If Jim's formula for predicting a target price for gold is successful as it was in the late 70's, then we will eventually see +$10,000 gold which equates into +$200 silver even with a relatively modest 50:1 gold/silver ratio.

BTW, his formula is Foreign Federal Debt ($3.125 trillion) / Official US Gold Holdings (260 million oz) = $12,000/oz

Dear CIGAs,

Gold’s job is, and will always attempt to during periods of monetary stress, balance the INTERNATIONAL Balance Sheet of the USA.

Putting the Numbers Into The Equation:

$3,125,000,000,000 / 260,272,000 ounces of gold = $12,006.67 per ounce of gold.

In the early 70s I put an advertisement in Barrons predicting gold would rise to $900. When it got near that level, I left for 21 years.

I reappeared officially when Forbes published an article on my career December 10th of 2001. Click here to view the Forbes article…

The mathematics behind the $900 number came from the following equation plus reasonable trend estimates on the number going into the future.

You will note the number today fits in nicely with Alf’s high levels.

• Major ONE up from $256 to $1,015 (actually 4 times the $255 low);
• Major TWO down from $1015 to $699, say $700 (a decline of 31%);
• Major THREE up from $700 to $3,500 (a Fibonacci 5 times the $500 low);
• Major FOUR down from $3,500 to $2,500 (a 29% decline);
• Major FIVE up from $2,500 to $10,000 (also a 4 fold increase, same as ONE)

I would not have revealed this unless a recognized expert who has a 100% track record such as Alf Fields predicted it first.

I did not wish to yell "fire in the theatre."

It certainly make the Comex manipulators, who could easily be stopped, look long-term silly today.

Jim