by miat42
From simplistic view, it only means another commodity bubble in Gold is waging. I don't know if it would really go up to $3000. Although I won't trade it myself, I would entertain such possibility.
It means:
1) It has to go up because of all the stimulus money floating around the world, making paper money worth much less than before. Gold is reverse proxy of money devaluation. The more the money (especially USD) devalues, the more the price of gold will go up.
2) I don't know if gold would really go up that high, but that's possible in theory. Let's assume that price of gold can do that, it would suggest that valuation of USD would get even lower than today. Today, USD has devalued about 20%, when gold price is close to 3000, I would guess USD would depreciate to 50% off.
3) What would happen when USD is down 50% off? The significance is world-changing!! This shock wave is going to shock every corner of the world like a giant tsunami because USD is still a bona fide world currency with or without its devaluation. The shock will be devastating to a lot of economies that holds USD as its main foreign reserves.
4)This gold bubble is very devastating because gold's value is still tied to the value of USD. And this gold bubble is a world phenominon, not just a local nation's bubble. Gold bubble could trigger another energy bubble and all sorts of other commodity bubbles, like rare ore bubble, rise bubble, silver bubble, oil bubble, you name it. Gold bubble is definitely opening a pandora's box that could unleash demons of a greater scale.
That's why I have been saying repeatedly that 未来很多年将发生天翻地覆的经济政治变化, 绝对震翻你所有的教育准备你在心理上能接受的。 大家小心。