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Jim Rickards Tells CNBC's Joe Kernen Gold Is Going To $5,000
Ealier today Jim Rickards of Omnis, formerly LTCM's GC, was on CNBC and was subjected to some "probing" questions by Joe Kernen in which the anchor asks Rickards if he is a "conspiracy theorist" for his recent insights into the potential investigation of JP Morgan's market rigging behavior by the DOJ. Rickards replies that he isn't, and follows it up with some gold price target observations based on "8th grade math": the former LTCM man sees gold going up by at least 10 times, and hitting $5,000 rather easily. We wonder if to CNBC there is any uglier word than "conspiracy theory" even when the "theory" is backed 100% by facts.
Full exchange between Kernen and Rickards:
Joe Kernen, “Jim, some of the craziest viewers I know send me stuff that I think is from you. I’m just wondering if it’s the same Jim Rickards? Are you a conspiracy theorist on silver manipulation, that it’s being controlled by JP Morgan?”
Jim Rickards “I’m not a conspiracy theorist. I gave an interview I was asked to respond specifically, I’m a lawyer also and I was shown correspondance from the Justice Department, Anti-Trust Division of the Justice Department to someone who wrote in enquiring...my comment was that it was an unusual communication because the Justice Department specifically named JP Morgan. Instead of saying thanks for your letter, they said we’re looking into the JP Morgan alleged actions and they went on to say we are not going to refer to the CFTC, we’re going to look into it ourselves. I thought both of those things were unusual.”
Joe Kernen“So you’re not necessarily saying that gold and silver would be 1,000 times higher if free market forces...?”
Rickards “No I am saying 10 times, I am saying gold will get to $5,000. It’s 8th grade math. Just look at the amount of gold and the amount of paper money, do the division, that’s where gold has to get to.”
For those who wish to hear Jim Rickards
recent must-hear interview with Eric King of King World News, in which
Jim shares his insight into the DOJ investigation of JPM, here is the link.
Full clip here.
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From my understanding, banks and hedge funds are as long as you they can reasonably get on gold. I think people misinterpret sold a swap as being short instead of being a party that originated a swap and that leads people to think that banks are short to their toes on gold. They are dreaming of finding suckers who would buy gold at top prices - just like houses.
Repeat after me. Gold is an asset. Gold is an asset class. Gold is an asset class.
Cash is an asset class. Real estate is an asset class. Metal miners are an asset class. Web companies are an asset class. etc,etc,etc.
Different asset classes are right to own at different times. Some people don't get that cash is a valid asset class at times, they insist on being in stocks, any stocks when they shouldn't at all times. Some people insist being only in real estate, others gold. Nothing but an asset bubble.
But you neglect to mention that gold is ALSO money -- the ULTIMATE money.
And so what is your point in the rest of your post --- that sombody is claiming that gold is the ONLY asset ever worth holding? I know of nobody who has ever made such a claim. There are times, however, when gold is the pre-eminent financial asset to own, and we may very well be coming into just such a time, or indeed already be in one.
In any case, it is ludicrous to proclaim that gold is in a "bubble". I know of no bubble to have ever occured in any asset that was so maligned, mocked, and ignored by the financial "mainstream" as gold has been. And yet curiously, when everyone and their brother were predicting "real estate values to the sky!" a few short years ago, and when the vast majority of the public WAS involved in that market, where were all you bubble callers then?
I did not mention that because I do not believe that gold is "ULTIMATE" money.
>where were all you bubble callers then?
We were shorting crap like X, oil, FNM, C, LEH and others
>I know of no bubble to have ever occured in any asset that was so maligned, mocked, and ignored by the financial "mainstream"
Everyone is in gold with both feet to the toes. Where have you been in the last 3 years?
You have a bizarre definition of "everyone".
Since when does 1% (or even less) of the American public constitute "everyone"?
If "everyone" is in gold today, what percentage were in real estate five years ago? 1000%?
I think you have some problems with basic mathematics.
Care to tell us just what you would consider the "ultimate" money? Paper?
Becky Quick is a complete moron.
With the dow down 230 points, at least it bounced off a "key technical level" ? Are you serious?
And she didn't even mention what that level was and why it's so key.
Just another example of the useless bullish garbage that CNBC puts out there every day.
Hey Mako - where is your avatar? Shouldn't you have a little federal building, or an obelisk or something?
the same crew . with out a doubt the most clueless Keynesian's of all/
with all the emperical evidence going against them.. the run from 250.. and going higher ,
its like a group of weldibests standing on he sand . believeing the king can order the tide not to come in.
time will bring an end to these obnoxious posts about gold ..
this was the same talk at 400 gold .
not enough sand in their brains to fill a pizz pot that is allready full of manure
FWIW, i believe dumpster is pro-gold (as am i). that post had me scratching my head for a second.
"believeing the king can order the tide not to come in." - spot on. not if, but when.
+100
there's "hope and change", and there's math.
New item in your series of interest:
SDR Valuation as of May 06, 2010
Disclaimer: The International Monetary Fund makes no warranties, express or implied, regarding these tables or the performance of this site. The Fund shall not be liable for any losses or damages incurred in connection with this site.
http://www.imf.org/external/np/fin/data/rms_sdrv.aspx?Month=05&Day=06&Year=2010&submit=Submit