Gold $2000 in 2020 -- Look at Central Banks for Direction on Gold Prices

Gold prices have done well last year , but the precious yellow metal could do even better in the coming months . A $2,000 an ounce price for gold is a very possible. You must pay attention to the big players in the gold market. They are making a very bullish case for investing in gold. Who are these big players in the gold market? The Central banks, of course .The Central Banks Are In Love With Gold. As things stand at present, central banks are in love with gold. They are buying gold more than ever before, and it doesn’t seem like they will stop anytime soon. Here’s some perspective. In 2019, central banks added 650.3 tonnes of the precious yellow metal to their reserves. This is a little shy of the 656.2 tonnes they purchased in 2018, but still a respectable amount. Looking at the bigger picture, the central banks have been net purchasers of gold for the last 10 consecutive years. Over this period, they bought 5,000 tonnes of the precious metal. I am also seeing China and Russia stacking tons of gold. Why? I believe they're sick of the US f-ing with their banking transactions and settlements. My bet is they will soon come out with a new gold-backed currency as an alternative to an increasingly fiat US Dollar. Or something like that. These other countries are getting sick of the US sanction thing screwing with their trade and their economy. Why else would these countries be hoarding this much gold? One of these days, it will be China or Russia, setting the daily price of gold. As soon as they've loaded up with as much physical as can be found, they will crack the fake paper gold market wide open. I bet , gold is going to hit just shy of $2020 in 2020. QE4 is crazy third world Dollar debasement and is just getting started. Plus, you'll see even more central banks buying gold, but at some point, they'll put in a panic bid as global gold availability gets tight. The end game has started. Welcome to The Atlantis Report. The western governments are terrified of gold to the point that their central banks are printing trillions of dollars to sink the gold ; because if gold is traded the honest way in a real offer and demand formula, gold would be $50,000/oz and can wreck the fraud all western countries have been committing on their citizens. A system that creates money backed by nothing and requires a constant minimum amount of inflation turns all citizens into the slaves of banksters. This was known in 1913. After 107 years and with the Dollar now buying 3 cents worth of what it did in 1913, I really doubt that the Fed is suddenly going to become a good steward of purchasing power. Who would you trust more. Shyster and parasites on wall street? or 3000-year track record (biblical footnotes) of honest value. It is really that simple of a question. Comex Gold price up 18.8% in 2019. Comex Gold total contract open interest up 335,062 contracts or 74.2%. When the Comex gets called out on its fake paper gold printing, gold will soar. Does that happen in my lifetime? Who knows. Just divide all fake fiat plus possible derivative losses by the known amount of gold.. more fiat created each day... so we are at hundreds of thousands per ounce now. In a recent blog, Peter Schiff wrote under the title: Gold Holdings in Gold-Backed ETFs Hit All-Time High in January. ETF gold holding reached another record high in January, according to the latest data from the World Gold Council. Gold-backed funds added 61.7 tons of gold last month, boosting holdings to an all-time high of 2,947 tons. This continues a trend we saw in 2019 when gold holdings in ETFs grew 19% and eclipsed all-time highs. With the price of gold increasing by nearly 5% in dollar terms in January, ETF assets under management grew by 8%. Total AUM is now less than 2% away from the all-time highs of 2012 when the price of gold was 11% higher. European funds saw the greatest growth, adding 33 tons of the yellow metal in January. British funds led the way as investors continue to flock to gold as a safe-haven hedge in the midst of Brexit. UK-based funds continue to gain regional and global market share, now representing 44% of European assets and 21% of global assets North American funds reported inflows of 29 tons. Low-cost gold-backed ETFs in the US have seen positive flows for 19 of the past 20 months and have increased their collective holdings by 220% Asian funds were basically flat, with a slight outflow of 1.2 tons. Funds in other regions, including Australia, saw modest inflows of 0.7 tons. According to the WGC, gold-ranked as one of the best performing asset classes in January (+4.6%). The yellow metal outpaced global equity markets and commodities as a whole. Worries about demand in China put a significant drag on oil prices. This drove the overall Bloomberg Commodity Index down by 7%. The WGC called this “a clear example of gold’s ability to separate itself from the broader commodity complex. A World Gold Council year-end report said the primary drivers for gold would likely remain in place in 2020. Including Federal Reserve intervention in the repo markets and what is in effect quantitative easing, continued trade tensions between the US and China, and surprisingly low yields in speculative corporate debt. Inflows of gold into ETFs are significant in their effect on the world gold market, pushing overall demand higher. The system is intentionally convoluted so they can print without concern. This has been obvious since we were forced to leave the gold standard because we didn't have enough gold to back up all our dollars. The thing to remember about the price of gold is that the only fair comparison is with the price (value) of paper-money. Eventually, paper money will come to be worth whatever backs