And where might the price of gold go?

The following is a excerpt from James Turk:

The Federal Reserve is following the footsteps of the central bank in Weimar Germany. It is the same path taken by many central banks that have issued countless fiat currencies based on nothing but government promises. It is the path to the fiat currency graveyard, and the once almighty US dollar – which long ago used to be “as good as gold”, just like the Reichsmark once held that same exalted title – is knocking at the graveyard’s gate.

This insight about the importance of gold and shortcomings of fiat currency is not suprising, nor is it new. Here is what Rep. Howard Buffett, father of Wall Street legend Warren Buffett, had to say on May 4, 1948. “Our finances will never be brought into order until Congress is compelled to do so. Making our money redeemable in gold will create this compulsion.”

Absent that compulsion, the dollar is going the way of the Reichsmark. Don’t count on the US government to do the right thing and make the dollar redeemable into gold. Instead, take those steps necessary to protect yourself and your family to prepare for the dollar’s inflationary collapse. Buy gold. Buy silver. Avoid the US dollar.

Solid, long-time gold producers are another option, supported by historical trends.

As Jim Willie says, "I love ratios!"

At 17, the gold/oil ratio moves gold at today's oil price to approx $2250, pushing jk producers to the outer orbit where their eventual escape to the "moon" is facilitated!

Today the ratio is under 7, very near its historical low.

Movement to the "mean" when it starts will be instantaneous (weeks) and very difficult to catch in terms of investment in gold or gold related equities. (in 1980 gold bullion mover up 40% the last two weeks on its march to its altime high!)

In 1983 Corona moved $8.00 on the strenght of hole #76, 0.6 ozs/ ton over 10 ft! 35 years later SAN moves $0.30 on 2.5 ozs/ton over 20 ft.

Strange!!

RUF