Nick Barisheff: The Case For (Much) Higher Gold Prices

Tyler Durden's picture

Submitted by Adam Taggart via Peak Prosperity blog,

This interview was recorded three weeks ago. We've been unsure of how well-received an interview about "$10,000 gold" would be received while the yellow metal experiences its worst quarter, price-wise, in history. But rather than sit on it any longer, we're releasing it now and will trust our readers to look past the current price of gold and focus on the long-term macro arguments Nick presents. ~ Adam

Nick Barisheff, CEO of Bullion Management Group recently published the provocatively-titled book: $10,000 Gold: Why Gold's Inevitable Rise Is the Investor's Safe Haven. In this week's podcast, Chris sits down with Nick to learn the math behind this forecast.

I was reluctant to put up a number and a timeframe. And when I say $10,000 gold, I do not mean this year, or even next year. It is probably a plus or minus five years scenario. What changed my mind was in 2011, when in the U.S. there was the raging debate over the debt ceiling.


You could see that there was no political will or ability to ever change [the United States' debt crisis], because it is impossible to either increase taxes or cut expenditures enough to really make a difference. You are not going to grow your way out of it. Nobody is predicting that that is going to happen.


So the only choice left is essentially, in simplified terms, to call it printing. When you look at that, then what you get is that the printing is going to continue, the deficits are going to continue, and, in fact, they are going to increase. And the interesting point is that if you plot U.S. debt versus the gold price, you almost get perfect correlation. So this is just a straight progression. Like, if you keep printing at the rate you are printing, you are going to get to $10,000. $10,000 is by no means the peak, and people have trouble coming to grips with $10,000. But if you hit $10,000, then we are into hyperinflation, and the numbers after that will sound absurd.

In making his price prediction, Nick also takes a historical view of the perfect record of failure of paper-based currencies:

Throughout all of history, there has never been a single instance where a fiat currency did not end in hyperinflation and complete collapse. There is not one example of a successful fiat currency. Because the simple thing is that if you give a printing press, in simplified terms, to a politician, a king, an emperor, a president, a prime minister, you name it, they will overuse it every single time. That is just human nature. And that is what happens.


It is particularly a deficiency in democracy, because democracy will also always have people vote themselves a bunch of benefits that the politicians promise to get elected. And that is how you get this spiral effect that keeps going. So the end result is the same.

This time around, though, we are in unchartered territory, because you have got global fiat currencies and you have got a global reserve currency. So unlike hyperinflations in the past like, everybody knows about Germany, it was restricted to a country this time it is going to be global.


In terms of the short term, there is probably no other choice but to print more, because if the Fed pulled back in its quantitative easing, we would have a massive depression. So for the moment, you print more. But the problem is, what happens down the road?

Click the play button below to listen to Chris' interview with Nick Barisheff (39m:49s):

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Midasking's picture

Get ready for the biggest gold rush in history!!!!

Zoran's picture

Maybe, maybe not.


These charts show movements in the gold price vs a classic 'asset bubble pattern.....


The Gold Bubble is Just Getting Started!


Lets hope so anyway.

DoChenRollingBearing's picture

I had to buy the book in Canada, could not find it here (but to be fair, Barnes & Noble said they could order it for me).  Anyway, I read his book while there and discuss it:

The Juggernaut's picture


Please blow-up that ladder of tyrannical countries that have come and gone. I'd like to see how much time the new tyrants have left.

The Juggernaut

GetZeeGold's picture



Fire alert at CNBC......all hands on deck!

All Risk No Reward's picture

>>Throughout all of history, there has never been a single instance where a fiat currency did not end in hyperinflation and complete collapse. There is not one example of a successful fiat currency. Because the simple thing is that if you give a printing press, in simplified terms, to a politician, a king, an emperor, a president, a prime minister, you name it, they will overuse it every single time. That is just human nature. And that is what happens.<<

So Nick, you list 5 positions that you believe control the "printing press" and you are 0 for 5.

The international banking cartel controls the issuance of debt - which is our money supply.  They issue debt, they don't "print money."

