This page has been archived and commenting is disabled.

Martin Armstrong - Gold Bullion To “Max Out At $5,000 Per Ounce”

GoldCore's picture




 

Martin Armstrong - Gold Bullion To “Max Out At $5,000 Per Ounce”

- Fall 2015 turning point - civil unrest and riots globally says forecaster Armstrong
- Fed have to raise rates - due to pressure from congress and media
- By 2020 the cost of servicing U.S. debt will outpace defence spending
- European banks will collapse and “blood in the streets”
- Higher rates will also devastate emerging markets who have issued dollar-based debt
- Gold to “max out at $5000 per ounce”
- Advocates diversification and holding bullion coins familiar to public such as $20 gold coins
- “Your portfolio has got to include everything … including bullion”

Renowned financial analysts and trends forecaster Martin Armstrong has said that gold will “probably max out at $5,000 per ounce” as “people lose confidence in government” and that we will see riots and unrest globally in the coming months - the fall of this year.

It a very interesting interview with Greg Hunter of the excellent USAWatchdog.com, Armstrong says: 

 

“Gold rises when people lose confidence in government.  It has nothing to do with inflation.  So, when you start to worry about government is not going to survive or who’s going to win, that’s when gold rises.  Short term, we still have the risk of it going under $1,000 per ounce.  It’s going to flip when everything is right.  It will probably max out at $5,000 per ounce. . . . You are really talking about a major reset coming.  300 years ago, that was the revolutions against monarchy.  Today, it’s going to be revolution against . . . pretend democracy.  We do not have a democracy.”

We would slightly disagree with this as research and the historical record shows that gold is a hedge against inflation - particularly virulent inflation as was seen globally in the stagflation of 1970s and the litany of hyperinflations seen in the last 100 hundred years.

Martin Armstrong was accused of running a $3 billion Ponzi scheme and served  11 years in jail under house arrest, including a possible record seven years for contempt of court in a dispute over gold and antiquities. He is a former financial adviser who was Chairman of an investment firm called Princeton Economics International and he is best known for his economic predictions based on the Economic Confidence Model, which he developed.

Armstrong says you can forget about the U.S. dollar crashing in value.  Armstrong contends, “No, that’s absurd.  The euro is in terrible shape.  The yen is in terrible shape, and honestly, you can’t park money in yuan or Russian rubles yet.  I mean, let’s be realistic here, but eventually– yes.”

He contends that the Fed will be forced to raise interest rates in the coming months which will have serious implications world wide.

Armstrong predictions are based on the theory that everything in the world happens in cycles. We are currently near the end of a major 300-year cycle. The end of the last cycle saw revolution against monarchies. This cycle will end in revolution against corrupt democracies. Indeed, he reckons that government corruption worldwide is now at an extreme.

He warns that “governments are run by lawyers” more concerned with reelection rather than “financial experts” ... “thats our biggest problem …”

He suggests that capital inflows to the U.S., particularly from China, will continue to push up the stock markets and real estate in the U.S. This will cause congress and the media to blame the Fed for the bubbles with the consequence that the Fed will raise rates.

He warns of the bubbles in the bond markets:

“… this one looks like it's going to be in the bond markets….it's the peak, really, in government and you have interest rates going negative and you can't have much lower than that. So this appears to be the peak in so far as government is concerned and bond markets are going to be turning down.

I mean, we're in a lot of trouble with most of these governments. Our models are really showing that by 2020 the amount of interest we pay to roll the debt constantly will exceed the entire defense budget.

In the longer term this is clearly untenable and has obvious ramifications including much higher interest rates in the U.S. and a much weaker dollar."

He refers to the culmination of previous cycles such as Russia in 1998, the dotcom bubble and the real estate bubble and postulates that this 8.6 year cycle will result in the collapse of the bond markets.

Raising rates will have a particularly devastating impact on emerging markets who have issued dollar based debt with the result that they will end up "like Greece" unable to pay the interest on their debt.

He sees little hope for European banks. The euro which assumes all participating countries are the same is untenable. He says that in Europe, people buying German assets and debt in the expectation of a collapse in the currency and in the hope of redeeming such assets in newly issued Deutsche Marks.

