I try not to put a dollar figure on gold. Gold is a strange thing. It's the only
thing that's historically proven to be money, and it's the most demonized
commodity in the modern world of finance.
But I will say this, in this century of fiat fantasies conjured up by emporors
with no clothes, the ratio between the Dow Jones Industrial Average and Gold
has hit 1:1 on two occasions and the economic conditions during both times
were nearly the same as we have today. In 2000, the DOW:GOLD ratio hit
its peak of 41. That is, it took 41 ounces of gold to buy one "share" of the
DOW. Today it is bouncing around 5.5 to 6.5. Today the DOW is cheap
compared to gold, but I believe it will get cheaper, regardless of the DOW's
dollar value.
So if the DOW goes to 5,200, which my updated fibonacci calculations show it
is (last year it was 3,600), then gold will end up at 5,200. If it rallies to
20,000 due to hyperinflation (which my gut says will happen), gold will rise to
20,000.
The silver to gold ratio (or in common parlance, gold to silver ratio) has a
historical monetary ratio of 1:16. That is, one ounce of gold is worth 16
ounces of silver. I've heard that the geological ratio is 1:17, but Seeking
Alpha notes 1:10. If you stick with my conservative assertion that for every
ounce of gold in the earth's crust, there are 17 ounces of silver, then naturally,
at $1,800 gold, silver's worth $106. And with $5,200 gold, silver's worth $306.
What's silver trading at today? $40 give or take. So as of today, silver is
worth over 100% more. If gold nearly triples in price up to $5,200, silver will
jump 665% ! ! !
Now will the silver to gold ratio hit 1:17? Historically, silver has never been
used as an industrial metal, but rather as money or kitchenwares or jewelery.
However, during the past 100 years, we've used silver as an industrial metal
and it's thrown the of volatility in this ratio. Despite this anomaly, the ratio
has hit 1:17 during those periods of time when the Dow to Gold ratio hit 1:1!
Talk about confluence.
I believe the silver to gold ratio will hit 1:17, but many people say it will go
to 1:1 due to the present rarity of silver because it's all been consumed by
electronics.
I just did a look up and found Seeking Alpha:
http://seekingalpha.com/article/122086-dow-gold-ratio-of-1-1-or-2-1-in-coming-years
These guys are a pretty good source. I learned from George Gordon. Looks
like more and more people are beginning to see these ratios.
How about oil? Oil is THE WILD CARD! It is wholely dependent on the middle east
and the false "peak oil" theory. There is a geopolitically manufactured shortage of
oil, not a real organic geological shortage. Geologically there is plenty of oil, more
than you can imagine! I have heard Lindsay Williams announce that the elite plan
on taking oil to $200 per barrel! My prior prediction of $3,600 gold would make the
gold to oil ratio 18, but I predicted that ratio to reach 20. I've been predicting gold
to oil at 1:20 for a year and it's finally happened all of a sudden last month. These
things take time to develop, but once it gets going, it happens fast! Today it looks
to be headed to 1:25 or more. By the way, everyone around me either hates me or
they're still laughing, especially the "financially literate". I think they secretly hate
me though because they all failed to steer me into RRSPs and on top of that I was
right about the economy afterall. But you know, I never claimed to figure everything
out all by myself. I told them all this info three years ago!!!! I told them two years
ago!! I told them again last year and now everything I've said is happening. And my
family is still laughing. My friends are still laughing (except one - he's very grateful).
All I say to people is listen to Alex Jones and George Gordon. These two guys alone
connect you to all sorts of other global researchers and you will be able to discern
the signs of the times, many times on your own.
Hey, now that I've given out so much of my research, how about you help me
figure out how to mold terrain in Revit? Place various different trees. Model
ponds and creeks. Got any good links? I want to work on building homes in
the woods complete with stairs, roofs, everything you'd expect to get in the city,
but in the woods. Care to help? What I'm trying to do is model what is already
at a prospective building site and then model the home and other buildings
from there. I envision being able to compile a list of suppliers and prices for
materials and phase out the whole project from bottom up. I believe I can
turn-key the whole process and am looking forward to working with like-minded
designers.
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