Perfect Storm: Top Minds Pricing Gold between $20,000 and $60,000 per oz. Gold's Slingshots, Silver Follows.

Don't Listen to Me. Do Listen to Luke Gromen, Jim Rickards, Judy Shelton or Mike Maloney

Luke Gromen

Luke Gromen, a financial analyst, has suggested that gold could reach $20,000 per ounce if the Federal Reserve decides to back U.S. Treasuries with gold. This idea is rooted in the context of the U.S. potentially revaluing gold to stabilize its financial system.

Gromen's assertion is based on the notion that by backing Treasuries with gold, the U.S. could address issues related to debt and currency stability, potentially leading to a significant increase in gold's value.

The concept of revaluing gold involves the U.S. government setting a new, higher price for gold, which would increase the value of gold reserves and potentially strengthen the balance sheet of the Federal Reserve. This move could be seen as a way to restore confidence in the U.S. dollar and manage the national debt more effectively.

By backing Treasuries with gold, the Federal Reserve would essentially be tying the value of U.S. debt instruments to a tangible asset, which could enhance their appeal to investors concerned about inflation and currency devaluation.

Gromen's theory also considers the historical context, where gold has been used as a monetary standard, and its potential role in modern financial systems as a hedge against economic instability. The idea of a gold-backed Treasury could be seen as a return to a modified gold standard, which could help stabilize the economy by providing a more secure foundation for the currency.

This perspective is part of a broader discussion on how the U.S. might navigate its current economic challenges, including high levels of debt and inflationary pressures. While the revaluation of gold and its impact on the economy is speculative, it underscores the ongoing debate about the role of gold in the global financial system and its potential as a tool for economic stabilization

Judy Shelton: Trump’s Pick as Federal Reserve Chair

Judy Shelton, a proponent of the gold standard, has expressed views that align with the idea of using gold to stabilize the U.S. monetary system, similar to Luke Gromen's suggestion of backing U.S. Treasuries with gold. Shelton argues that a return to the gold standard could provide stability and prevent currency manipulation by governments, thus supporting free trade principles.

She believes that pegging the dollar to gold would offer a reliable store of value and serve as a safeguard against inflation, which is a concern in the current economic climate.

Shelton's advocacy for the gold standard is rooted in the belief that it could impose fiscal discipline by limiting the government's ability to issue new money, thereby controlling inflation and maintaining economic stability.

This perspective is controversial among mainstream economists, who argue that the complexity of the modern economy makes a return to the gold standard impractical and potentially harmful. Critics point out that the gold standard could restrict the Federal Reserve's ability to respond to economic crises, as it would tie monetary policy to gold prices, which are influenced by external factors like mining output.

Despite these criticisms, Shelton maintains that a gold-backed system could enhance trust in the currency by anchoring it to a finite resource, thereby promoting economic harmony and stability

Her views, while considered fringe by some, highlight a debate about the role of gold in modern monetary policy and its potential to address issues of debt and currency devaluation. This aligns with Gromen's idea of revaluing gold to strengthen the U.S. financial system, suggesting that both see gold as a tool for economic stabilization in uncertain times

Jim Rickards

Jim Rickards arrives at his prediction of $27,000 per ounce for gold through a detailed analysis based on the potential return to a gold standard.

His calculation involves the U.S. M1 money supply and a historical gold backing ratio. Rickards assumes a scenario where central banks might be forced to revert to a gold-backed system due to a collapse in confidence in fiat currencies, driven by excessive money creation, competition from cryptocurrencies, or a financial crisis.

Rickards uses the U.S. M1 money supply, which is approximately $17.9 trillion, as the basis for his calculation. He applies a 40% gold backing ratio, a standard historically used by the Federal Reserve. This implies that $7.2 trillion worth of gold would be needed to back the money supply. Given that the U.S. holds 261.5 million troy ounces of gold, Rickards calculates the price of gold as follows:

This price reflects a significant increase from current levels and is based on the assumption that such a monetary system could be implemented. Rickards emphasizes that this is not merely speculative but a result of rigorous analysis, considering historical precedents and current economic indicators.

He also discusses the implications for investors, advising them to invest in gold now to capitalize on potential future gains.