While I agree serious inflation is almost assuredly the end game, I have a few questions that people with Nick's view can't seem to formulate, let alone answer in a rational manner.

1. Why are the front corporations lending for 30 years at 4% ahead of this hyperinflation that they will allegedly create any month now?

2. Why would the people who broke the law (Section 2A, Federal Reserve Act) to blow the world's largest bubble of any kind turn around and bail out a debt saturated world with serious inflation?

3. Why would people who control trillions in debt paper hyperinflate prior to busting the debtors and seizing their collateral?

4. Why would people who control trillions in cash hyperinflate their trillions in cash away before buying up hard assets, preferrably for pennies on the dollar?

5. When has a supranational international banking cartel ever hyperinflated away their debt monetary system for the benefit of a subservient government or its people?

Has anyone considered that Weimar was a deflation in terms of the international banking cartel?  So was the Argentinian collapse.  Stop thinking like a face ripped Muppet and start thinking like a criminal financial oligarch.

Folks, the international banking cartel controls the issuance of debt money.  Period.  Anyone who thinks they are going to hyperinflate away their wealth to the benefit of society in general has NO IDEA how the world works.  They are literally DELUSIONAL.

My belief is simply that most people who believe this have never THOUGHT about it logically.  They repeat what they've heard from Rockefeller funded Mises or the alternate media influenced by same.

The incentive for the owners of the TBTF&Jail front corporations is to bust their competition so that TBTF&Jail are the only ones left standing.  The goal is to rule the world and busting it would do that for them.

The first thing anyone should do is secure control over the necesseties of life.  This includes food, water, shelter and protection and should occur within a good community of relatively like minded folks that can work together.  This includes skills as well.

The second thing anyone should do is make sure that their first item on the list is rock solid.

The third thing to do is make sure that you limit the middlemen between you and your stuff - especially financial stuff.  Cash on hand is good, but too much is risky.  People can choose to put the bulk of their cash into Treasury Direct (short term bill, roll over into cash account, government is your "mattress").  Don't leave it there too long as that will likely get confiscated after the banks blow up and depositors are wiped out.

Money is debt - and that fact is not properly understood by many.  One under the currency can't "lose confidence" in the currency because that's the same as "losing confidence" in your mortgage, car note, credit cards, government debt, etc...

The owners of the mega banks aren't stupid, which is why they run the world and almost nobody understands this.  America IS NOT sovereign.  The tooth fairy IS NOT real.  Neither is Santa Claus.  The President isn't running the show., he's a puppet who agrees to fool the population.

Read Art of War and The Prince.  I guarantee you the banking oligarchs have, because they are waging Machiavellian Art of War 2.0 on us and we have to elevate our game.

Getr control over the necessities of life.

If you want to play a jump in gold, I recommend listening to Gary K. at Investor's Edge.  He's looking for a good entry into gold for a big play, which I doubt pans out.  But I didn't see the market where it is at now, so it could happen.  If it does, Gary K. will be in it.  If it doesn't, Gary K. will be out of the market and not eating losses.  Plus his football picks against the spread are phenomenal - like 2-1 over the two years I listened almost daily.

Gary leads off on gold on today's show...

If you have massive resources and are trying to conserve some for the "other side," dollar cost averaging into gold makes sense.  But be sure there are no middlemen and you can defend it - even from a rogue bankster controlled government.


“If all bank loans were paid, no one would have a bank deposit, and there would not be a dollar of currency or coin in circulation.

This is a staggering thought. We are completely dependent on the commercial banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money, we are prosperous; if not, we starve. We are absolutely without a permanent monetary system.

When one gets a complete grasp upon this picture, the tragic absurdity of our helpless position is almost incredible–but there it is.”
? Robert H. Hemphill

“When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes. Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.”
? Napoleon Bonaparte

Flakmeister's picture


Seriously, wake me when gold hits $1900...

And I have been stackin' for a long fuckin' time...

RockyRacoon's picture

Yup.  Flogging the $10K gold horse is not going to make the old nag arrive any faster.  I get pretty tired of the "price" of gold debate.  At $10K I fear much more than how I'm gonna spend my new found wealth.  With bread at $50 a loaf it won't be much consolation.  All the same, to me the price of bread will not have effectively changed -- if you can find any.

