US Senator Sounds Alarm on $24,000 Gold

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US Senator Sounds the Alarm
on Future of Gold: $24,000 an Ounce

As regular readers know, our strategy is to buy gold and silver now when it's cheap, wait for the dollar to take a nosedive, and watch as the whole world moves its wealth into these two precious metals looking for security.

(You can review our entire plan, based on solid research by leading experts, right here.)

But is gold still cheap? And could it really go as high as $24,000?

We think so, and so do experts who've studied the way currencies rise and fall.

In fact, now a sitting US Senator is admitting it on live TV.

Late last year when the price of gold was just under $1,700 an ounce, Senator Rand Paul of Kentucky appeared on Fox Business to sound this alarm:

“There was an article this morning saying ‘Guess what, we may see $2,400 gold.' But I'm not worried about $2,400 gold, I'm worried about $24,000 an ounce gold if we finally get all this money chasing goods and have rampant inflation in this country.”

~ Senator Rand Paul on Fox Business

Senator Paul worries that the way the nation's printing press is running wild may lead to rampant inflation. And the only action that could save the US dollar, if anything, would be stopping the Federal Reserve from printing more money.

But a recent event tells us that the lid has just been blown off the Fed's printing press, solidifying the case for a much higher gold price.

This time, it wasn't the Federal Reserve announcing more “quantitative easing,” a fancy word for more money printing.

Instead it came from the United States Congress when they “temporarily suspended” the debt ceiling.

And here's the eerie reason why….


The Gold Price Seems to Be
Pacing The US National Debt

If you've ever felt the feeling of someone following you, or seen it in the movies, this scenario might seem familiar:

You check over your shoulder and see a man standing there, pretending not to have just been staring at you intensely.

As you speed up to try and get some distance, you look again and notice they've sped up too.

When you slow down and rest, you see they've done the same.

It seems they mimic every move you make, and you start to panic.

This seems to describe the relationship between the National debt and the gold price over the last 2 decades.

Take a look at the charts on the right. In 1994, the US national debt was $4 trillion, and gold was at $400 an ounce.

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In the early 2000's, the debt started to make a move, hitting $6 trillion in 2002. It was at this point that gold followed suit, starting it's climb as well.

As the national debt passed $10 trillion in 2008, gold hit $1,000 soon after.

And today, the eerie correlation remains astonishing:

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…The national debt just passed
$16.5 trillion, and while gold had a recent pullback, its 50-day moving average still hovers around $1,650.

(If you think gold is going to move a lot higher, just like the national debt, click here to review our buying strategy.)

These numbers don't always move in lockstep, but there's a reason why they seem to correlate so closely.

It's because the US dollar became the global world currency when it was literally “as good as gold.” If you had dollars, you could exchange them for physical gold at the Federal Reserve.

That was until 1971 when Richard Nixon told the world that the link between our global reserve currency and gold was finished, and dollars could no longer be redeemed for gold.

This, in a way, was our first default. And though countries around the world didn't like it, they didn't have much choice since the dollar was already embedded deep into the system.

For the time being, other nations were forced to trust in the credibility of the dollar.

But that could… And will… Change on a dime…


And That's Why the Suspension
of the Debt Ceiling is So Frightening…

Ever since gold fell from its high of $1,920 in 2011, gold has been hovering around $1,650 without making too many dramatic moves up or down.

Even with the recent pullback, gold's 50-day, 200-day, and 365-day moving averages stay within $13 of each other, showing remarkable consistency.

This consistency comes at the same time as Republicans were threatening not to raise the debt ceiling. And of course, that may be no coincidence.

It's almost as if investors were waiting to see what would happen with the debt ceiling before making a decision on gold.

Peter Schiff, author of Crash Proof, said at the time, “If we continue to kick the can down the road and raise the debt ceiling, that's bullish for gold and bearish for the US economy and bearish for the dollar.”

If raising the debt ceiling is bullish for gold, then getting rid of the debt ceiling may send the price into orbit. And now we are certain to find out.

Just weeks ago the Republicans changed course and decided to “temporarily suspend” the debt ceiling until May 18th. The Democrats quickly agreed and President Obama signed the bill.

This has never been done before. But as GoldMoney.com founder, James Turk, told King World News in a recent interview, it likely won't be the last time:

“[‘Temporarily suspend'] are the exact same two words that Nixon used in his August 15, 1971 speech announcing that he was breaking the dollar's link to gold.

“His temporary suspension has now lasted 42 years, which is the key point I am making here. This suspension of the debt ceiling is not going to be temporary. Each time it comes up for consideration, the politicians will just keep extending the suspension again and again. They will always take the soft political option.”

~ James Turk on King World News

If history is any indicator, we may never see a debt ceiling again – at least not before great damage is done.

It took just hours for the government to exceed the former $16.4 trillion debt limit, and they have until May 18th to continue piling on… before deciding whether to suspend the ceiling again.

In the end…


The Dollar Loses,
and Gold Wins… BIG

If the debt ceiling and the gold price continue to race to the top, there can only be one winner: gold. And the real loser will be the US dollar.

Once the debt becomes so unmanageable that other countries start to doubt we can ever pay it back, the temptation to print money to borrow and pay our bills will be great.

If that happens, the world will lose all confidence in the dollar.

In fact, this is already happening.

While China still buys US debt, they now sell more US treasuries than they buy. And they stopped reporting their gold purchases in 2009, even though we know they're purchasing record amounts. (Plus, they're already the largest producer of gold in the world.)

If the US national debt continues on this path and the world loses complete faith in the dollar, $24,000 gold could be minimizing reality.

And by a long shot: a loaf of bread cost $3 billion Deutsche Marks during the Weimar Republic's famous hyperinflation last century.

But there is one way to protect yourself from the falling dollar and profit at the same time. James Turk gives us the answer:

“The winners of course will be everyone who owns physical gold and silver. They will be the beneficiaries of the greatest wealth transfer in history.”

~ James Turk on King World News


And This May Be Your Last Chance
to Get In On Cheap Gold…

Today, people say they wish they would have started buying gold at $280… $400… $750 or even $1,000.

But if gold hits $24,000 like some think it will, $1,600 gold will appear just as cheap as many experts already think it is.

We are buying gold now and plan to for some time.

The Elevation Group membership site has a strategy session revealing everything you need to know about buying gold and silver… plus an extra video on what you'll need to know about taxes on precious metals.

During this strategy session you will learn:

  • Where precious metal experts buy their gold
  • How to buy gold at the lowest price.
  • Why you should always plan to keep your gold for more than a year
  • How to avoid gold scams and paying too much
  • How to limit your taxes when you sell
  • And even a little-known way to sell your gold tax-free.

If you've been meaning to buy gold and silver, this may be your last best chance to buy before precious metals shoot higher… a lot higher.

To learn more about buying gold and silver, review our special presentation today:

Get your gold and silver guidance here

Your Partner In Prosperity,

The EVG Research Team

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