The Real Price of Gold Keeps Going Up

With the ratio of paper money to gold and if the gold is about constant and the paper money keeps going up then the implied price keeps going up. So if you called me a year from now I’d have to do the math, but it might be $10,000 an ounce and that’s assuming 40% backing.

But what if you had 50% backing or 75% backing? So now you’re talking about $15,000 or $20,000. The numbers just keep getting bigger and they’re not made up. They’re not numbers that I pull out of a hat to make a few headlines. These are the actual numbers you get when you do the math.

- Jim Rickards via a recent Sprott Money Interview:

http://www.sprottmoney.com/news/ask-the-expert-james-rickards-march-2014