Blue-blooded Cazenove Capital: Gold $5,000 “at a minimum”

Robin Griffiths, a regular guest of King World News, told Eric King yesterday he expects the gold price to ultimately reach between $5,000 and $10,000 per ounce “at a minimum” after a pullback  from a $400 move to a record $1,911.40.

Griffiths’ opinion of the direction and magnitude of the next major move in gold weighs heavily within the investment community, as the 40-year veteran and technical strategist at British wealth management firm Cazenove Capital Management works among investment professionals rumored for years to be  trusted advisers of the Queen of England.

He told CNBC in January, when gold traded at, what was thought to be a lofty price at the time, of $1,375, “I think not owning gold is a form of insanity. It may even show unhealthy masochistic tendencies, which might need medical attention,” adding that the dollar will be printed into “oblivion.”

Beyond Griffiths’ flare for the humorous, the point of view he put across isn’t far off from what he sees is the malady suffered by the mainstream investor at the hands of the Fed’s 98-year history of deception—a deception of fostering mislaid trust in a “modern” financial system devoid of a 6,000-year-old demonstrable trust in the value of gold as the ultimate medium of exchange.

That “tradition,” stated Fed Chairman Ben Bernanke, is the reason why the U.S. Treasury holds 8,133 tons of gold as reserves.  It was a telling response to Rep. Ron Paul’s inquiry during the Fed’s Humphrey Hawkins testimony in July into the Fed’s viewpoint on the long-standing financial role gold has played as money throughout recorded history.  Paul’s attempt to expose the Fed as a newfangled institution founded upon untested and questionable principles worked, as he brought to light that mankind has already discovered the least-flawed medium of money, gold—a simple, yet elegant tool that has been tested for a time period exceeding Christianity by a whopping 4,000 years.

Ultimately, the Fed cannot win the game of inculcation, brainwashing and other “cultist” practices perpetrated on the masses unaware of the central bank’s true agenda—an agenda which is to ultimately protect member banks from credit collapses brought on by the inevitable “irrational exuberance” among speculating bankers suffering from one of the seven deadliest of sins—greed!

And how many investors know that the Federal Reserve Act of 1913 was the response to the worldwide banking crisis of 1906-07, which wiped out the “elite” from New York, London to Paris?  Not many, and that ignorance among the American people won’t be placed at the top of any agenda at the Eccles Building in Washington any time soon.

Is it no surprise, then, that documents obtained by Bloomberg about the Fed’s activities since the fall of Lehman revealed that banks across the globe received more than $1.2 trillion in loans, while homeowners lost their homes to those very same bankers?

Maybe that’s what Griffiths alluded to with his seemingly facetious remark on the mental state of the typical retail investor who still has no gold in his portfolio.  The mom-and-pop investor must undergo some serious deprogramming, first, regarding the true definition of money, then learn the tricks played on them by central bankers who presumably do know before a rational case for owning gold can be accepted as self-evident—even at prices which today appear so high in terms of dollars.

But Griffiths believes that the gold price isn’t anywhere near its ultimate print when all the fiat dollars, euros, yen and sterling revert back to their intrinsic value—zero.

“I’m in the camp thinking it (gold) will go to somewhere between $5,000 and $10,000 an ounce, at a minimum,” he said.  “There are scenarios that take it higher than that, but it’s got many times up from here.”

Clearly, Griffiths believes that from the data the dollar and competing currencies will be debased, and debased quite substantially.  The hole left from imploding derivatives stack up into the 10s of trillion, if not 100s of trillions, according to estimates derived from the total dollar value of derivatives outstanding at the Bank of International Settlements (BIS).  Now back those numbers into the number of gold ounces on the planet.  Griffiths is lowballing.

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