$7,000 Gold, $400 Oil and $100 Silver Will Help Beat a Coming US Deflation Explains Jim Rickards

by Peter Cooper

Arabian Money

Gold investors ought to be reading ‘The Death of Money’ by Jim Rickards this summer. He explains how an executive order raising the gold price to $7,000 will be the only way to break a deflationary downward spiral in the US if money printing reaches its limits and the Fed pulls back, as is happening this year.

‘The Federal Reserve could make this price stick by conducting open market operations…’ he says. ‘The purpose would not be to enrich gold holders but to reset general price levels… this kind of dollar devaluation against gold would quickly be reflected in higher dollar prices for everything else.

$400 oil

‘The world of $7,000 gold is also the world of $400 per-barrel oil and $100 per-ounce silver. Deflation’s back can be broken when the dollar is devalued against gold, as occurred in 1933 when the United States revalued gold from $20.67 per ounce to $35 per ounce, a 41 per cent dollar devaluation.’

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