy gold back when it was selling around $250 an ounce. Now that it is up 6 times that amount, they sometimes ask me if they should be selling now while the price is "high." My response is always the same: "Call me when gold hits $10,000 an ounce and then we can talk about selling." Of course, their response is always the same as well: "There's no way gold is going to hit $10,000 an ounce," at which point I have to re-educate them on why that event is a certainty. Here's the reasons why:

1. Gold is not immune to the economic laws of supply and demand. When more people want anything that has a fixed supply, the price rises. And gold certainly has a fixed supply. It cannot be created out of thin air as can paper money.

2. The price of gold has risen six-fold over the last 10 years, and still, nobody in the US owns gold. Possibly, one out of a hundred American investors have purchased gold.

3. The country is broke beyond repair. Even IF politicians could fix it, they wouldn't. Politicians don't go to Washington to fix the system, but to be enriched by it! They have ZERO interest in stopping the gravy train from the American public to the bankers, because it is the financial backing of the bankers that gives them the financial backing to get elected in the first place. Not only are they not interested in fixing the system, they will stand in the way of anyone, like a Ron Paul, who tries to fix it!

4. America's financial system is in a slow-motion, managed collapse, where the dollar will ultimately become so worthless that it will be replaced by some commodity-backed currency. Our trading partners (the rest of the world) will demand this. The Chinese, Arab, Indian and Russian appetites for paper dollars that are backed by nothing but a promise to repay, from a country that has no hope of every repaying, no longer exists! Of course, the average American still does not realize this because he gets his news from CNBC, NBC, CBS, ABC, CNN and FOX which are nothing more than propaganda mouth-peices for the banksters. Regarding this commodity-backed currency, gold is the only commodity that fits the bill, hence demand for gold will continue to rise as America is forced by the rest of the world to place some sort of gold-backing to our currency.

5. Eventually, the American public will figure out what is going on and stampede into gold. (Remember #1 above, when demand rises so do prices.) Of course, by then, gold will be much higher in price than it is currently, and it will be harder (if not impossible) to buy because of lack of supply, as gold cannot be simply created out of thin air, as can dollars.

The late arriving public will repeat their mistakes of the dot-com bust, day trading bust and the real estate bust. Their arrival will drive the price of gold through the roof. They will arrive at the party too late after all of the real opportunity has been missed. In the 90's we saw people quitting their jobs to become day traders. In the last decade we saw everyone quitting their jobs to flip houses. Where are they now? The public is always the last to know.

6. Gold has risen six-fold when only one or two out of a hundred people own gold. Do you think gold will only rise six-fold when those other 99 climb on the gold bandwagon? Let me ask this question another way: If the increased demand from only 1 out of 100 people buying gold has pushed the price up six-fold, how far do you think the price will be pushed up when the other 99 decide to climb aboard the gold bandwagon?

At its current price of $1750 an ounce, for gold to merely rise another six-fold puts the price at $10,500 an ounce. It's simple supply and demand..... Econ 101. It's not rocket science!

Of course, I have never believed gold will ONLY rise to $10,000 an ounce. A ten-fold rise in the price from here puts gold at $17,500 an ounce, and a twenty-fold rise from here puts it at $35,000 an ounce, which is where I personally believe the MINIMUM upside target for the gold price should be.

In the interim, remember this: Day to day, week to week and month to month, the markets are manipulated by the powers-that-be to hold down the price of gold because it is the enemy to their paper money system of legalized theft. But long term, supply and demand will win out, as it always does.

Investing isn't really that hard or complicated. One only needs to watch what the masses are doing and then do the opposite. Right now, everyone is SELLING their gold jewelery. Every other commercial on TV is about selling your gold. The masses are not BUYING gold, and the masses are ALWAYS wrong, because they are conditioned to be so.

That is about to change, and when it does, we will blow by $10,000 like it doesn't exist!