Thursday, November 14th 11:38 AM IST

Gold could rebound to hit $10,000 an ounce: Nick Barisheff

# gold  # central banks  # US dollar  # assets  # currency  # US Fed Reserve  

History also shows that gold has retained its purchasing power compared to any other asset class in history. For eg. a compact car would have cost 66 ounces of gold in 1971, the year President Nixon closed the gold window and 10 ounces of gold in 2012.

TORONTO (Bullion Street): Gold could rebound to $10,000 an ounce after bottoming out in 2013 if there is a repeat of the 1974-76 phenomenon when gold rose by the same percentage as its 1976 low to 1980 high, according to Nick Barisheff, Founder, President and CEO of Bullion Management Group Inc (BMG).

Gold is migrating to the East. China has a stated target of 10,000 tonnes of gold, and Fed policies of gold price manipulation and artificially low interest rates will make this goal attainable in the coming years. This is why many feel China will hold the world’s next reserve currency, Nick Barisheff said.

At the recent Toronto Austrian Scholars conference here, Nick Barisheff said that Central banks who are the largest holders of gold but take public posture against owning the metal. The fact is that the gold holdings are only on paper and western central bankers have been involved in the practice of leasing, swapping their gold holdings for decades. Whatever, gold is held in the vaults at the Federal Reserve Bank of New York and even in Fort Knox through hypthecation and re-hypothecation, has several claims to ownership.

History also shows that gold has retained its purchasing power compared to any other asset class in history. For eg. a compact car would have cost 66 ounces of gold in 1971, the year President Nixon closed the gold window and 10 ounces of gold in 2012.

Since 1913, US dollar has lost 96% of its purchasing power when measured against gold.
History shows that global currencies beginning from POrtugal's in 1400's have lasted 100-120 years and subsequently faded out due to governments abusing the privilege and creating too much debt. Spanish currency lasted 110 years, Dutch 80 years, French 95 years, British Pound 105years (1815-1920).

The build-up of massive amounts of debt will result in the end of the U.S. dollar as the world’s de facto reserve currency. This should come as no surprise, Nick Barisheff said.

The U.S. dollar succeeded the British pound, but its peg to gold was broken domestically in 1933, and internationally in 1971, when President Nixon closed the gold window. This resulted in unrestricted and exponential debt creation that will likely see the U.S. dollar’s reserve currency status end sooner rather thanlater. The Fed was born in the golden age of industrialism, when fortunes could be made with no income tax consequences.

The Fed has many reasons for being at war with gold:1. Gold restricts a country’s ability to create unlimited amounts of fiat currency. 2. The gold held by the Fed and the United States has not been officially auditedsince 1953; there are several credible indications that this gold has been leased or swapped, and probably has several claims of ownership. Germany’sBundesbank was told in January 2013 that it would have to wait seven years to repatriate 300 tonnes of its gold currentlyheld by the Federal Reserve Bank of New York. The only plausible explanation for this delay is that the gold is not available. 3. Gold is the only money that existsoutside the control of politicians and bankers. The Fed would like to control all aspects of the global economy, and gold is the last defense of the individual whowishes to protect his or her wealth.

(Nick Barisheff has published a book titled $10,000 Gold-Why Gold's Inevitable Rise is the Investor's Safe Haven. It shows the direct correlation between debt and the rising price of gold)

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