Gold at $7,000 article goes viral in Chinese media
October 25, 2014 / D.Collins

“Gold going to $7,000″, an article today in the Chinese media is going viral and one of the most viewed articles in the financial press. The article references American Jim Rickards and his concept of comparing inflation-adjusted gold prices. Most Chinese economists think that the price of gold should be approximately $ 2,400 / ounce, instead of the current $ 1,235.

The article references estimates by Jim Rickard’s that if Central banks had to to use gold to support its currency, then the price of gold will go to $ 7,000/ oz. That only includes the printing that has been done already, not the continuous printing of fiat currency that continues unabated by Central banks all over the world.

Todays volatile financial markets are a warning that todays assets have no actual real underpinning. There is no insurance. Gold stands as the bulwark.

Although the U.S. Dollar is the reserve currency of the world today, gold is the key to the new millennium of global trade balances.

The Dollar is losing its reserve status, holdings by Central Banks have been going down for decades. Meanwhile, Chinese RMB holdings are skyrocketing across the globe. The U.S. has been running trade deficits for 30 years, when the Dollars start to go back onshore their will be a global puke of the financial system and inflation levels the U.S. has not seen in its entire history.