Awake-in-3D: How Gold Could RV to $27,374 against the Fiat Dollar
How Gold Could RV To $27,374 Against The Fiat Dollar
On May 19, 2024 By Awake-In-3D
Understanding the Revaluation of Gold in the Face of Fiat Currency Debt Implosion and Gold-Backing the US Dollar
In This Article:
Gold’s Path to $27,000
The Underlying Analysis: Why Gold Could Surge
Historical Precedents and Lessons
The Supply and Demand Dynamics
Doing the Math
The intrinsic value of gold is set to revalue significantly against the fiat currency system, particularly the US Dollar.
As global economic uncertainties rise, gold’s stability offers the only safe haven.
Here’s why one globally recognized financial expert believes that gold would exceed $27,000 per ounce in the near future.
Gold’s Path to $27,000
A rather straight forward and simple analysis now indicates that gold might surpass $27,000.
This forecast isn’t speculative but grounded in historical data and economic models
.
While no forecast guarantees certainty, the tools and methodologies applied here have proven accurate across various contexts.
The Underlying Analysis: Why Gold Could Surge
The analysis starts with a crucial question: What’s the implied non-deflationary price of gold under a new gold standard?
Central bankers currently control fiat currencies and have little interest in a gold standard. However, should confidence in fiat currencies collapse due to factors like excessive money creation, Bitcoin competition, or a new financial crisis, a return to gold will become necessary.
Under such a scenario, determining the proper price for gold becomes essential to maintain economic equilibrium.
Historical Precedents and Lessons
Historical events provide valuable lessons. The UK’s return to the gold standard at an unrealistic price in 1925 led to an early entry into the Great Depression.
Conversely, the US devalued the dollar against gold in 1933, spurring commodity price rises and aiding economic recovery.
The key policy goal is to find the “just right” price to balance gold and dollars, something the US is well-positioned to achieve with its substantial gold reserves.
The Supply and Demand Dynamics
The supply side of gold shows a significant decline in new mining output.
Despite rising gold prices, US mine production has decreased by 28% over seven years.
This trend suggests that while output could potentially expand, current conditions support higher prices.
On the demand side, central banks, ETFs, hedge funds, and individual purchases drive demand. Notably, central bank gold demand has surged by 1,000% from 2010 to 2022, with no signs of slowing down in 2024.
This scenario of flat supply and rising demand supports the forecast of higher gold prices.
The Bottom Line
The revaluation of gold against the US Dollar is not just a possibility but a plausible outcome based on rigorous analysis.
As economic conditions fluctuate and confidence in fiat currencies potentially wanes, gold stands to gain significantly.
The recent discussion that BRICS is creating a new currency based on 40% gold-backing, the math for the same gold-backing of the US Dollar.
Doing the math for gold reaching $27,374 per ounce
Current M1 Money Supply: The U.S. M1 money supply today is $17.9 trillion.
Gold Backing Ratio: Assume a 40% gold backing for the money supply (historical precedent from 1913–1946).
Gold Required for 40% Coverage: Calculate 40% of $17.9 trillion, which equals $7.16 trillion.
Total U.S. Gold Reserves: The U.S. Treasury holds 261.5 million troy ounces of gold.
Implied Gold Price Calculation: Divide the required gold value by the total gold reserves: $7.16 trillion divided by 261.5 million troy ounces equals approximately $27,374 per troy ounce.
Thus, based on these calculations, the implied non-deflationary equilibrium price of gold under a new gold standard could exceed $27,000 per ounce.
Body of President Raisi to be moved to city of Mashhad on Tuesday
From CNN’s Adam Pourahmadi
The body of Iranian President Ebrahim Raisi and the other victims of Sunday's helicopter crash will be transferred on Tuesday from Tabriz to the northeastern city of Mashhad, where Raisi was born, according to Fars news.
A large public ceremony is scheduled to take place at a prayer hall in Tabriz at 4 p.m. local time on Monday, Fars news reported.
At 9 a.m. local time on Tuesday, a large procession will accompany the bodies of Raisi and the other victims from Tabriz Martyr's Square to the city's airport. From there, the bodies will be moved to Mashhad, according to Fars.
Raisi was born in Mashhad in 1960. He ran the powerful charity known as Astan-e Quds-e Razavi, which manages the huge Imam Reza shrine, a major Islamic holy site in the city.min ago
Iran's president has died. Here's what we know about what comes next
From CNN Staff
Iran's President Ebrahim Raisi at Saadabad Cultural & Historical Complex in Tehran, Iran, on April 29, 2023. Sakineh Salimi/Borna News/Aksonline ATPImages/Getty Images
Iran's President Ebrahim Raisi was confirmed dead by state media on Monday morning, after a helicopter he was traveling in alongside Foreign Minister Hossein Amir-Abdollahian, and seven others crashed in foggy conditions in the country's remote northwest on Sunday.
Acting foreign minister:
Ali Bagheri Kani, who has led Iranian delegations through indirect negotiations with the United States over nuclear issues and prisoner exchanges, has been appointed acting foreign minister after the death of Amir-Abdollahian, state news agency IRNA reported.
New elections: The Iranian constitution mandates that the three heads of the branches of government, including the vice president, speaker of the parliament, and head of the judiciary, must arrange for an election and elect a new leader within 50 days of assuming the role of acting President. Iran's supreme leader, Ayatollah Ali Khamenei said in a message to state news agencies that Mokhber was responsible for organizing elections for a new president within that time.
Global reaction: The loss of Raisi — a conservative hardliner and protege of Ayatollah Khamenei — is expected to sow further uncertainty in a country already buckling under significant economic and political strain, with tensions with nearby Israel at a dangerous high. His death has already triggered international reaction with Saudi Arabia, Pakistan, India and the UAE leader expressing their condolences for his death. Lebanon has declared three days of mourning.
Militias respond: Iran-backed militant groups Hamas, the Houthis, and Hezbollah have sent condolences to Tehran over the death of Raisi.
3 hr 19 min ago
Iran cancels all cultural and arts activities for seven days
From Negar Mahmoodi
All cultural and arts activities in Iran will be suspended for seven days following the death of President Ebrahim Raisi, the Ministry of Culture announced on Monday.
Raisi died in a helicopter crash at age 63.
The country’s foreign minister and seven others were also killed after the crash in a remote, mountainous area of Iran’s northwest.
Fri. 17 May 2024 MarkZ:“On May 22nd,(This is from the IRS but other government agencies are also doing thi) they will be conducting emergency alert tests nationwide to all their employees on text messaging, email and laptop notifications. So they are prepared forMay 22nd.
MZ From a member:“Now in one of the top banks here in the country – they are very clued in on currencies. When they found out the amount of the currency they had they said “We need to sit down with you- but we can’t sit down with you until the22nd.Our key people for wealth management are in training for foreign currencies and exchanges – but we want to sit down with as soon as they back from training.”
MZ:Now this doesn’t mean the RV will happen on the22nd.But the bank can’t talk to them now even though they want to talk to them….until May 22nd. So- the top wealth management at a big bank with a big wealth management arm-and they get back from foreign currency exchange training on the22nd –This is a great “tell.”
