Thursday, June 9, 2011

Gold to Exceed $12,500

"...A cessation of quantitive easing could open up the black hole of Calcutta for the general equities markets in a way that very few really understand.  You could see thousands of points taken off that market in a very short period of time.

The only way to overcome that would be by whatever name you called it to start the QE again.  That would be indicative of a total loss of control.  So the question is what would the price of gold be if it became publicly undeniable that control of the economic functions for the believers no longer resided in Federal Reserves and central banks? 

The answer is gold would do what it historically attempts to do and that is to balance the balance sheet of the United States of America’s external foreign debt...and when we do the calculations we come up with a figure that is in excess of $12,500.”

- Jim Sinclair via a King World News Interview