it, and whatever backs it is basically nothing. Forget about gold for a minute. Look at other items. A loaf of supermarket bread is now $3/loaf. In 2030 - will that more likely be $6/loaf, or $1.50/loaf. Gasoline - now $3/gallon. In 2030, will it be $1.50/gallon in 2030, or more likely $6/gallon. Local DMV/Government drivers license renewal fee - now $34 (was $20 last time I renewed it). Will that be higher or lower in 10 years. The Fed has given us stealth inflation, which corrupt corporate media will not be allowed to talk about. The Fed is going to give us a LOT more inflation in the next ten years. Gold is insurance against tail risk. It is not an investment. And yeah, like other insurance, it is possible it won't pay off. The conditions that would have to exist that it won't pay off are catastrophic. You will be worried about eating and staying alive. The utility is not as low as scrip/fiat. Yearly gold mined is about 400 million ounces per year. You need only look at ONE ... yes, just ONE stat to understand what's up with the quoted price of gold... So... you tell me. The CME, the Gold futures market, has 8 million ounces in their vault for delivery. That means anyone who wants to close out their quarterly contracts in receipt of gold can do so, and these 8 million ounces is the guarantee you can be paid in gold. Got that so far? The CME Gold futures trades about 300,000 gold contracts EVERY DAY. Yea. You heard that right. CME Group Averaged 18.2 Million Contracts Per Day in November 2019. At 100 ounces per contract multiplied by 300,000, that comes out to 30 million ounces of gold being traded every day on the CME. There are supposedly only about 6 billion ounces available ... on the planet at any given time for purchase. Cough. There.. I think I got that right now. If you want to settle in gold... you are sent to the Swiss and London to close out your position and receive your physical. For the last two years, the CME claims that they have delivered 14 thousand tons of gold, Yea, you heard that number right too. 14,000 tons for delivery. Keep in mind the US Government Claims,cough, to have 8000 tons in Fort Knox. But the CME claims they delivered twice that amount ... Fourteen thousand tons in the last two years. Somebody pull on his leg, Mine is long enough. If you total up the M2 money supply and outstanding credit and then divide by the number of ounces held by the US treasury and Fed, you get somewhere around $66,000 per ounce. Roughly 40 times where gold is today. You don't have to believe in gold. But what I want to point out to you is that if there is a currency reset, and if everything goes to hell, it is possible to see gold go up to 40X. This means that if you invest just 2.5% of your portfolio in gold, you can have 100% protection for all your assets if everything goes belly up. Just 2.5%!!! And that's if all your other stocks, bonds, real estate, etc. went to zero, which won't happen. Even in the worst-case scenario, they'd still have some value. So even just 2% in gold, would probably still protect you 100%. Why wouldn't you buy just 2% in gold and be able to feel insured about disaster? Even if it turns out nothing happens, your portfolio will still capture 98% of the gains that it otherwise would have. Gold is such dirt-cheap insurance right now that it makes absolutely no sense to own at least a little bit. And of course, the US Government will still be claiming to hold some physical, but it was 50 years since the last REAL audit. Nobody believes they still have 10000 tons of it. I bet they don't even have 1000 tons left. When Nixon took us off the gold standard in 1971, gold was officially $ 35.00 an ounce. At the approximate current price of gold at $ 1,550.00, this would mean a compounded rate of approximately 8.1% for 48 years and five months. Based on $ 1,550.00, the dollar has lost 97.7% of its value against gold. If gold went to $ 2,000.00, the compounded rate would be almost 8.71% and a loss of 98.3% for the dollar. When Nixon took us off the gold standard in 1971, silver was officially $ 1.59 an ounce. At the approximate current price of silver at $18.00, this would mean an approximate compounded rate of 5.14% for 48 years and five months. Based on $18.00, the dollar has lost approximately 91.2 % of its value against silver. If silver went to $24.00, the compounded rate would be almost 5.8% and a loss of 93.4% for the dollar. Also, silver serves two roles, one monetary and the other industrial. The Precious Metals's qualify for capital gains if you should desire paper. Gold and silver have no counter liability. All paper does. An inflation calculator at saving.org shows that the Precious Metals's beat inflation as follows: Gold beat inflation by over 600%. Silver beat inflation by over 79%. Fiat currency always eventually returns to its intrinsic value--zero; said Voltaire. I stack for when I am old. I hope I never have to spend any of my Precious Metals. But when I weigh Precious Metals against fiat, Precious Metals win every single time. Paper is just that: paper. Same for electronic digits. Both can go, poof. Precious Metals? Meh. Been used for 5000 years. Good enough for me. Even the GLD - paper - is nothing more than a title to physical gold that has been hypothecated 5-10 fold the annual mine yields. Per the investment agreement, most people that purchase GLD are not allowed to take delivery. Those that are barely qualified for delivery get the run-around to try and stop them from taking delivery. What physical there is, is reserved for the fat cats. Your small pile of cash just helps make their physical pile bigger and keeps you from visiting your LCS or online supplier. Win, win for them. Remember, if you don't hold it, you don't own it. 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