Image Source: Pixabay
 

The Fed knows public debt is too high – insurmountable even.

So they’re discussing solutions.

This Fed Economist labels gold revaluation as a “rare case,” but his report shows discussions are on the table.

via @LukeGromen
 

The last time gold was revalued was in 1933.

President Franklin D. Roosevelt issued Executive Order 6102, which required Americans to turn in their gold coins, gold bullion, and gold certificates to the Federal Reserve in exchange for dollars, effectively confiscating private gold holdings.

This devalued the US dollar, and…

The gold price went from $20.67 to $35 – about a 69% increase.

So experts are already speculating on what gold prices could look like this time…

Almost 100 years later, gold could be revalued again soon.

How much could gold really go up?

If I were to give you a really big number then you probably wouldn’t believe me, but…

A middle-of-the-road number would do just fine (maybe a little exaggerated). That would sell a good headline.

Here’s what I know:

If you follow Bob Moriarty at 321gold.com, then you might have read his book, ‘The Idiot’s Guide: Basic Investing in Resource Stocks.‘ Inside you’ll find him reminiscing about “expert” speculations during the 2011 gold bull run.

The Great Financial Crisis, along with quantitative easing, pushed gold upwards.

Moriarty writes:

“140 analysts maintain that gold will eventually reach a parabolic peak price of at least $3,000/oz, before the bubble bursts of which 100 see gold reaching at least $5,000/oz. 17 predict a parabolic peak price of as much as $10,000 per/oz of which 12 are on record as saying gold could go even higher than that.”

There you have it.

No one was right.

So, I’m not going to attempt to tell something I don’t know, but I will say this.

Gold does what gold does best.

It’s shiny, beautiful and nice to look at.

And it’s always there when you need it…

In whatever currency a government wants to inflate, there it is.

On the other hand, a gold revaluation would be exciting, but the better outcome…

The one that would provide stability for at least a few more decades…

Is a new sound money system.

Your thoughts?

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