The public has no idea this could send the price of gold skyrocketing to over $40,000 an ounce.
May 7 (King World News) – This is a small portion of a phenomenal report released today by Jesse Colombo: As the U.S.’s fiscal situation becomes increasingly precarious with each additional trillion dollars of debt, confidence in the long-term stability of the dollar is eroding, prompting global central banks to reduce their dollar holdings, as shown in the chart below, in favor of gold and other currencies, and this trend should accelerate now that the U.S. debt burden has surpassed 100% of GDP.
While we’re on the topic of federal debt, I’ve found that it serves as a useful yardstick for evaluating precious metals by comparing them directly to the level of federal debt in order to determine whether they are undervalued, fairly valued, or overvalued. I do this by plotting the ratio of a particular metal’s price to federal debt, indexing it to 100, and comparing it to past levels. If the ratio is low, the metal is undervalued, and vice versa.
Starting with gold, we can see that the gold-to-U.S. federal debt ratio reached 924 at the 1980 peak, 118 at the 2011 peak, and stands at 108 today. Because gold is only about two years into a secular bull market that, based on history, should last at least a decade, I believe the 1980 episode is the more relevant comparison. On that basis, gold has considerable room to rise over the course of this bull market, especially when factoring in continued increases in federal debt.
KING WORLD NEWS NOTE: If Gold vs US Debt Ratio Reaches 1980 High The Price Of Gold Will Skyrocket To Over $40,000
JUST RELEASED!
To listen to Alasdair Macleod discuss the historic collapse in Open Interest in silver and gold CLICK HERE OR ON THE IMAGE BELOW.
ALSO RELEASED!
The Mining Boom Is Accelerating CLICK HERE.
The US Economy Is In Full-Blown Collapse CLICK HERE.
Central Bank Gold Buying Spree Accelerates CLICK HERE.
We Are Approaching The Next Historic Breakout In The Gold Sector CLICK HERE.
Michael Oliver – This Will Signal A Historic Upside Breakout In Silver CLICK HERE.
Silver Open Interest Just Collapsed To Lowest Level In 15 Years! CLICK HERE.
This Just Happened And It Is Massively Bullish For Gold! CLICK HERE.
Colombo Says Odds Now Favor Upside For Gold & Silver CLICK HERE.
This Chart Shows Gold Price Headed To $25,300 CLICK HERE.
Fed Decision, Plus This Could Be Hugely Bullish Catalyst For Gold & Silver CLICK HERE.
Most Catastrophic Energy Crisis In History Just Sent Oil Above $105 As Brent Hits $110 CLICK HERE.
Gold Will Have To Skyrocket To $46,000 To Equal 1970s Bull Run CLICK HERE.
Michael Oliver – The Next Explosion Higher In The Gold Sector Will Be Triggered By This CLICK HERE.
Silver Price May Hit $258 As Comex Silver Inventories Collapse CLICK HERE.
Nomi Prins Just Predicted Gold Price Will Hit $7,000-$9,000 CLICK HERE.
Comex Gold & Silver Inventories Are Collapsing! CLICK HERE.
Another Gold Bull Market Catalyst, Plus A Look At The Big Shift CLICK HERE.
© 2026 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.
