Gold Will Plummet to $500! Charles Ponzi and I Believe It.

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Gary Christenson - Deviant Investor

Yup, that is the story. The following arguments explain why Charles and I think gold will plummet to around $500 per ounce. Also, after my luncheon date with Elvis, I have a large bridge for sale. If you are interested and willing to make a SERIOUS OFFER, see below.

The price of gold has roughly followed (up, up, and away) the growth of the U.S. national debt since 1971. The national debt is rising like 8% per year or like $1,000,000,000,000 per year. But don’t jump to the conclusion that gold prices will continue rising along with the debt! Charles Ponzi and I have faith in congress, lobbyists, and the sincerity of the budget process. We believe the national debt will rapidly fall due to the positive economic stimulus from ObamaCare, from actual budget cuts, and therefore gold should drop to new lows. Mr. Ponzi thinks it could go real low – like $450 or $500.

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The other day an out-of-work economist friend and I had lunch. He is a bright guy and he used to work for one of them central banks, or maybe a rating agency, or the IMF. Anyway, the subject of economic forecasting came up, he got this “far-away” look in his eyes, and he started babbling. Perspiration formed on his forehead, and his left eye started twitching. The mood was weird, like really, really strange. I ordered a fourth martini for each of us and gently suggested, “Show me how it is done.” He pulled out a handful of bones from his coat pocket and tossed them onto the table. He babbled something about magic Emu bones from the 19th century. Then his eyes bugged open wide and he started panting. He studied the bones for at least a minute and then pronounced, with a slur in his raspy voice, gold will drop to $496 by the end of 2014. Now folks, that was the most compelling forecast I have ever heard. Gold is going much lower, say to $496, fairly soon. Believe it!

It has been widely reported that nearly 50,000,000 people in the U.S. are receiving food stamps or, as it is now called, the SNAP program. I figure those people need the program to help buy food, and that means their job market is still weak. No jobs, no excess cash. No excess cash, no gold purchases by food stamp recipients. No gold purchases, and the price drops. Simple! This is one more reason why the price of gold will drop much lower – back down to the $450 – $550 range.

I read that the recent agreement with Iran was a breakthrough in middle-east politics – sort of a win-win for all parties involved, except for maybe the native tribes of northern Canada. I checked my perception with a bartender friend who works in D.C. where congressional staffers get drunk and hustle lobbyist funding. Based on what he overheard from staffers, he agreed. But I needed confirmation, so I called the White House and read several editorials in liberal newspapers and they all confirmed the triumphant break-through. Stay with me here! If the mid-east problems are solved and the political premium on the price of crude disappears, then gasoline will be a lot less expensive, people will have more confidence in the economy, and, like totally obviously, they will sell gold and buy lots more stuff. I figured I had another big winner – sell gold, sell oil company stocks, and buy consumer stocks. This new mid-east agreement is another big reason why I think gold will drop below $550 per ounce in the upcoming year.

Congressional approval ratings are so bad that I bet I can find more people who have had lunch with Elvis than who think congress is doing a bang-up good job. I figure it is high time for Elvis to make a comeback national tour and for congress to better manage the economy and the dollar. Hence, gold should drop to new lows. Look for $450 – $500 and a new Elvis love song.

Everybody knows the Chinese have been buying all the gold they can grab for the past several years. Even with all their buying, the price of gold has dropped a bunch. Now this is simple – if the price dropped when the Chinese were aggressively buying, how much further will it drop when they slow their buying or totally stop buying gold? Why do I think the Chinese will stop buying gold? Simple – they have bought so much in the past five years, they gotta stop soon – the world might even run out of gold. I figure 2014 is the year they give up on gold purchases and that will cause the price of gold to plummet, maybe even below $400.

I also saw an article in a newspaper called the “D.C. Rag” about a new gold rush. The story ranted on about this scandal of insider democrats buying land in California. They didn’t want the land but they wanted the massive deposit of gold that had been recently discovered there in a shallow mine. The “Rag” mentioned that the only problem was the area was overrun by the native Sasquatches, but I’m confident those congressmen will figure something out and get the gold. More gold mined, more supply, lower prices! This stuff is not difficult. Gold is going down!

So there you have it! Gold is gonna drop hard in 2014. Why? Simple! The national debt will go down because Charles Ponzi believes ObamaCare is a good plan and that congress will cut the budget and actually produce a surplus, a weak job market is limiting gold purchases by the people on food stamps, an economist predicted that gold will drop to $496 in 2014, we expect peace in the mid-east, the Chinese will reduce their purchases of gold in 2014, and a new supply of gold has been discovered in the Sasquatch zone of California. I figure it is “an open and shut case.” Gold prices are going through the floor, and I just proved it, with help from Elvis, Charles Ponzi, my economist and bartender friends, and simple logic.

Now, about that bridge I have for sale, I can give you a 30% discount if you act today. Serious offers only! Send your information requests to:

GE Christenson
aka Deviant Investor

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41 thoughts on “Gold Will Plummet to $500! Charles Ponzi and I Believe It.

  1. The only way such gold prices could be justified is if the lions share of all currency and credit in the world and the price of financial assets and property in the world imploded and damned near disappeared altogether. Even at it’s peak price gold and silver prices were hyper deflated relative to all these things. Frankly $500 an ounce gold is not credible.

  2. Gold could continue its wild ride as long as the system is set up that allows the Fed to indirectly sell tons of gold that doesn’t exist using dollars that can be created by the trillions out of thin air. Its interesting, but we are really witnessing a de facto gold standard in action. Gold is moving away from countries that are bankrupt to countries that produce more than they consume and are amassing wealth. Its not being done voluntarily through agreed upon law regarding international monetary settlement, but instead is being force on all parties by the financial markets. You can’t hold back the ocean forever!