He says that gold may hit $5,000 in the U.S. but has the caveat that $5,000 would not have the spending power that it has today and says a week’s wages may be $5,000/oz.

We believe that this is unlikely. Workers being paid $5,000 a week would mean the U.S. is experiencing hyperinflation. This would likely result in gold rising parabolically to levels over $10,000 per ounce.

He advocates a well-diversified portfolio including precious metals. He adds that that people should include coins that are familiar to the wider public.

Greg Hunters asks Armstrong whether he would be a  “holder or buyer of gold at some point?” 

To which he replies that “your portfolio has got to include everything … including bullion” and says it should be bullion “familiar to the general public.” 

goldcore_chart1_15-04-15

“You have to realise that if you walked into a Starbucks, and you have a silver quarter you know what it is .. is the kid at the counter going to know what it is … he is going to say it is a quarter.”

Presumably alluding to fact that popular “recognisable” gold coins will remain in demand, may be used for payments, trade and barter and will remain liquid in an economic crash.

He warns against gold and silver bars due to the potential risk of counterfeiting and potential trust issues with some bars. He thinks “staying with recognisable gold coins is better” and gives the example of the “$20 gold pieces and things of that nature.”

Armstrong warns that gold could fall to $1,000 per ounce in the very short term, coming months, prior to surging to $5,000 per ounce.

Hunter is a good interviewer and asks the right questions and the interview is a worth a watch.

Find the Safest Ways to Own Gold: Comprehensive Guide to Investing In Gold

 

MARKET UPDATE

Today’s AM LBMA Gold Price was USD 1,189.85, EUR 1,123.56 and GBP 808.58 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,191.45, EUR 1,127.95 and GBP 814.33 per ounce.

Gold fell 0.6 percent or $7.20 and closed at $1,192.50 an ounce on yesterday, while silver slipped 0.61 percent or $0.10 closing at $16.20 an ounce.

The March U.S. retail sales figure missed market estimates yesterday, but a strong U.S. dollar seems be keeping gold at bay for the moment.

Gold in USD - 1 Month
Gold in USD - 1 Month

Gold in Singapore remained steady at $1,193.42 an ounce near the end of day trading after hitting  $1,183.68 an ounce on Tuesday, its lowest price in two weeks. Comex U.S. gold for June delivery was unchanged at $1,193.50

Holdings of the world's largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, rose by 1.8 tonnes yesterday, data from the fund showed, only its third daily inflow since mid-February.

China’s economy had its slowest growth in six years growing only 7 percent in the first quarter, which some analysts say may stifle their demand for bullion. However, it could lead to increased safe haven demand particularly if there are falls in Chinese stock and property market.

Premiums on the Shanghai Gold Exchange picked up to $3-$4 an ounce over spot price from a lower range earlier in the week.

As usual Fed committee members are making it difficult to get a clear reading on if and when the Fed may raise interest rates.  Minneapolis Fed President, Narayana Kocherlakota, said raising rates this year, as most Federal Reserve officials expect, would be "inappropriate" because it would delay the return of too-low inflation and the Fed's 2 percent goal.

The Greek debt sage continues as government representatives and the nation’s creditors continue talks in Athens. Gold should be supported by uncertainty regarding a potential Greek default.

In Europe in late morning trading, gold is trading in euros at €1,124.140 per ounce or up 0.24%. Silver is trading in euros at €15.25 or up 0.39% and platinum is at €1,075.88 or up 0.27%.

In U.S. dollars in Europe in late morning trading, gold is at $1,191.91 or off -0.17%. Silver in U.S. dollars is at $16.17 or off -0.02% and platinum is at $1,151.90 or down -0.06%.

Breaking Gold News and Research Here

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 04/15/2015 - 18:11 | 5996610 fedupwhiteguy
fedupwhiteguy's picture

"Hunter is a good interviewer and asks the right questions and the interview is a worth a watch." ????

