Marc Faber on The Alex Jones Show: The Real Value of GOLD vs Paper in Troubled Times

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Stay the Course!

"Stay the course but tighten your seat belt in gold.

Volatility is going ballistic but one thing is for sure and that is a $1650 minimum price objective with much more probable."

- Jim Sinclair, from JSMindset.com

This is Not the Top

If you had lived through a top in the gold market, you would know that without any question whatsoever, this is not it.

Ignore those writers who wish to sell a service by feeding on your fear. Gold is going to and through $1224.10 on its way to $1274-$1278. Following that it is on to $1650 and Armstrong and Alf’s numbers.

- Jim Sinclair

Fiat Currencies = Zero

"Fiat currencies don't usually start out that way, and those rare cases when they have were very short-lived. Societies usually start with high value commodity money such as gold and silver. Gradually, the government hoodwinks the population into accepting fiat currency by issuing paper demand notes that are redeemable in precious metals. These demand notes (currency) are really just "certificates of deposit", "receipts" or "claim checks" on the real money that is in the vault....

1957 Silver Certificate: (One Dollar in Silver Payable To The Bearer On Demand):



Once a government has introduced paper currency, they then expand the currency supply through deficit spending, printing even more of the currency to cover that spending ….. Then, usually due to war or some other national emergency, like foreign governments or the local population trying to redeem their demand notes (bank runs) the government will suspend redemption rights because they don't have enough gold and silver to cover all the paper they have printed, and poof! You have fiat currency."

Modern day Federal Reserve Note: (Paper & Ink:



- Michael Maloney from GoldSilver.com

Gold Will Hit $5,000 an Oz

"Let me get right to the point. Gold’s going to $5,000 an ounce.

I know that sounds preposterous to most people. In fact, some of you probably think I’m crazy.

But for a whole host of reasons, $5,000 may well end up being a conservative estimate.

So before you start posting comments that I’ve gone bonkers, hear me out…

In 2001, gold traded as low as $255 an ounce. Within eight years, its price had quadrupled to more than $1,100 an ounce. How many investors thought that was possible, or even likely? Probably not very many.

Yet, it happened.

What’s more, since hitting its secular bottom back in 2001, gold has posted a positive return in every calendar year. So far, the current bull market has been pretty orderly.

During the past 10 years, gold has indeed become the trade of the decade, beating out commodities, oil, high-grade U.S. corporate bonds, U.S. Treasuries, and yes, U.S. stocks."

- By Money Morning on January 14, 2010

S&P 400, Gold $2,500

"David Tice, chief strategist for Bear Markets, reveals his pessimistic view on the markets and what he's buying to hedge against financial crisis."

U.S Dollar is Toast

"Take a look at the following list of news topics:

-Tishman Real Estate to miss payment on a commercial loan of over $5 billion on a massive New York apartment complex, the 2nd largest default in commercial real estate loans in history.
-California declares an economic emergency.
-Employment figures stink.
-Apartment vacancies hit record highs.
-Foreclosures are setting new records.
-Consumer credit in the US drops a record $17.5 billion.

The US dollar is toast. Gold is headed to $1650 – $1764 now.

Remember, at $1764 1,000,000 mineable ounces of gold in production will have a gross worth $1,764,000,000.

That is real money. That is honest money."


- Jim Sinclair as seen on JSmineset.com

Expect Gold Volatility

"Brian Hicks, co-manager of the U.S. Global Investors Global Resources Fund, argues that gold could correct in the short term but that long term prices will head higher."