Gold price15 Apr 2024 10:48
Pierre Lassonde of FNV has this theory that the Gold price should track the Dow in the long term...
In March 1980 the ratio bottomed out at 1.4 when gold peaked...
Its currently c16.50...
When gold peaks next time, could it hit $27,000/oz...i.e. A Dow Gold ratio of 1.4...
In fact Lassonde said gold could go to $30,000...
With some of the BRICS countries, esp China and Russia, buying gold with a view to creating a quasi gold backed currency, could this happen...? It would make those countries immensely rich...
China wants the rebminbi to be an alternate global currency to the dollar and in case you doubt the possibility of a gold backed currency, Chinese citizens also hold large amounts of gold, which could be pledged by the Chinese Govt.
So we may not have seen the craziest moves in Gold yet...
$5,000...$10,000...
And remember, SOLG has more gold than the Japanese government...(and the UK of course, thanks to the economically dumb Gordon Brown...)