Expert Sees Gold Prices Passing $10,000 If Investors Panic

The comments below are an edited and abridged synopsis of an article by Michelle Jones

Gold has been under pressure lately, but is still holding up as the latest economic data is brushed off. Investors are betting against the yellow metal, but time may be running out for the shorts, depending on how quickly things change. Daniel Oliver of Myrmikan Research, who writes about credit bubbles and economic cycles, says he sees gold prices heading north of $10,000.

Expert Sees Gold Prices Passing 10000 If Investors Panic | BullionBuzz

Oliver highlighted the many bailouts the US government has managed over the decades. He noted the credit cycle that repeats over and over. Inevitably, the Fed ends up printing money and devaluing the US dollar to bail out the speculators responsible for bubbles.

Oliver is waiting for the first sign that the current credit bubble is about to pop. He looks at such bubbles through the lens of Austrian theory, and says that whenever regulators raise interest rates, credit bubbles inevitably pop.

He’s waiting for a small bank to roll over, or reports of a rogue trader at a large bank, or a pension fund to collapse, all of which could signal that the credit bubble is over. Many large pension funds in the US are close to collapsing, so that wouldn’t a surprise.

Jones discusses the Turkish lira crisis and pension funds; looking at gold prices from a different angle; what it all means for gold prices; and time is running out for gold shorts.

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