BS. I find him very annoying due to the ill timed interruptions. JMFOA

Wed, 04/15/2015 - 14:06 | 5995613 jomama
jomama's picture

If I had an ounce of Ag everytime I read bullshit like this, I wouldn't have to read it anymore.

Wed, 04/15/2015 - 14:04 | 5995599 kchrisc
kchrisc's picture

The FedRes, an arm of the Zionist banksters, will raise rates when their "exit" from the dollar and DC US to Europe is complete. Only when they have things in place to profit from the further fall of their DC US war dog--the "Final Plundering."

The dollar is up on "exit" not strength.

The banksters need to repay us.

 

Zion is treachery from within run from without.

Wed, 04/15/2015 - 13:57 | 5995560 kchrisc
kchrisc's picture

I read his site, but find that he alternates back and forth between "inflation is coming," to "deflation is coming." Of course it is inflation, but he is back and forth.

We will see in October or so.

The banksters need to repay us.

Wed, 04/15/2015 - 13:56 | 5995544 GFORCE
GFORCE's picture

Goldcore are pathetic. Still trying to play the inflation hedge bullsh*t! The difference is Goldcore have been wrong for 4 years while Armstrong was right.

Wed, 04/15/2015 - 13:52 | 5995512 large_wooden_badger
large_wooden_badger's picture

The true value of gold will only be discovered when the vampire squid is dead and gone.

That is, of course, ASSUMING another monetary beast does not rise to take it's place.

There, I made an ASS out of U.

Wed, 04/15/2015 - 13:16 | 5995314 Crocodile
Crocodile's picture

Jim Willie refuses to go on USA Watchdog; claims G. Hunter is a turncoat...I believe he is correct.

Tue, 04/21/2015 - 13:28 | 6015078 Alice20
Alice20's picture

Wow, that surprises me. Can you post a link where Jim Willie says something like that? Or could you at least tell me on what issue G. Hunter is a supposed to be turncoat?

I'm just trying to get to the truth. Any help would be appreciated.

Wed, 04/15/2015 - 12:59 | 5995239 dondonsurvelo
dondonsurvelo's picture

Whoever wrote this gold promotion article is an ass.  Armstrong has been right on gold and Goldcore has been wrong.  Armstrong was not under house arrest.  He was in Federal prison and at time in isolation for contempt.  He was charged with crimes but never prosecuted for crimes as the charges were trumped up.  Goldcore hates Armstrong because he has called out the gold promoters and exposed them as charlatans.  I own gold for the reasons Armstrong says one should own gold and not convoluted BS reasons Goldcore says one should own gold. 

Wed, 04/15/2015 - 12:55 | 5995218 Vendetta
Vendetta's picture

predicting the real value of gold in a catastrophic economic/monetary environment ... yeah right... its easier to predict where a bolt of lightning is going to strike next year ....   the fed is going to raise interest rates ... sure Martin.  Ain't gonna happen ... it can't or the ponzi collapses.  The guy is not to be listened to and I almost feel sorry for those who do and act accordingly. 

Wed, 04/15/2015 - 12:49 | 5995182 miker
miker's picture

Never saw Armstrong before on video.  He looks a little rough.  Talks kind of sleazy too.  Some of the stuff he puts out is a bit whacky in my opinion.

Wed, 04/15/2015 - 13:50 | 5995500 daveO
daveO's picture

Keep watching CNBS, they will guide you and dress and speak appropriately too/sarc/. I remember when I still watched them, over a decade ago. They'd bring Fleckenstein on just so they could try and tear him down over the housing bubble. House prices have always gone up, blah, blah blah. 

Wed, 04/15/2015 - 12:48 | 5995178 messystateofaffairs
messystateofaffairs's picture

In my own analysis for 2015 I find things to be bad out there but I think Hillary is going to fix everything because she is a woman and we have never had a woman president.

Wed, 04/15/2015 - 13:19 | 5995322 Ctrl_P
Ctrl_P's picture

So very nearly...

I miss mdb

Wed, 04/15/2015 - 13:19 | 5995256 Crocodile
Crocodile's picture

She is your "Champion"?

