Feb. 21 at 6:27 PM
$GLD Gdxy
$COPX $SLV
For the fun of it, I thought I would throw in a question to AI.
What would be the price of gold today, given the US increasing debt, if they ever tried to go back as before 1971 and peg the u s dollar to gold. ?
If they only backed the monetary base, they would need for gold to be between
$25,000 to
$30,000 per ounce.
If they were to back the broader money supply (M2) gold would have to be between
$75,000 and
$80,000 an ounce
If they were to back one hundred percent of the u s debt today ( that would never happen because countries usually only back 10 to 40 %) GOLD would have to be
$135,000 an oz.
10% gold based on present debt would have to be
$13,400 an oz
40% (4 x that)
They have little choice when it comes to taming inflation and stop the printing press.
I guess they could always devalue the dollar. or default on the debt(real market crash) or go to war and start anew currency like they did in 1932.
Gold, silver platinum, palladium copper
