MICHAEL PENTO: It Would Be More Surprising If Gold Didn’t Go To $10,000

michael pento
Michael Pento

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The world’s central banks have gold bulls on high alert thanks to unprecedented, ultra-easy monetary policy.Eric King of King World News asked Michael Pento if this means gold $10,000 is coming.

Here’s Pento’s response:

“Absolutely.  I know it sounds ridiculous, but don’t forget that back in the 1930s it was (around) $21 an ounce.  No one would ever have believed that 80 years later we would have gold trading anywhere near $1,900 an ounce, but that’s what happened. 

If you look at the rate of destruction of the purchasing power of all of the developed world’s currencies, it’s a slam dunk that gold is going much, much higher than its inflation-adjusted high of around $3,200 an ounce.

People are realising this is an unprecedented scenario where all of these countries have been put on the life support of the their central banks to perpetuate the illusion of solvency.  And when you get to that condition, there really is no limit to how high gold can go.

It wouldn’t surprise me if gold eventually goes to $10,000 an ounce or even higher because there is no limit to the productive capacity of central bankers to produce currency.  I think it would be more surprising if gold didn’t go to $10,000 an ounce.  When the US dollar loses its world reserve currency status and the US bond market collapse is in full swing, a $10,000 gold price may prove to be very conservative.”

Pento also believes tensions between Iran and Israel will escalate in 2013 sending oil to $170.

Read more at KingWorldNews.com.