Harry Dent is an author and financial analyst who uses demographics to predict consumer and business trends. His website is dentresearch.com.
James Rickards is the Editor of Strategic Intelligence, and has authored a number of books, including The New Case for Gold and The Death of Money. His website is: jamesrickardsproject.com.
Harry Dent is predicting the price of gold to fall to $700 per ounce.
James Rickards predicts the price of gold to reach up to $10,000 or more per ounce.
With an economic crisis or stock market crash, deflation could bring the prices of many commodities down. Possibly even gold. But gold going down to $700? That's hard to believe. But looking at the gold charts, up until the end of 2005, gold has been priced below $550 per ounce (with the exception of a price spike up to $750 in 1980). So $700 gold doesn't seem so far fetched.
Under normal circumstances, looking at demographics, I think Mr. Dent is right on with many of his projections. I just think it's different this time, because the governments and central banks have corrupted the entire financial system with fraud and incompetence ... having printed money out of thin air by the TRILLIONS of dollars and bringing interest rates to near zero - or NEGATIVE RATES, as is happening in Japan, Sweden, Switzerland and Denmark.
As a ponzi-type economic system begins to crumble, I would think a modest-percentage move from the paper bond-stock-etf markets into physical gold and silver would not only support a strong bottom, but could cause the prices to skyrocket.
So, will time prove Harry Dent to be right? I'd say maybe half way. If the price does drop, I can't imagine it going much below $900 to $1000. And, if it does hit $700, or even $800, I'll be ready to buy in, big time.
While Harry Dent might end up being proven right, or partially right, I also think Rickards' projection could be proven correct - but only at a later date. So, Harry's projection would have to come true first, because if gold hits $5,000+, I can't see how Harry's prediction would ever be possible again. And all of this could take place between now and 2021.
How could James Rickards be correct with $10,000 gold?
That's an easy question to answer. It's not that gold will be "worth" $10,000. It will be that the US Dollar is worth a LOT LESS! And that's what could happen with hyperinflation. That's why buying gold is a "flight to safety" or "insurance" against a falling currency.
Just look at what happened in Venezuela. At the beginning of January 2010, the Venezuelan Bolivar was worth about 46 cents. Today the Bolivar is worth about 9 cents - an 80% loss in value in just under 8 years.
In January 2010, someone could have used their Bolivars to purchase gold at about $1140 per ounce. Today, that gold would have increased in value by about 14%. Instead of losing 80% of their savings in devalued Bolivars. Thus, gold would have insured their wealth.
Some experts and analysts are saying that stocks are very much overvalued with a lot of downside risk, and that gold and silver are safe havens with a lot of upside potential.
Should you take flight to safety or look to insure your wealth? At least some of it?
Unfortunately, I'm not a financial expert or advisor and I don't know your particular situation, so you'll have to answer that question yourself.
GOLD PRICE REFERENCE:
http://goldprice.org/
Nicely summed up. I followed both of them.
But somehow I'm more inclined to Rickards.
awesome