--------------------------------------------------------

https://www.youtube.com/watch?v=0uY7gLZDmn4

-------------------------------------------------------

Voting for the lessor of two evils means one is voting for evil...I believe it is time to stop...then again the US is in a moral sewer from the top to the bottom.  Can only expect further judgment from the Moral Law-giver and we will.

------------------------BTW--------------------------

Note what has happened to the family and the US since woman quit being mothers and home-makers; you know "one who makes a home a home" - think great grand-ma.

Wed, 04/15/2015 - 12:06 | 5994929 lasvegaspersona
lasvegaspersona's picture

It does not sound like Armstrong has thought things through. 

The 'general public'???!!!!  Gold does not need to please the 'general public', it only needs to pleaase those who value it. Sounds like Martin is thinking we'll be taking Krugerands down to the local 7-11. It is a wealth asset and has seldom performed as a medium of exchange (which he implies it will be used as). It like saying you should avoid Picassos because the ordinary man couldn't tell a Picasso from a Rockwell.

Wed, 04/15/2015 - 12:01 | 5994898 Joebloinvestor
Joebloinvestor's picture

I don't think he fears going back to jail if he is wrong.

Wed, 04/15/2015 - 11:46 | 5994827 vyeung
vyeung's picture

Interesting that many a poster has a very cloudy understanding of gold and how the world works when things are in chaos.

OK - Lets clear things up a bit with a simple example!

DURING WW1 & 2 What did the nations use to pay for equipment+ammunition?

Answer that and the bullshit smoke screen about multiple variables gets stuffed up the orifice.

Now, in the event that you can't even afford to feed yourself during a crisis there is no point in discussing about gold's role and its iron clad position through the millennia as you are but a poor bastard trying to survive.

 

Wed, 04/15/2015 - 13:00 | 5995249 SuperVinci
SuperVinci's picture

Spoken well, from the viewpoint of the shrimp.

 

The private huge savers in this world out weigh all us shrimps combined and it really is their say that determines things.

 

Wed, 04/15/2015 - 13:04 | 5995266 Crocodile
Crocodile's picture

You do not know the Lord of Glory' He is ultimately in control.  Man plans his ways, but the Lord directs his steps.

Wed, 04/15/2015 - 11:36 | 5994737 vyeung
vyeung's picture

guys full of shit. The Fed cannot raise interest rates at any meaningful rate due to:

1. They have a few hundred Trillion USD in interest rate derivatives (sighting was the London whale bullshit)

2. US Treasury market would implode upon a meaningful rise due to the UST carry trade+leverage

3. They have to inact QE4 for further global de-dollarization of UST as reserve assets. AIIB is the calling card+all biliateral trade arrangements done and being done.

4. Oil futures/derivatives are already under extreme stress and a rate hke would blow the petrodollar infrastructure to kingdom come. Not that its not already experienced a Fukushima already.

People need to wake the fark up and realize that the Fed works for the Banking cartel and not for the US. People in general are so dumb they cannot comprehend this. When you clear this minor pont up, its pretty dame clear that you don't want to screw up your shareholders unless you wish to be double tapped in the temple!

You see, they can raise it if they have alternative plan to profit from the immense carnage, but right now from all the intel I see, they don't have such a monsterous hedge.

Wed, 04/15/2015 - 11:15 | 5994603 BoPeople
BoPeople's picture

"Very superstitious, writings on the wall,
Very superstitious, ladders bout' to fall,
Thirteen month old baby, broke the lookin' glass,
Seven years of bad luck, the good things in your past.

When you believe in things that you don't understand,
Then we suffer,
Superstition ain't the way."*

We certainly are being primed for something, are we not? Shemitah? 7 years of bad luck. Out with the old Fed in with the Global Fed 2022?

Got my bag of popcorn and 6 pack.

*All credits to Stevie Wonder

Wed, 04/15/2015 - 11:13 | 5994600 Anarchy 99
Anarchy 99's picture

amazing how these posters here writing from mommy's basement think they know better then Mr. Armstrong, but it's ok these  people are needed to feed the rest.

Wed, 04/15/2015 - 13:40 | 5995440 daveO
daveO's picture

Basement? More likely a gov. cubicle.

