Gold at $40,000: Jim Rickards
James Rickards (lawyer,economist, investment banker and author) has written a new book, “The Death of Money”. It is available here.
In an interview with Valentin Schmid of Epoch Times (read it here), he considers that the petrodollar will be replaced by another international monetary system, just as the petrodollar replaced Bretton Woods.
He does not consider this to be a reason for doom and gloom, but rather that a collapse in faith in the USD will see a rush for gold; physical gold. His target is USD7,000 to 9,000 per ounce within the next three to five years.
Further, he thinks that if gold supports a fiat currency, then M2 money (cash [M1] plus term deposits and the like) with 100% gold backing would see gold at up to USD40,000 per ounce. The caveat is that gold would not necessarily be worth more in real terms, just worth more against a collapsed USD.
Get the book, visit Jims blog.