Why gold is going a lot higher ... portfolio manager, page-58

"I would also love if gold went to the moon."

So much talk in this forum about gold reaching astronomical values, without any real discussion about why it could. A lot of wishful thinking, without any concrete reasoning.
IMO Two things have to happen to make it possible, gold has to escape the price fixing prison of the Comex, and gold has to used to back one or more of the world's top currencies. The first of these steps can be precipitated by the Shanghai Yuan Gold Fix scheduled for next month. I don't see how Comex control over the GP can continue after This Chinese move.
I think we will see the GP steadily rise with the Comex chains removed. Large gold deposits which are marginal or sub-economic will become operating mines over time. We will hear of many more "discoveries" most of which are already known to the big miners, and world gold production will increase very substantially. At some point I think China will announce (at least partial) gold backing for the Yuan. The timing of this will be China's, and gold will be revalued much higher again.
Of course, this is my only hypothetical, and it may evolve differently, possibly with other countries and the IMF as players, but I believe the end result will be similar. The failed fiat experiment will have run its disastrous course and expired.
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