Wed, 04/15/2015 - 11:41 | 5994797 Not_FieldingMellish
Not_FieldingMellish's picture

Armstrong said gold would crash in Q1 2014. It rose. He said Dow would hit 30000 by the end of 2014. It hit 16500. He is about as accurate as any random person.

Wed, 04/15/2015 - 11:35 | 5994717 vyeung
vyeung's picture

guys full of shit. The Fed cannot raise interest rates at any meaningful rate due to:

1. They have a few hundred Trillion USD in interest rate derivatives (sighting was the London whale bullshit)

2. US Treasury market would implode upon a meaningful rise due to the UST carry trade+leverage

3. They have to inact QE4 for further global de-dollarization of UST as reserve assets. AIIB is the calling card+all biliateral trade arrangements done and being done.

4. Oil futures/derivatives are already under extreme stress and a rate hke would blow the petrodollar infrastructure to kingdom come. Not that its not already experienced a Fukushima already.

People need to wake the fark up and realize that the Fed works for the Banking cartel and not for the US. People in general are so dumb they cannot comprehend this. When you clear this minor pont up, its pretty dame clear that you don't want to screw up your shareholders unless you wish to be double tapped in the temple!

You see, they can raise it if they have alternative plan to profit from the immense carnage, but right now from all the intel I see, they don't have such a monsterous hedge.

Wed, 04/15/2015 - 13:43 | 5995459 daveO
daveO's picture

The AIIB is their life raft.

Wed, 04/15/2015 - 13:15 | 5995309 Crocodile
Crocodile's picture

I agree and .25% or .5% fed fund rate doesn't count as an interest rate raise, but then again who knows what tricks they have up their "fill in the blank",

----------------------------------------------------------------------

Here is food for thought and would take care of America with a bang and offer up a scapegoat; remember J. Napoliano said in Aug. 2013 the nation would LIKELY experience an "UNPRECEDENTED NATURAL DISASTER" to which the nation has never expereinced.  How about YELLOWSTONE being blown-up.

Yellowstone Secret Eruption Program  https://www.youtube.com/watch?v=SIIThOZfC68
Wed, 04/15/2015 - 11:28 | 5994699 SuperVinci
SuperVinci's picture

Gee, the guy named anarchy defends the felon subscription seller conspiracy kook. 

 

whoda thunk?

Wed, 04/15/2015 - 11:40 | 5994789 Anarchy 99
Anarchy 99's picture

I have no sympathy for stupidity or ignorance

Wed, 04/15/2015 - 11:17 | 5994621 BoPeople
BoPeople's picture

Isn't Mr. (as you call him) Armstrong a renown criminal? Or so I read in the tell-all-sheets.

Wed, 04/15/2015 - 11:21 | 5994658 Anarchy 99
Anarchy 99's picture

why dont you read up on what the government did to him before you ask this, it's all documented. 

Wed, 04/15/2015 - 12:40 | 5995122 Divine Wind
Divine Wind's picture

 

 

 

I agree 100%. Armstrong was railroaded And as you say, all someone has to do is a little research to see this is the truth.

Regardless, I still think he is a loon, though a brilliant one at that.

 

 

Wed, 04/15/2015 - 11:06 | 5994561 gmak
gmak's picture

Regarding the 300 year cycle and the revolutions against monarchies - this only seems to happen when people are going hungry. We're a long long way from that at the present time.

Wait until the little ice age has time to get it's teeth in the northern hemisphere, have 2 or 3 years of reduced crop growing time, Hillary saying: "Let them eat iwatches", and voila: an analog for the French Revolution may come to a 1% or political pet near you.

Wed, 04/15/2015 - 13:38 | 5995428 daveO
daveO's picture

No need for an ice age. Just for the EBT/SS checks to fail.

