From KWN:

Jim Rickards - Gold Pullback Meaningless, It’s Headed Higher

With the recent volatility in gold, silver and stocks, today King World News interviewed KWN Resident Expert Jim Rickards, Senior Managing Director at Tangent Capital Markets.

The following are some snippets from a KWN Gold Special with Jim Rickards. When asked about Paul Brodsky’s thoughts on gold and his $10,000 price target, Rickards responded,

“I agree completely with Paul on that. Again, I don’t want to put a stake in the ground around $10,000. My method has been to come up with a range, depending on different variables, but you end up in the same place.

Here’s the point, whether you end up with $5,000, $7,000, Paul is saying $10,000 and that’s a perfectly respectable estimate, I could (even) see it (gold) at higher levels, $15,000 or $20,000. In other words, the price level that I have given, that is in chapter eleven of the book, is based on today’s data.

Now if you change the data, if you print even more money than we’ve printed so far, you’ll get even higher prices. But the point is Paul’s estimate is right in the middle of the range that I’ve come up with, a perfectly good estimate. We all like our investments to go up, but if you buy gold at $1,700 and it goes to $1,500, buy more because it’s on its way to $2,000, $3,000, $4,000 and higher.

The fundamental story (for gold) is completely intact, in fact it’s getting stronger....

They (the Fed) started the crisis in 2007 with a balance sheet of about $800 billion. Today the balance sheet is up to about $3 trillion. They have printed $2.2 trillion of new money.

Now how much more can they do? If we have another crisis, what are they going to do starting at $3 trillion? Are they going to go to $5 trillion, $6 trillion, on a $50 million capital base? I mean that’s hyper-leverage and it won’t stand. So their printing press is going to run dry at some point.

But there’s another printing press waiting in the wings. The IMF has a printing press. I like to say the Fed can print dollars and the ECB can print euros, but the IMF can print SDR’s. They (the IMF) can print them and hand them out around the world and there’s no limitation on that.

So the next time there's a really serious phase of the crisis this is what you are going to see. Then what is the price of gold going to be? So tell me how much they are going to print and I will tell you where gold is going. But it's definitely going up, there's no question about that."