I believe it’s going a lot higher…it’s going to have a parabolic spike, caused by some event or some loss of confidence…a US dollar crisis would be a perfect example. That will cause gold to go through the roof, and then everybody will want to own it…I don’t think we’re even close to that yet…Gold will probably have a much greater run than some of the other hard assets–because it’s also a currency – Frank Giustra, mining industry entrepreneur (one of the “architects” of Goldcorp)
That quote is from an incredible interview with Frank Giustra. Well worth hearing: LINK
My business partner was having a discussion about the current fiscal/financial situation in this country with an old friend of his. I think his friend was trying to get his thought process around the scope of the problem and how to fix it. His friend was trying to work out the math on the Federal budget deficit – well, essentially all of the numbers as they are presented by the Government. He is also trying to understand why gold would be a large piece of the “solution puzzle.” What I sensed in his thought process was a high degree of “hope” and a misunderstanding of the numbers as presented by the Government.
But “balancing” the Federal budget isn’t a matter of just cutting back on medicare and social security. I don’t know exactly which areas of the various Government websites that my partner’s friend was getting his numbers from and I don’t know to what degree he understands that the numbers are highly massaged and misleading.