Puplava on the "True" price of gold

[Master Shake]

Given the extremely high correlation between central bank balance sheets and the price of gold, it is possible to determine the implied price relative to current debt levels. In doing so, we calculate gold's "central bank balance sheet value" at around $1900 an ounce.

Full article

http://www.financialsense.com/contri...-255-per-ounce

[Starving Steve]

Re: Puplava on the "True" price of gold

We don't want anyone talking $1900 gold as fair value, if this is considered to be a buying opportunity, even in the remotest sense.

I want to see gap-filling on the chart, and there is a lot of gap-filling to do on the gold chart under $1500/oz. I want to see that for years, before even thinking about buying gold..... I want the blood on the walls.

For the next several months, I expect gold to build a base at >$1500, and then I expect a descending top and an eventual drop well below the base.... That will be just the beginning of the end, and the agony will begin.......

[Master Shake]

Re: Puplava on the "True" price of gold

[QUOTE=Starving Steve;224136]
I want to see gap-filling on the chart, and there is a lot of gap-filling to do on the gold chart under $1500/oz. I want to see that for years, before even thinking about buying gold..... I want the blood on the walls.
QUOTE]

I want my Maypo!

[jk]

Re: Puplava on the "True" price of gold

here's a piece by quaintance & brodsky that calculates what they call the "shadow price" of gold.

[lektrode]

Re: Puplava on the "True" price of gold

here's a piece by quaintance & brodsky that calculates what they call the "shadow price" of gold.

drat, jk - thanks, but too many scripts on that site for me to see it (i draw the line on setups that require too many of em to simply view something) - what are they indicating the shadow price is?

[thriftyandboringinohio]

Re: Puplava on the "True" price of gold

drat, jk - thanks, but too many scripts on that site for me to see it (i draw the line on setups that require too many of em to simply view something) - what are they indicating the shadow price is?

Near the end is a chart that shows it somewhere north of $9,000 / oz and rising nearly vertically.

[GRG55]

Re: Puplava on the "True" price of gold

Near the end is a chart that shows it somewhere north of $9,000 / oz and rising nearly vertically.

Ah, the legendary "hockey stick" price chart. I have fond memories of seeing lots of those showing forecasts for crude oil being passed around in the patch. In the early 1980s. Just before the price crashed... :-)

[lektrode]

Re: Puplava on the "True" price of gold

Ah, the legendary "hockey stick" price chart. I have fond memories of seeing lots of those showing forecasts for crude oil being passed around in the patch. In the early 1980s. Just before the price crashed... :-)

uh huh... just like CA houses and...

AAPL

[thriftyandboringinohio]

Re: Puplava on the "True" price of gold

Yes, it's a hockey stick curve. They take their favorite measure of total money and divide it by their favorite measure of total gold ounces.
Money being printed like crazy, divided by gold ounces fixed, results in hockey stick chart of dollars-per-ounce.

[Bundi]

Re: Puplava on the "True" price of gold

here's a piece by quaintance & brodsky that calculates what they call the "shadow price" of gold.

Thank you for posting this jk. I am still learning on these issues of types of money and what type of money growth implies various outcomes. This was a thought provoking read.