    • Very interesting comment. I think you are correct. Gold is moving east, and the process is accelerating due to the artificially repressed gold prices. This will not end well for those of us in the western world.

      GE Christenson
      aka Deviant Investor

      • You’re absolutely right. The Fed’s attempt to prop up the dollar and punish those who don’t believe in fiat currency by suppressing the price of gold is really playing into the hands of those nations accumulating gold. It is accelerating the transfer of gold from West to East. I’m a firm believer in the Golden Rule. If I were in charge of the Fed and had the ability to create money out of thin air, I would convert as much of that imaginary money into physical gold as I could before people caught on to what was happening. Yes this would drive the price up, but it would also discourage other countries from accumulating it. Plus it would put the U.S. in a very favorable position to enact a gold standard when this whole global fiat money system comes crashing down, and until then fend off other nations (i.e. China/Russia) from trying to enact a gold standard based on their currencies in an attempt to destroy the dollar.

  3. Excellent analysis
    You should be next noble price winner
    Obama got one – I don’t know what for, but for ObamaCare he should get the second one.

    The bridge is real or just planning stage.

    • Thanks for your comments. The bridge is as real as government accounting and the benefits of ObamaCare. I’m getting a number of inquiries. Do consider sending a bank wire. I’ll accept dollars, Euros, Yen, gold, silver, and bitcoin. I”ll pass on a Nobel prize. But thanks.

      GE Christenson
      aka Deviant Investor

  4. They keep telling the big lie because at least 30% of the American Public are brain dead zombies and will believe anything they are told by the socialists. Another 20% are weak and afraid will go with whoever threatens them. That’s how the socialists got elected.

  5. Yes, gold will indeed drop well into January 2014. But my feeling is that your $500/oz prediction is excessively low; you probably will do better looking at $1,111/oz gold. Then, maybe even $2,222/oz gold in 2015.

    I understand why a bridge is up for sale. Most of us walk on water, so we need no stink’in bridges – – or is it bredges? I wonder how much it weights? Can you deliver by Xmas?

    • Larry Edelson thinks we will see a low in January. Maybe. I think the odds are a bit better that we have already seen the lows. We wait. I can easily believe $2,222 by 2015. I think the rally up will be spectacular. The bridge is for sale, as is, where is. Sorry, I can’t deliver.

      GE Christenson
      aka Deviant Investor

  6. I’m quite interested in your bridge for sale.

    My offer stands at 100 million deutch marks.

    . My currency is from 1922.

    It’s a very generous offer, let me know your decision.


    • I am quite interested in your offer to buy the bridge. My counteroffer is 100,000,000 Euros or preferably the equivalent in gold coins. I’ll offer an additional discount of 20% for gold coins, good delivery 400 oz bars, or 1 kilo bars acceptable to the Chinese Central Bank.

      GE Christenson
      aka Deviant Investor

    • Mr. Ponzi: one theory is that he works at the Federal Reserve in the back office. I think he punches buttons as he creates dollars on the computer screen. But don’t worry, it is all legal and sanctioned by congress. Really, what could go wrong?

      GE Christenson
      aka Deviant Investor

  7. Gold already dropped hard in 0214 of this year..The fact that you mentioned 2-0-14 the 0 means it will not drop at that 0 means they are all out of gold to manipulate. The Taper Tiger will lead to a Paper trigger of this entire Ponzi scheme.

    • I’m not certain I follow you. But what I do agree with is that a “trigger” event is coming. It might be the taper nonsense or a dollar collapse or a geopolitical event. But a big move up is coming.

      GE Christenson
      aka Deviant Investor

  8. When gold drops below $800 gold-specific mines will close, or turn to base metals found in the same mine. At $800 an ounce coin shop owners will hide all their bullion and sell only stamps and numismatics that they can hike the price up above the spot price.

    In my opinion China will never say “enough” on gold because their leaders take the long, decades-long view, and even with a new world reserve currency backed by gold, individual Chinese leaders will want to have their offshore gold accounts, and will deal in physical, not paper.

    What all this fiat currency theater has done is erase physical commodities from the American groupthink. You can’t pay your property taxes in gold, or silver, or copper, or aluminum, nor would you want to at these suppressed prices. A million dollars doesn’t buy the McMansion that it used to. The bar between the haves and the have-nots is being raised to stratosphere heights on a mountain of paper currency, fraud, and lies.

    Our leaders are addicted gamblers at the roulette wheel, endlessly doubling their bets and pulling money out of other people’s pockets to cover their losses as the wheel spins. Will no one stand up and throw them out of the casino and into the jailhouse?

    Deflation (suppression) of commodities to worthlessness with necessities being inflated past the level of purchase by 99% of the population never lasts long. Not without guns and tanks, and then only while the military remains isolated from such inflation/deflation (see Imperial Rome with senators and soldiers being paid in gold, with everybody else in devalued coins; see John Law’s assignats in France; see modern-day Zimbabwe). I just ask how long the fantasy can continue until someone pulls the curtain away from the Wizard of Oz.

    • Definitely! It is a wonderful bridge, in a great location, with lots of “curb appeal.” I can imagine that you will be very pleased with it. And I will be completely happy with gold. Let’s make this deal happen!

      GE Christenson
      aka Deviant Investor

      • I’m short of gold, but I offer my wonderful Trevi fountain (lots of dimes included!)in exchange. Hurry up! dont miss this bargain

        • Sorry. Not in the market for fountains or paper gold – especially on the short side. But I do appreciate your offer. A bridge might be a great addition along side your fountain. Do consider it.

          GE Christenson
          aka Deviant Investor

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