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Silver Stock Report "...The math is simple: A possible high price for gold is $850/oz., times 11.5 divided by 1.823, which is $5,362/oz..."(2/21/07)

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Quote"...In past reports, I've gone over how high the gold price can go, based, in part on the high price of gold in 1980 which was $850/oz., and doing an inflation-adjusted calculation based on money-creation rates.

The way I do that is by looking at a measure of money in the banks, which is M3. M3 in 1980 was $1.823 trillion, and today, M3 is about $11.5 trillion, (source: http://www.nowandfutures.com/key_stats.html). The math is simple: A possible high price for gold is $850/oz., times 11.5 divided by 1.823, which is $5,362/oz.

Another way to get a possible high price for gold is if all of M3 were to be fully backed by the official U.S. gold horde, of 261 million ounces (if such gold still exists), the gold price would be $44,000/oz."(2/21/07)