The price for one ounce of gold will reach 12500$

Jesse Livermore was the most famous speculator of Wall Street in the 20th century. His business partner was Bert Seligman, whose son, Jim Sinclair, was able to predict accurately the peak price of gold during the "bull" market in the 70's.

1974, Jim Sinclair said the final price the market will peak at $ 900 mark per ounce. January 21, 1980 at the London gold fixing price reached a maximum at the time of $ 850 per ounce. The same day, Jim immediately sold all his gold at that price, earning a net profit of $ 15 million (now about $ 40 million). The next day the price of gold fell to $ 763 per ounce. It was only November 11, 2007, 27 years later, gold could rise again above $ 800 an ounce.

In the early 2000s, Jim Sinclair has created a website – www.jsmineset.com – where he shares his forecasts and evaluates current events. In 2003, he predicted that gold, then at a price of $ 350 per ounce in 1650 to reach $ 2011 before he made a mistake by only $ 100. Gold reached $ 1570 then.

When the clock struck gold ceiling of $ 1,000 per ounce, Jim said confidently that the price of $ 1650 will not peak at the cost of this “bullish” trend, but only an intermediate stage. Jim always agree with the Elliott Wave Theory of gold from the Alpha Field (Alf Field), according to which, the peak price of gold should amount to $ 10,000 +.

Jim Sinclair used the following formula, which he learned from Jesse Livermore, to calculate the peak price of gold at the end of “bull” market. His reasoning is as follows:

“In times of crisis, the price of gold in U.S. dollars always strives to balance the international balance sheet of the United States. Therefore, we find the following: take 90% of the U.S. international debt, net of China, adding 50% debt to China. Then divide that number by the number of formal ounces, which is believed to be owned by the U.S. Treasury. The result is a price, which tends to be gold. It is for this formula, I calculated in 1974 the price of gold at $ 900 per ounce. Using this formula, one can calculate the peak current value of gold “bullish” trend. ”

According to Wikipedia, the international debt of the United States in January 2011 amounted to 4.5 trillion $, of which $ 1.1 has China. Add 50% ($ 550 billion) of debt to the Chinese 90% (3.06 trillion $) of the total international debt (minus China), we obtain the result $ 3.61 trillion. The official U.S. gold stock is 8133 tons (287 million ounces). Divide $ 3.61 trillion by 287 million ounces, and the result is $ 12 578 – this is a reflection of the value of gold per ounce, which will balance the balance sheet of the United States. Therefore, the price of gold should be reassessed or market funds or U.S. government official to 12,500 dollars per ounce.

Therefore, it is not just a “bull” market in gold, this epochal shift that will lead to the impoverishment of Western countries and the destruction of the middle class population. The winners will be those people who refuse to “paper precious metal” in favor of physical possession of gold and silver. And lose in the long run, those who would keep their wealth in paper currencies like the dollar, euro or pound sterling.

As for timing, when it happens, Jim Sinclair says that he made his prediction at $ 900 in 1974, slightly later than five years, the price of gold reached its peak. If we compare the current situation, in the opinion of not only Jim Sinclair, the price of gold could reach its peak in 2015-2016. It was at this time will damage the global system of paper currency. To the level of 12500 $ per ounce gold and $ 500 per ounce of silver, we still have to wait, but that’s up to $ 2,500 per ounce and $ 100 + per ounce of silver have to wait quite a bit.

For many people in the West, the destruction of paper currencies in favor of “hard” money is the most important economic event in their lives. Those who will operate properly, they can increase their wealth, but someone who is not ready for such an event will be living in poverty.