When I got around to calculating the final number.
Mitigating Factors : Calculus will play a part as time alters rates of change for the better
: Gold will become worth more over time
: I used generalities but they are fairly accurate
Aggravating Factors : Calculus will play a part as time alters rates of change for the worse
: Gold production will decrease as it becomes harder to find
Amount of tangible wealth on Planet Earth: $50 Trillion
Amount of outstanding Derivate wealth still waiting to be realized: $500 trillion (Was $550)
Gold's best year of World Wide Production was 2001: 2645 Tonnes (In Decline ever since)
Price of Gold: $1400 Per Ounce
If we multiply $1400 x 16 Ounces x 2000lbs (Tonne) x 2645 = $118496000000 / Year
Assuming maximum amount of production as in 2001 to allow for conservative estimates, which is a very generous assumption. Also assuming Gold to remain at $1400 Per Ounce.
If we divide this maximum value of Gold mined per year by the outstanding Derivative Claims it would take........
4219 Years of Mining at maximum capacity to make our system whole again! I doubt there is even that much Gold on the planet let alone mining it.
Has no one stopped to understand what a Trillion is yet? Of course the Powers that be have, but you haven't!
The rise in price of Gold will be offset by the decrease in production so for all intents and purposes $1400 an ounce is a fair value in this example.
One other way to make our Financial System whole again would be to revalue Gold at 10x it's current value ($50 Trillion vs $500 Trillion)
Gold at $14,000 an ounce.
I sold my Gold last week but I plan to buy back January 1st when they are done running QE2. My estimate for Gold was $20,000 an ounce before I did this math, now I feel $10,000 an ounce is more likely. It sounds very strange to most people, but these are usually the same people (American) who have been fleeced of the very homes they live in without even realizing it. Their level of realization has been discredited in my opinion. My comments are not meant to offend, they are to infuriate you such that you will make the changes necessary to take back control of your Country!
I prefer to use the national debt plus the Fed balance sheet as the money that needs to backed by the US gold supply. So that is about $16 trillion to be backed by 8000 tonnes of gold. That is about $62,000 per ounce on a full backing. Historically, it was a 40% backing. I think 5%-15% makes sense in a non-paniced environment without an offical backing.
smoke, hear you. But those #'s are the best case. If you take z.1 and add entitlements Debt to GDP is north of 700%. If you just use z.1 without entitlements its $50 trillion +. Agree on the 5 to 15% at some point in the years to come. Probably closer to 5%, but who knows. Regardless, gold will be much higher with obvious corrections along the way.
>>There are 12 ounces in a troy ounce.
The above is not correct.
There are 1.097 (American - avoirdupois) ounces in one troy ounce.
A Troy ounce is what you buy when you buy a gold one ounce coin.
One troy ounce weighs 31.1 grams
One avoirdupois ounce weighs 28.35 grams
31.1 grams/28.35 grams = 1.097
How many troy ounces in one kilogram ?
1 kilogram of gold is equal to 32.150747 troy ounces
How many kilograms make 1 metric ton?
One metric ton (also known as a 'Tonne') contains 1000 kilograms, or 2204 pounds.
Ya I only estimated it that way as somewhere down the line and holder of a derivatives contract will want cash. They will want something. If its property then cash will be needed to buy property.
Just the overall redemption of all outstanding financial contracts is like 500 trillion so they say. I've read 700 trillion somewhere as well.
It was simply to illustrate in another fashion that the system is insolvent and even us peasants realize it now.
The only thing we can participate in obviously is the rise in Gold to multiple thousands of dollars however. The Powers that be will downplay the value of this "worthless" metal all the way until the end, while they are buying themselves hehehe.