Gold Price Will Explode When System Breaks – Gordon Long

By Greg Hunter’s USAWatchdog.com 

Private investor Gordon Long contends the price of gold will shock the world when it revalues to reflect the massive amount of currency that has been printed globally. Long explains, “That is correct, and it won’t be something that is gradual, it will be very abrupt.  The system will break . . . and the financial markets will freeze up.  When they come out of the other end of that freeze, and it may be a number of weeks because the next crisis will be global and much more complex than 2008.  We could control that with the Federal Reserve . . . and this one you cannot do because you cannot get agreement with all those countries.  Never mind understanding the complexity.  So, when we come out on the other side . . . there will be a massive revaluation in the U.S. dollar. . . .  Gold could jump to $5,000 or $10,000 an ounce or something like that. . . . It will be massive.  They will have to put some stability in the monetary system, and the only way they can do it is having something they cannot print.  This is what has gotten us into this problem.  We have to get back to sound money.  It will have to be gold.  What percentage of backing will determine what the value the gold will be.”

On the value of the U.S. dollar, Long contends, “Personally, I think the revaluation of the U.S. dollar will be well over 70% devaluation. It doesn’t mean the world is coming to an end.  It just means you have to go through this to reset.  Those who prepare and understand why this is happening and watch for the signals, there’s going to be fortunes transferred.  They are being transferred right now, frankly.  One other big caveat on gold prices going way up, expect the government to tax it like you have never seen before.”

Long says the stock market hitting one all-time high after another, despite all the economic headwinds, shows the public is in a “delusional phase.” The latest nuclear war threat from North Korea shows the extreme delusion going on, and Long contends, “This is about as clear of an example as you are going to get.  This is more serious than the Cuban Missile Crisis, and the fact the market has not even blinked during this tells you we no longer know how to price risk.  It’s not being priced correctly. . . . It’s almost pure speculation at this point, and maybe straight out gambling.”

When is it all going to come crashing down? Long predicts, “I think there is a scare coming this fall.  That scare will allow central banks to start more quantitative easing and other programs.  They will be guaranteeing the markets and guaranteeing assets because they can’t have this pension system collapse, and it’s all in the stock market.  I think we are talking about the spring of next year.” (When it all totally implodes.)

Join Greg Hunter as he goes One-on-One with investor Gordon Long, founder of MATASII.com.

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After the Interview:

Gordon Long also points out, “27 times the stock market has hit all-time new highs, and yet, fundamentals have never been worse. If there is a 5% to 8% decline in the stock market it’s over.  They can’t have more of a decline than that because of the extreme degree of debt leverage.

There is free information, articles and analysis on MATASII.com.  Long has another website called GordonTLong.com as well, and it’s also free.

 

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Comments
  1. Scott

    If the government is going to “tax gold like you have never seen before,” what’s the point of owning any? They’ll just confiscate your gains.

    Wouldn’t farmland or food you can store, be better?

    • Greg Hunter

      Scott,
      I think every Senator in Congress is a owner of physical metal. They may not want to tax gold but make it money to get the economy going. You have no idea what is going to happen but I think you are better off with metal than without it. You need some of everything to be truly diversified. By the way, the taxes may not be as bad as you think, and paying taxes is far better than writing off losses.
      Greg

      • Scott

        An excellent, thought-provoking answer. As always, you give me much to think about and consider. Thanks, Greg!

        (And a great interview, btw…)

        • Greg Hunter

          Thank you Scott!
          Greg

          • ROGER P CARPENTER

            Good Job Greg!

            Gordon is RIGHT. I have 8 years of education in Economics Globally and Domestically. He is Correct in my best estimation. I couple my education with 31 years on the street as a cop. It’s a monster..

            • Greg Hunter

              Roger,
              I appreciate your service and your comment.
              Greg

      • helot

        RE: ‘If the government is going to “tax gold like you have never seen before,” what’s the point of owning any? They’ll just confiscate your gains.’

        Ah-hem, I have heard that certain God given substances a.k.a. ‘drugs’ are illegal and banned by our our mighty overlords, too. Certainly, those elements are nowhere to be found, and absolutely no one profits from them,.. not anywhere. Especially not politically connected figures.

        As we all know, the most secure place in the world, one where the might of our overlords is most mighty, is in the crucificaton system we call, prisons. Obviously, there’s total control in that environment, as there must be in the Panopticon we live in. So, of course, ‘They’ll just confiscate your gains’.

        Such is reminiscent of those dastardly outlaw colonial-American smugglers, pre-1776. They should have obeyed and submitted to the empire, like good serfs.

      • Anthony Australia

        So does Ben Bernanke

      • Hairy Herry

        Greg,
        This Hairy Guy agrees as long as these critters in Congress don’t do the “holding tax” of 90+% which I understand JFK did, back in his day.

    • Frederick

      Scott They are most likely going to tax that farmland as well They will most likely tax the air we breath at some point

      • Paul ...

        Frederick … Al Gore wanted to tax the air we breathe “out” (CO2) … other crooks would have imposed a separate tax on the air we breathe “in” (O2)

        • Paul ...

          Speaking of crooks … looks like a few men “with balls” are actually going after these (Hillary, Comey and Lynch) … by appointing a second special prosecutor!!