IMACOINNUT's picture

buy a bread maker, no not a wife/baker a machine to do the work and some ingredients and sit back. with a whole lot of other supplies, until the system gets back on line.

GetZeeGold's picture



Wake me up when they stop with the global warming BS and my gas goes back to $1.80 a gallon.


Yes.....I did just freakin say that.

Flagit's picture

until the system gets back on line.

you mean, like the power to come back online...for your bread maker?

francis_sawyer's picture

Dumbest ass idea ever [buying a breadmaker]...


There are about 1000 different ways to make bread... A breadmaker [besides needing power], offers you very few of these options...

Croesus's picture

Build a a brick oven in the backyard, and buy flour, yeast, herbs/spices.

You will get a product that is FAR superior to ANYTHING you will get in a store.


Croesus the Hobby Baker.


P.S. - The "Price of Gold" is irrelevant, to me. At the end of the day, it only matters whether or not you have it.

Thin_Ice's picture

Dutch Ovens work well for bread making too. Here's a few alternatives as well...

Croesus's picture

@ Thin Ice:

Great Share, thank you Sir!


Thin_Ice's picture

You are quite welcome, glad you like.

Crash N. Burn's picture

Flogging the $10K gold horse is not going to make the old nag arrive any faster.  I get pretty tired of the "price" of gold debate.


Agreed, pricing gold/silver in fiat is their game. Supply and demand, not so much:

"bullion-buyers in London must now wait more than 100 days to take delivery of the bullion for which they have already paid.

The comedic drones at Bloomberg, and officials of the London Metal Exchange itself would have us believe this is due to “warehouse queues.” While precious metals bulls undoubtedly appreciate the imagery implied of a 100-day line-up of armored cars waiting to load their bullion – in the middle of this “bear market” – the implication is fallacious....

In an era of just-in-time inventories; the notion that there can be a 100-day backlog to load bullion into armored cars with the metal already sitting in the warehouse is ludicrous. Clearly what the LME is really reporting here is a greater-than-three-month delay to refine the gold (or silver) being purchased here – and then ship it to their warehouse.

In other words, the “bullion” which traders believe they are purchasing today is in fact merely ore which hasn’t even been dug out of the ground yet."

Fraud Confirmed: 100-Day Delay To Take Bullion Delivery In London

overmedicatedundersexed's picture

crash, 100 days wait for london gold, Germany just went ape shit they get the 7 year deal, but no one questions this but gold bugs..there is no gold in safe keeping by banks and .gov, seems a good explanation, anyone got another reason for delays?? lets hear em.

overmedicatedundersexed's picture

their dog ate it, mon dieu non, the dingo ate the baby.

Crash N. Burn's picture

Their dog ate it?


 A "dog" was involved:

"Indian bullion-buyers are notoriously price-conscious. So the recent, unprecedented rape committed in the paper-gold and paper-silver markets has been nothing less than a dinner-bell “chime” for Pavlov’s Dogs.

Gold and silver on sale…at (literally) once-in-a-lifetime-prices."


Gold-Squeeze In India Stokes Silver Demand

Panafrican Funktron Robot's picture

"At $10K I fear much more than how I'm gonna spend my new found wealth.  With bread at $50 a loaf it won't be much consolation."

How do you know that bread will be $50 a loaf at $10K gold?  In the run-up from $300/oz to $1900/oz, did the price of bread go up 633%?  Did the price of anything go up that high?  

There is a relatively weak correlation between the price of gold and price inflation in other goods (as many gold bears accurately point out).  If the USD went to gold backing at, say, $100K/oz, I don't think this would actually cause price inflation in other goods; it would simply set a grounding mechanism for the dollar to something of tangible value.  The argument that gold would be an inefficient grounding mechanism due to there being "not enough of it" are ignoring the fact that the USD could be arbitrarily set to any number as an exchange for an ounce of gold.  

RockyRacoon's picture

I pulled the $50 number outta a very dark and uninviting place.  It was to make a point only.

