Hugo Salinas Price
The term ‘price of gold’ is a misnomer. Gold is the center of the monetary universe, and the planets—the currencies—circle it. The correct starting point is the price of a currency expressed in terms of gold, and not the other way around. With gold at $1,388 per ounce, the price of the dollar is $1/1388, or .00072 oz. of gold.
Gold is leaving the dollar-centric West, because at .00072 (7.2 ten-thousandths) per ounce the dollar is overvalued and gold is undervalued. There will come a time when those who control the dollar price of gold find they have run out of gold to sell, and are powerless to support the price of the dollar.
This is already happening in the Middle East, India, Pakistan, China and Southeast Asia, where gold trades at premiums to the undervalued ‘price of gold’ which the Anglo-American Axis (Axis) insists on maintaining.
The premiums effectively devalue the dollar just enough to ensure that the gold travels from West to East. The Axis is auctioning off its gold to the highest bidders, and the highest bidders are taking it off the market.
When the Axis can no longer support the dollar’s price by selling gold, because it has none left to sell, then the rest of the world will bid for gold, not only against the US dollar, but against all other currencies. The prices of currencies will fall like stones, and the flow of gold will seek to eliminate both under-valuations and over-valuations wherever they occur.
By auctioning off all its gold, down to the last available ounce, the Axis is betting everything on the dollar’s ability to dethrone gold: a big mistake!
Gold will not lose its central position as the money used globally for thousands of years. The Axis’ aggressive measures with regard to gold are absurd, and will lead to a global disaster.
In the worst case scenario, as the rest of the world devalues the dollar by purchasing all the West’s gold, dollar supporters may resort to a devastating war as a last desperate attempt to supplant gold with a man-made fiat currency, the dollar.
The wise (always a small minority) will squirrel away some ounces against the collapse of the Axis’ attempt to reorder the world’s monetary system around digital and paper currencies.
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