Gold to Rise to $2,000 Amid ‘Massive’ Inflation, Superfund Says
Gold to Rise to $2,000 Amid ‘Massive’ Inflation, Superfund Says
Gold may rise to a record $2,000 an ounce in the next three years as investors hedge against “massive” inflation sparked by governments printing money, according to Superfund Financial Singapore Pte’s Aaron Smith.
“In the next few years, after the deflation cycle, we’ll see massive inflation,” Managing Director Smith, 30, said in an interview. “Soon, when you go to buy a cup of coffee, you’ll pay $20 or $30 because the dollar won’t be worth anything.”
It continues to say that silver is a good investment. Over the next 3-5 years the gold to silver ratio will go down.
So does anyone see the problem with Aaron Smith's math? If we assume that a cup of coffee today costs $2 then inflation would decrease the value of the dollar by 9/10th to 14/15th using the $20-$30 cup of future coffee. This theoretical dollar of the future is about 6.7-10 cents today. If the "value" of gold is constant, the price wouldn't be $2000 per ounce. It would be $10,000 to $15,000 per ounce. A $100,000 house today will be a cool million to $1.5 million in this case.
This is considering a very expensive cup of coffee too. So, you could very well boost those numbers by 50-200% depending on where you get your coffee.
Again, this is main stream Bloomberg reporting not Fox News. The question is, does Wall Street like inflation? Main Street sure doesn't.