Wed, 04/15/2015 - 11:10 | 5994581 SheepDog-One
SheepDog-One's picture

Meh...I'm definitely not holding my breath for 'The Revolution'

Wed, 04/15/2015 - 11:03 | 5994540 kumquatsunite
kumquatsunite's picture

Let's see...California is out of water; the US continues to import third world people in order to teach white people just how bad they are (at almost a fifty percent white country, every white person can now be assured they have a non-white "teaching" them how bad they are), and hollywood pumping out another movie every five minutes that provides examples of how to defile, mangle, and destroy the human body (aka "horror Movies) but be sure you are stocking up on gold? Better Americans should think about demanding English as our Only language (no more press 2), every spot in a college/university be required to be given to an American student rather than foreigners, and no more foreign work visas. Note: if we educate our American children rather than giving Fifty percent of the college spots (including masters and Phd spots) to foreigners to university presidents and administration staff can retire at twenty years with golden parachutes, we won't need foreign workers. Duh.

Wed, 04/15/2015 - 10:43 | 5994429 Consuelo
Consuelo's picture

It looks as though enough people here caught onto the rather strange '2015 civil unrest/2020 debt servicing' mind-bender to call BullShit on this interview...   And I would agree.

 

 

Wed, 04/15/2015 - 10:40 | 5994420 Consuelo
Consuelo's picture

Poor old Marty looks like he's been rode hard...

 

Wed, 04/15/2015 - 14:23 | 5995697 CarpetShag
CarpetShag's picture

Armstrong = "bullshit" printed on a Commodore C64 dot-matrix printer.

Wed, 04/15/2015 - 11:04 | 5994549 TannyDanner
TannyDanner's picture

.. and put away wet.

Wed, 04/15/2015 - 10:37 | 5994412 Bemused Observer
Bemused Observer's picture

People who predict should stop attaching dates to their predictions. For instance, the author has fall of 2015 seeing global civil unrest, riots in the streets. But just 5 years later, in 2020, the US is STILL servicing its debt, which now costs more than the military? Is that even remotely likely?

Besides, one can never know the exact dates/times of these things. They start when they start, and always take people by surprise.

Predictors, you don't need dates. Just focus on WHAT will happen, not WHEN it will. That way you don't paint yourself into a corner when the time you predict comes and nothing has happened yet.

I know bad things are going to happen to our economy fairly soon, that's a no-brainer. I don't need a specific time-frame to realize I should be making some preparations NOW. Once you see where this is all going, you know you need to get the hell out. You don't stick around to see how close you can time your exit.

Wed, 04/15/2015 - 13:58 | 5995561 SMG
SMG's picture

That is an excellent point.  Not only that, but when you give dates and things don't happen by that date, people you've tried to warn say "See you said so and so would happen by 2012 or whatever so see it never going to happen" .  People wrongly think everything is then OK and that's dangerous.

It's is better to describe a sequence of events. 

Wed, 04/15/2015 - 11:12 | 5994595 SheepDog-One
SheepDog-One's picture

But without dates, it's far harder to make money predicting things.

Wed, 04/15/2015 - 10:36 | 5994405 Osmium
Osmium's picture

- Fall 2015 turning point - civil unrest and riots globally says forecaster Armstrong

- By 2020 the cost of servicing U.S. debt will outpace defence spending

Doesn't appear to be too much to the rioting and civil unrest in 2015 if he is still predicting events in 2020?


Wed, 04/15/2015 - 10:30 | 5994386 unplugged
unplugged's picture

armstrong's IQ will max out at 75

Wed, 04/15/2015 - 10:19 | 5994330 Blopper
Blopper's picture

If they say there will be a BIG LOSS in the bond market, then rest assured this particular event (big loss in bond) will not happen.

Wed, 04/15/2015 - 10:16 | 5994322 Panic Mode
Panic Mode's picture

I have watched his solution video. Not that I disagree with his solution, what he suggested I am sure it will work and bring the nation into solvent. But the solutions he suggested is a BIG ask. Government can't borrow any more again, no tax, etc .... To be fair, he mentioned in order for this to happen, it needs crash & burn.  

However, I am not sure whether the people will have the brain to do that after crash & burn.

Wed, 04/15/2015 - 10:58 | 5994518 centerline
centerline's picture

we are going to find out one way or another.

Do NOT follow this link or you will be banned from the site!