You are correct that the "price" of gold will be based upon one's acquiring the scarce metal with fiat dollars, not much upon the relation to the "price" of anything else.   One does find, however, that the two move in tandem.  The degree of correlation varies.  There is always enough gold, as you say.  If you stop any random number of people at your local mall and ask them why they are not buying gold hand over fist you'll get the same answer: "It's too expensive."   That was the case in any given year... period, no matter what the price was.

All Risk No Reward's picture

You just explained why the majority move in gold IS NOT dollar devluation.

So, what is it?

The majority input is speculation.

Rimon's picture

Seriously, the guy works for Bullion Management - so pitching gold is directly correlatted to his business model..

There is no analysis here just: printing *foaming at the mouth*, fiat currency *foaming somre more* = gold going to badjillion dollars!



what a joke

Freegold's picture

Here's my analysis: By gold now for dollars you don't need until retirement. Until retirement dream of all those dollars fed to the rest of the world for decades.

It's going to be a golden retirement cos this dollarbubble sure as hell wont last that long.

Ghordius's picture

"dollars you don't need", aka savings - I'd only balk at the advice of putting all your eggs in the same basket - gold has this "evil" propensity of slipping off weak hands

ATM's picture

Gold is going to be repriced. It may not be repriced before or during my retirement. I don't have the chrystal ball that tells me when it  will hapen but I beleive it will happen in the next 20 yrs. I may not be alive then but the family knows that they aren't to sell any gold that wasn't lost in the accident until they know it is the right time.

It will be the right time at some point.

BullionTweet's picture

Sad to see such a comment from someone who has very obviously not taken the time to become informed by reading Nick Barisheff's new book first. Do your homework and contribute something useful.

HulkHogan's picture

You're obviously Nick Barisheff.  Fucking metal dealers.

SqueekyFromm's picture

Optimism is such a HAPPY thing!!!

(OH, am I a sarcastic bitch or what???)

Squeeky Fromm, Girl Reporter

kito's picture

Sqeeky what's your deal here? I may not agree that gold is the panacea like many on here....but one thing that I have in common with the pro-gold group on zh is how fucked our financial system and country is due to the brazen manipulation and collusion by those pulling the strings......and for that reason alone I stand with the vast majority of members here.....Wtf do you stand for except for being a thorn in the side of people on zh who are fed up with the direction of the country and feel gold plays an important role in protecting themselves from their perceived endgame....your posts are obnoxious and quite frankly counterproductive......I've been here over two years and your inane anti gold poems are all that we see....what draws you here?????

Bay of Pigs's picture

That's a good question kito.


SqueekyFromm's picture

That's easy! Helping to keep some poor schmuck from buying gold under the nonsensical belief that it is going to $10,000. And, because I love the ploppy sound that bull poop makes when you stomp on it with both feet!!!

I think that a person can be fed up with things without resorting to matching tennies, swallowing funky koolaid, and then laying down to wait on the Mother Ship. Because really, how much good are you going to accomplish when you conflate:

"Our current system and TPTB suck!"


"Buy some gold (that's going to $10,000!!!) as your way of resisting TPTB!"

I mean really, why don't you just advocate some self-immolation or something. That way at least the familes will have some fiat left to go bury the ashes.

Squeeky Fromm, Girl Reporter

RockyRacoon's picture

Your concern for our well-being is greatly appreciated.  Without your insightful work I might have been drawn into buying some of that barbarous metal -- wasting my fortunes in the process.  Thank you so much for your invaluable guidance!

Now, excuse me while I go puke.

GetZeeGold's picture



Who gets the burly beef......and who gets the bitch smackdown?

kito's picture

Your ostensible altruistic motives are disingenuous.....the tone of your posts prove still havent given us your take on the direction of the system and what a person should be doing to protect resemble the classic mudslinging lower realm politician who attacks but never offers his or her own solution to the ills of the world.......

chindit13's picture

Squeeky is no more "altruistic" than all the clowns paraded out increasingly regularly on ZH who are willing to sell us something for $1250 fiat that is 'probably' going to $10,000 in five years or so.  If this latest gold shill is correct, then I wonder where he thinks he can beat his own prediction of a compounded 51% yearly return?  Why doesn't he just clutch his shiny and wait for the collapse instead of trying to 'help' us all out in exchange for our worthless fiat?

