Coming out of the recent Independence Day week, there are 3 very positive predictions for the price of gold that investors should be aware of.
The first comes from Jim Sinclair, editor of Jim Sinclair’s Mineset. Sinclair is a veteran precious metals and currency analyst who has been tracking the markets since 1977.
In a bulletin that he called his most important since 2001, Sinclair is calling for the price of gold to reach $3500 per ounce, or more than double current levels.
Finally, Paul Brodsky, bond market expert and co-founder of QB Asset Management, says that central banks have reached the “inflate or die” point and as a result, investors should “hold tightly to your gold.”
The world has simply gotten itself into too much debt. There are creditors that expect to be paid, and debtors that are having an increasingly difficult time making their coupon payments. No amount of political or policy intervention is going to change that reality.
Looking at the global monetary base, Paul sees it dwarfed by the staggering amount of debts that need to be repaid or serviced. The reckless use of leverage has resulted in a chasm between total credit and the money that can service it.
So how will this debt overhang be resolved?
Central bank money printing — and lots of it.
At this point, the danger posed by the instability of our monetary and fiscal house of cards is so great that trying to time an investment program to when this avalanche of printing will occur is too risky, in Paul’s opinion. It’s time to shift your remaining capital into hard assets.