Today one of the greats in the business laid out the roadmap to a jaw-dropping $75,000 gold price.
Road To $75,000 Gold
April 18 (King World News) – Jonathan Haycock, partner at VON GREYERZ: “A lot of people say to me, Eric, how do I value gold? I can see that it’s outperformed the S&P for the past 25 years, and I don’t own any, but how do I value it? I look at it three ways: One, just look at gold market cap as a percentage of global stock markets. The long-term average is 40%. Today it’s just under 20%. So just to get back to the average that’s $10,000.
Let’s look at metric number two, US gold reserves as a percentage of federal debt. Today it’s 3%. Go back to the 1980 peak it was 18%! So if we were to get back to that 1980 peak, Eric, that would mean the price of gold would be $26,000 an ounce. And for a bit of fun let’s go back to that ratio at the end of World War II, what was it? It was 51%. That would put gold at $75,000 an ounce, Eric. You’ve got to think about…to listen to Jonathan Haycock discuss $75,000 in this powerful and timely audio interview
