Every 30 – 40 years the world goes crazy, takes a deep dive into a shallow pond, dances with the devil, and resets gold internationally.
A corrupt congress created the Federal Reserve and reset gold’s status. Paper currency units (bad money) eventually drove gold (good money) out of the financial system. Add WWI, the IRS, and League of Nations.
In 1944 – 1949:
The Bretton Woods Agreement (1944) established the dollar as the reserve currency, backed by gold. WWII ended and the nuclear age began. The sun set on the British empire.
In 1980 – 85:
“Stagflation” ended, the gold bubble burst, and the debt-fueled bull market in stocks and bonds began. Gold prices reset lower after their bubble peak.
In 2019 – 2025 (speculation):
Gold reset higher (perhaps $10,000 – $20,000) in a multi-year rally because of diminished confidence in “over-printed” paper currencies, corrupt central banks and insolvent governments.
GOLD – RESET OUT OF THE FINANCIAL SYSTEM:
In 1913: Gold was real money in the United States. Double eagles ($20.00), Eagles ($10.00), and Half-Eagles ($5.00) circulated. Congress and the bankers created The Federal Reserve to boost banker profits. Gold lost status in the financial reset.
In 1933: Gold prices reset, and gold ownership became illegal for US citizens. President Roosevelt issued Executive Order 6102 and forbid US citizens from owning gold, with minor exceptions. Americans received paper certificates for their gold coins. Gold was valued at $20.67 per ounce. Soon thereafter President Roosevelt devalued the dollar, and the gold price rose to $35.00 per ounce.
In 1971: The United States faced a tidal wave of dollars returning from the rest of the world (excessive spending) that the Bretton Woods treaty obligated the U.S. exchange for gold. Official US gold reserves had declined from over 20,000 tons to about 8,000 tons. President Nixon reset gold again and refused to honor the Bretton Woods Agreement. The dollar sank in value. He blamed speculators, instead of government deficit spending and Federal Reserve policies, and assured everyone it was a “temporary” reset. Massive consumer price inflation, devalued dollars, and uncontrolled debt increases resulted from the reset.
In 2013: Chairman Bernanke testified before congress and claimed gold “is an unusual asset,” and “No one really understands gold prices.” The Fed faithful and CNBC believed him. The dollar devaluation continued with QE, ZIRP and other fiat currency creations.
2019 – 2025: (Speculation!) Following a devastating hyperinflation and deflation caused by global central bankers “printing” insane quantities of currencies, the global economic system crashed, confidence in fiat currencies vanished, and central bankers were forced to listen to the cries of the people, “Fix our money!” After many failures they did the “right thing” and backed some currencies with gold. Gold had mostly disappeared from western vaults and by 2025 was held by Russia and Asian nations, large corporations, global banks, and wealthy individuals. Gold backed one or more currencies , and gold certificates were used for global trade.
From Jim Sinclair:
“QE to Infinity, followed by Gold balancing the balance sheets of the sovereign balance sheet disasters. Just as there is no tool other than QE to feign financial solvency, there is no tool to balance the balance sheet of the offending entities other than Gold. It is just that simple.”
- Gold has been money and a store of value for over 3,000 years. That status SHOULD return after the current “paper” era collapses.
- History shows that unbacked paper money always fails because of excessive printing by central bankers and politicians. Our financial system is proceeding toward another currency collapse.
- Global debt exceeds $250 Trillion and is climbing. Governments must borrow more currency into existence to pay maturing loans, which increases total debt. This “Ponzi Scheme” will fail someday, perhaps soon.
- Much accumulated gold has been leased or sold from central bank and government vaults in the US, the UK, and Europe. It moved to Asia, private vaults, and Too-Big-To-Fail banks. Paper currencies will be stripped of remaining value, gold prices will reset much higher, and the wealth transfer to Asia and the global elite will continue.
- As I write this, gold is priced at about $1,280 per ounce and the scenario for the year 2025 is speculative and uncertain. But we know gold is leaving the western world and moving to Asia where Asians appreciate it. Global debt is huge and impossible to repay without hyper-inflation. Ponzi schemes fail. Gold prices will reset higher as central bankers devalue all fiat currencies.
Harry Dent, Wall Street cheerleaders and others assure us that our debt-based currency units Ponzi Scheme will not drive gold prices to new highs. It is also possible that friendly aliens will land a flying saucer in the White House rose garden, Elvis will return for a TV special, and the Easter Bunny…
Hugo Salinas Price: US Govt. Thought It Could Keep World from Investing in Gold
Egon von Greyerz: Gold Maginot Line Will Soon Break
Paper dies, gold thrives.
Miles Franklin will recycle debt-based currency units into real money—gold and silver. Call them at 1-800-822-8080.
The Deviant Investor