My Glimpse Into the Hereafter

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DoChenRollingBearing

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What if FOFOA is right about gold at $55,000? (Other than many of us getting a windfall...) <--- :)

Also, a new blogger has entered the arena re a VERY HIGH price for gold: $134,000 per oz.

I look at some of the fallout and what that might mean:

http://tinyurl.com/obzzy2m

:gold:

:gold:
 
According to the chart posted here: http://www.pmbug.com/forum/f2/gold-price-vs-40%-backing-dollar-2272/

If the dollar were to be 40% backed by gold, it's price should be ~$4,500. I'm assuming that is calculated based upon M3 / tons of gold owned here in the USA.

I believe that FOFOA is talking about a global event with respect to Freegold. I don't have the data at hand, but it's essentially world money supply (value of all currencies) divided by global investment gold at some percentage of backing. I'm guessing these "back of the envelope" type calculations aren't even attempting to reconcile over a quadrillion dollars in derivatives / shadow banking system when considering the true "money supply".

I mention "backing", but it's not to imply that a formal backing is employed, just that it's a useful approach to calculate a value for gold relative to fiat currencies.
 
personally I would categorize FOFOA in the "difiicult to digest if interesting philosophical musings w/little practical application" drawer :) - my humble opinion only. Clearly, something very VERY disruptive would have to happen in the meantime, to get us to that price point. I ma not saying it is impossible, only that it would require Bretton Woods II to happen, and Gold to be chosen for the basis of a new global monetary system.

...which very well might happen at some stage, but again, financial SHTF would have had happen, in the meantime, and all other possible routes of exploration, exhausted (Bancor, SDRs - would have had fail as well already - which they probably will, but we are not there yet :))
 
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