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  $8,000/ozt Gold Is Possible (likely?) Here's Why  
  Lorimer Wilson on 2018-03-20 17:36:51.0
 
 

You can either wait on the sideline and watch gold and silver prices skyrocket ingold    rise the coming months and years and look back in regret, or you can diversify a portion of your portfolio to precious metals now, before the next financial earthquake or stagflation destroy your financial future. The choice is yours.

The original article has been edited here for length (…) and clarity ([ ]) by munKNEE.com - A Site For Sore Eyes & Inquisitive Minds - to provide a fast & easy read.

…[During] the last two years of Jimmy Carter's presidency followed by the first two years of Reagan's, times were tough. Inflation went up to 15% and the FED was forced to raise interest rates up to 21% to fight the soaring prices and folks, that is what a period of Stagflation looks like.

What is ?Stagflation,? you ask? The term is a combination of ?Stagnation? which in economic term implies to ?low stagnant economic growth? and ?inflation? which is the devaluation of the dollar that leads to higher prices of goods and services.

How gold reacts during a period of Stagflation

  • On November 2nd of 1976 when Jimmy Carter defeated the incumbent president Gerald Ford to win the general election, gold was at $122.50 per [troy] ounce.
  • Four years later, in 1980 when Ronald Reagan defeated Jimmy Carter, gold had soared to a record $850 per [troy] ounce.

…[The above represents] a 596% jump in just 4 short years, most of which took place in the last two years of Carter's presidency when Stagflation had taken hold of our economy.

Where will the gold spot prices be in the next few years as Stagflation returns?

  • If we use the 1970's model as what might happen this time around, a 596% rise from today's spot price of $1,321, it can easily put it at $7,867 per [troy] ounce.
  • Even if we do the math on the conservative side and assume it will rise only half of what it had back then, it will put the prices at $3,933 per [troy] ounce.

The above insights mean that, at the very minimum, you can triple your money if you think ahead and act now, by following what this piece of history has taught you.

Now add to all this,

  1. the rising national debt which last week crossed the $21 Trillion dollar mark,
  2. the rising annual deficit which according to CBO (Congressional Budget Office) will be rising once again to over a Trillion dollar next year and over two trillion dollars in a few years after that,
  3. the N. Korean, Russia and Middle East conflicts
  4. and the Trump's trade war with China and Europe,

and you have a witch's brew that can send the prices soaring even higher.

Bottom line:

You can either wait on the sideline and watch gold and silver prices skyrocket in the coming months and years and look back in regret, or you can diversify a portion of your portfolio to precious metals now, before the next financial earthquake or stagflation destroy your financial future. The choice is yours…

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The post $8,000/ozt Gold Is Possible (likely?) Here's Why appeared first on munKNEE dot.com.

 
 
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