Numbers are symbolic, almost ironic sometimes. We see them everywhere in our daily lives, and even try to use numbers familiar to us to facilitate luck or certainty - family birthdays for lotto picking are a good example. So, with keeping up with a common theme, and watching Gold rapidly approaching the 1,000 mark, I am declaring that 1,000 is the new 100. Our lives will now be yielding more numbers in everything we do - phone bills, gas bills, mortgage bills, grocery bills, etc. Even the government has entered a new realm of numbers with the billion dollar theme being left behind for the next phase of numbers - trillions. Back in the day, if one pulled a C note(100 dollar bill) from their pocket heads would turn, but today 100 dollars is nothing more than a grocery odyssey with some spare change for a local do-it-yourself carwash. So how does one protect themselves from this overwhelming invasion of numbers? Gold. And if you want a simple equation of when to get rid of your gold, lets look at some simple, maybe easy to understand numbers.
The US goverment is going to issue near 3 trillion new American Dollars, which will devalue any existing dollars currently in our system. By how much the dollar is devalued is the trillion dollar question, but perhaps lets use this simple equation and how it relates to Gold. For every trillion dollars the government has put on the street could ultimately equate in a 1,000 dollar increase in the price of Gold. 3 trillion = 3,000. Current Gold price is 1,000, so if we add 3,000 to its current price we get: 4,000 dollar Gold? Mmmmmmm. Yes and no. Of this 3 trillion dollars, some of it will yield inflation, but some of it will yield true GDP and economic growth so all of that money can't be discounted to price of Gold. So what is the price target for Gold? I'd have to say somewhere between complacency and mania, but for now you're either long or you're wrong.
Bullish Flag Formation Near Term target 1,300. (Top of flag resistance - breakout price) 1000-700 = 300. Add this to 1,000 and you'll get $1,300