This Barisheff shill chants the old line about "there has never been a single instance where a fiat currency did not end in hyperinflation and complete collapse".  That overlooks the 180 forms of fiat currently in use and accepted with pleasure by most of the 7 billion souls walking this Earth.  Yes, eventually all those fiats will go by the wayside, but one could make the same argument for the folks using it.  There has never been a single instance where a human life did not end in death, but we all try to make hay while the sun shines (on us).

Anyone over the age of ten can remember these exact same arguments being championed by Nelson Bunker Hunt and his followers back in 1980.  He beat the dollar to the grave, and he saw his sure thing drop 94% from his top tick purchases.  Statements such as $10,000 within five years sound desperate, as if the tumble from $1900 to $1180 might have hurt Barisheff's business.  Maybe Squeeky's function is to provide some balance, because at least on Zerohedge PMs are a very crowded trade, and the constant drumbeat of "any second now conflaguration" has enticed a lot of readers into something that hasn't done them much good up to now.  Sure, we're all adults here, but if people believe the constant drumbeat on the MSM can lead the sheeple astray, then the constant drumbeat on ZH similarly can lead people astray.

Articles like this are just trying to make people feel good about their losses.  Absolutely nothing new is added to the argument, and they are all thinly veiled infomercials.

IridiumRebel's picture

How do I protect my family Chindit13?

For the record, I deeply respect your posts even though they largely counter some of my beliefs in "protection". Gold is not a trade for me. I just want to protect my purchasing power. I have about 15-20% of my savings in PMs and the rest cash with a little in bonds and stawks.

jimmyjames's picture

 Maybe Squeeky's function is to provide some balance, because at least on Zerohedge PMs are a very crowded trade,


Yes... all 10,000 of us (high estimate) out of 7 billion souls (your words)

bunnyswanson's picture

We're barely able to pay the overhead.  Though most probably, if I had the money, I'd certainly be the highest buyer of you all.  My investments once made it possible for me to leave a bad marriage.  For now, I have to sit on the sidelines and applaud.

buyingsterling's picture

Something new is added here. The point is driven home that this cycle is another cycle characterized by certainty, in spades: Everything is utterly broken except for PMs - the political and financial systems will not be reformed, hence $10k gold is a certainty. And the lack of reform will insure that $10k gold arrives sooner rather than later. As in Zimbabwe, gold will eventually go to infinity because this fiat currency, like all others, was born to die. $10k is just a stop along that road, and gold's purchasing power will still be potent at $10k. Bread will be $5-$10 a loaf, not $50. If bread is $50, gold will be $50k because we'll be at the end game.

HulkHogan's picture

From where I sit, bread is close to $5 a loaf. Where's your $10K gold at?

Panafrican Funktron Robot's picture

That's some fancy bread you're eating there, Hulk.  Which is fine, but "bunny bread" still costs $1.50 at Kroger.

RockyRacoon's picture

That's not "bread".   It's a concoction of chemicals and a bit o' bleached flour thrown in for color.

BooMushroom's picture

A loaf of sourdough is pushing $4 for sure. Check your bread for cellulose (aka sawdust) or other fillers. Look for baking powder: if they're using it, it means they aren't giving the yeast enough time to rise properly, making it cheaper for them, and less wholesome for you. They probably use a bunch of other fillers, HFCS, and a couple chemical stabilizers.

It's the difference between mozzarella and "pasteurized process cheese food."

Panafrican Funktron Robot's picture

I agree with what you're getting at chindit, it's important to know that large spikes in the USD price of gold is one possibility among many.  Some common sense wisdom to consider when deciding how to protect the excess wealth from your productive labor:

1.  You can't predict the future.

2.  Don't put all your eggs in one basket.

It's really strange how many people (yours truly included) manage to fuck up due to not following these two simple points.