Bloomberg confirms Jim Sinclair’s $50000 gold prediction if China backs currency with metals

Bloomberg confirms Jim Sinclair’s $50000 gold prediction if China backs currency with metals:

A few years ago, the well respected precious metal analyst Jim Sinclair issued a prediction that the price of gold could be valued as high as $50,000 per ounce should the markets be let loose and free to find true price discovery.  On May 27, that prediction was suddenly confirmed by Bloomberg who determined that if China were to back their currency with gold, the price would need to be valued 50 times higher than the current paper spot price set each day by the Comex and London.

In fact, if the current spot price of $1192 per ounce were increased by a factor of 50, the price of gold would not just be $50,000, but would be much higher and reside at around $60,000 per ounce in U.S. dollars and thus be able to facilitate China’s use of the metal for a gold backed currency.

Recent Bloomberg analysis says if China backed its currency with gold, the price would need to be 50 times higher than it is today.  According to Bloomberg, that would be a gold price of around $64,000 per ounce, which is much more than gold expert Jim Sinclair predicted a few years ago.  Financial writer Bill Holter weighs in, “That was a few years ago, before some of the QE, and Jim has said that $50,000 gold may turn out to be laughably low. . . . I think it is very curious that Bloomberg would run this because Bloomberg is as mainstream Wall Street as you are going to get. . . . It would be my guess that Bloomberg has some type of information that China is going to announce their holdings.  I can show you that China has 10,000 tons of gold.  That’s pretty easy to do.  I use the figure of 10,000 tons, and oddly enough, that is the figure that Bloomberg used.” – USA Watchdog

With the IMF requiring evidence of collateral from a nation to be eligible for their currency to be part of the bank’s Special Drawing Rights (SDR) currency, the likelihood of China announcing and showing an audit of their gold reserves in the near future is a strong probability.  And while the U.S. supposedly holds a little more than 8000 tons of gold in their below ground storage, should China publicly announce holdings of between 3500 and 10,000 ounces it will immediately change the playing field for gold and threaten the West’s ability to price it.

According to Dr. Jim Willie, China may have gold reserves as high as 30,000 tons, as they have been accumulating gold every month over the past five years.  And this much gold would instantly give the Asian power the impetus to wrest price discovery powers away from London and the West, and allow the Shanghai Gold Exchange to let the markets freely determine the true value based on physical buying and selling that only occurs in the Asian markets.

Until the last 42 years, gold has always been the standard by which all currencies were valued.  But when the world went to a fully fiat environment, tying currencies to the dollar and its status as the global reserve via the petro-dollar agreement, gold became shunned as a ‘barbarous relic’ in the eyes of major finance.  And with nearly all economies now built on credit and debt versus real growth and capital, when gold does finally break away from its paper manipulation the world will see just how insolvent all currencies are, and a new era will commence under the old flag of a gold standard.

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