by Dan Collins, The China Money Report:
“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.