Rickards highlights the importance of gold as a hedge against inflation and economic uncertainty, suggesting that physical gold, gold stocks, or gold IRAs could be strategic investments

History teaches us

• If we were to have a repeat of the 1970s

• Moon Shot gold by 24 X

• $2,500 x 24 Equals?

• That would price Gold at $60,000.

• Gold today backs the dollar by only 9% marked to market.

• In 1971, it was 12%.

• Meaning, gold is lower now than it was in 1971 by this metric.

Price Implications for Silver

Luke Gromen's projection:

• Silver: 1700% growth = 18x (correct)

• Gold: 742% growth = 8.42x (rounded to 8.4x, correct)

Jon Forrest Little's projection:

• Silver: 2151% growth = 22.51x (rounded to 22.5x, correct)

• Gold: 952% growth = 10.52x (rounded to 10.5x, correct)

Jim Rickards' projection:

• Silver: 2330% growth = 24.3x (correct)

• Gold: 1037% growth = 11.37x (rounded to 11.4x, correct)

It's important to note that these are speculative predictions and not current market prices. The actual relationship between gold and silver prices can vary significantly based on various economic factors and market conditions.

Today’s Featured Company:

Similarities in Farming and Mining.
Small Scale
Artisanal Approach

Stay with me, this is a comparison (an artisan model for farming and similarities within Artisanal Mining in Bolivia)

Dynamic Coffee Roasters, a small-batch coffee roasting company based in Carnegie, Pennsylvania, is making a significant impact on the lives of coffee farmers in Honduras.

The company, founded by Volker Oakey, has established a unique partnership with farmers in the Central American country, aiming to improve their economic conditions and promote sustainable farming practices.

Dynamic Coffee Roasters pays farmers directly and at higher rates than typical market prices, ensuring they receive fair compensation for their high-quality beans.

This direct trade model not only benefits the farmers financially but also encourages them to invest in better farming techniques and equipment.

The company's commitment to social responsibility extends beyond fair pricing, as they also provide educational resources and support to help farmers enhance their skills and produce superior coffee.

By fostering these long-term relationships, Dynamic Coffee Roasters is not only sourcing exceptional coffee but also contributing to the development of rural communities in Honduras

Small-scale and artisanal mining in Bolivia offer significant benefits in terms of productivity, employment, and sustainability. These mining practices are labor-intensive, providing substantial employment opportunities in regions where alternative jobs might be scarce. This employment not only supports the miners and their families but also stimulates local economies through a multiplier effect, as miners spend their earnings on goods and services within their communities.

Artisanal mining, when formalized, can enhance productivity by integrating better techniques and technologies, leading to more efficient extraction processes. Formalization also allows miners to access training and resources that improve safety and environmental standards, reducing the negative impacts traditionally associated with artisanal mining.

Furthermore, small-scale mining contributes to sustainability by encouraging responsible resource management.

When miners are organized into cooperatives, they can collectively invest in sustainable practices, such as land rehabilitation and pollution control, ensuring that mining activities do not irreparably harm the environment. The formalization of artisanal mining, as supported by initiatives like those of Andean Precious Metals, helps create a framework where miners can thrive economically while maintaining ecological balance, ultimately leading to a more sustainable and prosperous future for the people of Bolivia.

The coffee model employed by Dynamic Coffee Roasters and the silver mining model by Andean Precious Metals share similarities in their approach to working with local producers to enhance economic and social outcomes. Both models emphasize direct partnerships with local workers—Dynamic Coffee Roasters with coffee farmers in Honduras and Andean Precious Metals with artisanal miners in Bolivia.

These partnerships aim to provide fair compensation, which helps improve the livelihoods of the local communities involved. Dynamic Coffee Roasters ensures that coffee farmers receive higher-than-market prices for their beans, promoting sustainable farming practices. Similarly, Andean Precious Metals, through its subsidiary Manquiri, collaborates with cooperatives of artisanal miners, offering them a stable market and fair prices for their ore, which helps formalize and improve the safety and environmental standards of artisanal mining.

Both models demonstrate a commitment to social responsibility by fostering long-term relationships that not only benefit the companies but also contribute to the economic development and sustainability of the communities they engage with