September 15, 2016
As we continue to see increased volatility in mid-September, a former associate of George Soros just warned the price of gold is going to skyrocket to $2,000.
Victor Sperandeo manages over $3 billion, has been in the business 45 years, and has worked with famous individuals such as Leon Cooperman and George Soros. Below is what Sperandeo had to say.
Eric King: “Victor, what is going to cause the price of gold to surge higher and finally take out $1,400?”
Victor Sperandeo: “Today the Mexican peso is hitting new lows vs the dollar, and the price of gold in Mexican pesos is hitting new all-time highs…
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Victor Sperandeo continues: “But the dollar needs to begin to decline to push commodity prices higher. What is going to cause that? When the Fed stops trying to keep the dollar high in order to keep the price of oil low. The are pushing oil lower in a desperate attempt to keep retail sales up. The harsh reality facing the Fed right now is that there is no way to increase rates. So we are not going to get an increase in rates in September or in November.
Fed Propaganda And $2,000 Gold
But what we have to see, Eric, is a weak economy that is totally falling apart for the dollar to crash. Gold will then not go to $1,400, instead it will go to $2,000 because that will imply more stimulus. What’s holding gold back right now is pure propaganda from the Federal Reserve. But as soon as the propaganda is seen for what it is, the price of gold is going to skyrocket.”
Well, the resource estimate was just released today and the number of gold ounces increased from 10 million ounces to a staggering 18.1 million ounces! And the gold equivalent resources increased from 13 million to a jaw-dropping 23 million ounces! So both the gold ounces and gold equivalent ounces increased roughly 80 percent! Trading in Brazil Resources was halted before noon PST, and the halt continued for the rest of the day because the exchange felt that additional time would be needed for traders, investors, and institutions to digest the news and properly price the stock.
This is where understanding the news is extremely important. The chart below shows the valuation of gold in the ground. Note that Brazil Resources gold is only valued at $11 an ounce as of the time the stock was halted (see below).
The fact that Brazil Resources gold is only valued at $11 an ounce allows a great deal of leverage to upside price movements in the gold market, which is exactly what savvy investors look for. It will be interesting to see how shares of Brazil Resources trade in the coming days and weeks after the market digests this important news. The stock symbol for Brazil Resources is BRI in Canada and BRIZF in the United States.
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***For those who would like to listen to the audio interview with Brazil Resources Chairman CLICK HERE.