With everyone focused on the noise from the markets, today King World News thought it was a good idea to take a step back and look at the big picture of the war between gold and the Federal Reserve.  This led to a remarkable question:  Is the price of gold headed to nearly $20,000?

MacroTrends:  This chart (below) shows the ratio of the gold price to the St. Louis Adjusted Monetary Base back to 1918. The monetary base roughly matches the size of the Federal Reserve balance sheet, which indicates the level of new money creation required to prevent debt deflation. Previous gold bull markets ended when this ratio crossed over the 4.8 level….

Continue reading the KWN piece below…


Advertisement

To hear which company investors & institutions around the globe are flocking to 
​that has one of the best gold & silver purchase & storage platforms 
in the world click on the logo:

GoldSwitzerland:MAM - King World News


Gold To Monetary Base Ratio

KWN Macro Trends IV 6:11:2015

King World News note:  The chart above reveals just how far the bull market in gold has to run before it ends in exhaustion.  Gold would have to advance more than 16.5-times in price vs the monetary base in order to hit the 4.8 level highlighted above.  If the monetary base just stayed stagnant and the 4.8 ratio is hit, that means the gold price will be nearly $20,000.

King World News note on chart II (below):  There is a massive chasm between the Fed's balance sheet and today's gold price.  This is one of the many reasons the gold price is set for a historic upside surge (see chart below that is updated through June of 2015).

Fed Balance Sheet vs Gold Price

KWN Macro Trends V 6:11:2015

King World News note:  This shows the long-term Gold/Oil Ratio has moved solidly in favor of gold, despite the recent pullback (see chart below).

70-Year Gold/Oil Ratio

KWN Macro Trends 6:11:2015

King World News note:  The massive change in trend in the Gold/Oil Ratio chart above is yet another reason why the mining shares are still under accumulation by strong hands.  The smart money is buying while the mining shares are at an all-time historic low vs the gold price (see chart below).

Multi-Decade XAU vs Gold Ratio

KWN Macro Trends III 6:11:2015

King World News note:  The bottom line is whether the price of gold is headed to $20,000 or not, investors should be accumulating physical gold and silver while they are highly discounted because of U.S. Fed interference in these key markets. ***ALSO RELEASED: This Is How It Will End CLICK HERE.

© 2015 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the articles is permitted and encouraged.

If you are interested in purchasing physical gold and silver for delivery you can call Steve Quayle or his staff at (406)586-4842, or you can email them at [email protected] or [email protected]

King World News RSS Feed

The audio interviews with Stephen Leeb, Andrew Maguire, Michael Pento, Dr. Paul Craig Roberts, Gerald Celente, Eric Sprott, Robert Arnott, David Stockman, Chris Powell, Rick Rule, Bill Fleckenstein, John Mauldin, Egon von Greyerz, James Turk, Dr. Philippa Malmgren, Marc Faber, Felix Zulauf, John Embry and Rick Santelli are available now and you can listen to them by CLICKING HERE.

Share on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someonePrint this page