      • Andrew

        They already are here in canada, its called a carbon tax….

    • This sceptred isle

      Scott, nobody knows what will happen. Farmland and food could just as easily be confiscated or stolen. If people starve they will go and raid the nearest farm, shop or even house. A lot of people talk as if owning gold and other assets are mutually exclusive. You can hold some gold as well as other assets. People need to stop searching for a risk free asset as none exist. You can only diversify your risk exposure.

      • Tin foil hat

        This sceptred isle & Frederick,
        You are correct. Nothing can protect you from a tyrannical government. If someone like Obama or Hillary were in charge when the SHTF, gold is probably the best asset to own. It’s the only asset you can take with you crossing the border – most likely under moonlight.

      • JohnH

        “They will most likely tax the air we breath at some point”
        It’s called the carbon tax.

    • Tod

      When Roosevelt confiscated gold last time around, a lot of people just refused to comply. Even more will this time. At least you can hide gold. Real estate has the downside of being unhidable, so when the government raises real estate taxes, you’re hosed if you can’t defend yourself against them.

      • Tin foil hat

        Tod,
        We are all thinking along the same line. Gold will go into hiding, or escape to another country where it can shine under the sun.

        • freebrezer

          And in to the black market trade.

    • Bill

      SCOTT: Only if they know you have it. I bought all my pm’s with cash, and keep it under the ole mattress

    • salem

      The goals of the elitist bankers are not just in making money. Their main goal is to control the whole world and create a One World Order. In order to do this, they have to collapse the U.S. economy and create all kinds of chaos here in America. They want to totally dismantle this whole country and own it. They also want to reduce the population so that they can control the rest of the population easier. They can do some of this by controlling the food. It’s very important for people to have home gardens. I believe the economy will fail on a 3 day holiday weekend, and cash will only be good for about 10 months to a year after that. Then it will become worthless. Food and household supplies will be the most important thing, but being in a safe place is also going to be very important. I believe there will be communities in America that function based on a gold/silver currency in the aftermath. But, when it comes right down to it, we will only survive if we turn to God and ask for His help.

  2. Paul ...

    As Mr. Long says: the rise in Gold will shock the world … just as Buffet’s prediction may have shocked people when he stated the Dow will be at 1,000,000 in 100 years … what do Buffet and Long have in common … they see inflation (or another way of looking at it massive devaluation of the dollar) … actually Buffet’s prediction was “very bearish” … for if we assume a 3% growth rate for the economy (where 2% is due to inflation) it looks like we will be in for a 100 year depression … as the dollar (worth 3 cents now) will only be worth 0.001 cent one hundred years from now … that means the Dow “on an inflation adjusted basis” will be at 1200 in one hundred years! … David McAlvany has a very good grasp of the current economic situation and makes a good listen … https://www.youtube.com/watch?v=Xyd4xkLoeyY
    PS: Greg … perhaps you can get David McAlvany as a guest on USAWatchdog!!

    • Paul ...

      Everyone remember not to vote for any Constitutional Amendments … because the banksters will put in a clause that will free them from paying back all the money they stole from us … right now with our current Constitution we can “claw back” the $20 Trillion National Debt and all the other Trillions they have stolen from the American people!!

    • Edward Ulysses Cate

      100 years? Nah. Just take a look at Venezuela.
      52wk range: 12,621.93 – 473,007.50 (9/27/2017 1pm Az time)
      https://www.bloomberg.com/quote/IBVC:IND

    • freebrezer

      Paul – I have listen to him for years – One sharp guy

      • freebrezer

        And Very interesting on the play between palladium and platinum … they are on parity. My take is that something has been found per palladium making it’s industrial use worth a whole lot more!

        • tin foil hat

          freebrezer,
          I have been wondering what’s going on with palladium as well. The price of platinum is indicative that gold is not an ordinary metal unless something has also been found regarding its industrial use.

    • Scott

      Paul,I agree Dae McAlvany rocks.

  3. FC

    Trump being the businessman he is, knows that the Treasury still values gold around $42 an ounce…….he may very well re-value Gold to say $1300 giving the Treasury a windfall of around $500 billion on the apparent 8000 tons held in Fort Knox.
    That’s $500 billion the government has without lifting the debt ceiling.

    • DavidC

      FC,
      If that’s the case, why not revalue it to $2600 an ounce and have a $1 trn windfall? Mind, even at that level, it’s still representing only 5% of the $20 trn government (sic) debt.

      DavidC

  4. OutLookingIn

    CRASH!

    The majority opinion among prognosticators, economists and analysts, is fairly well what Mr. long has spelled out :
    A world wide economic crash. Financial market freeze up. Credit movement halted. Major currencies devalued overnight. Gold and silver at thousands of multiples.
    Sorry to break your bubble, it ain’t gonna happen.
    What is and has been occurring is a slow dribble down of economic activity, with inflation of asset prices as can be seen with real estate. These high price levels are now starting their own slow dribble lower. As will the world equity markets, with much gnashing of teeth and see-sawing on their slow downward trend.
    One only has to look at what has happened in Japan over these past 25 years , to see where the west is going and how it’s going to get there. The central banks will make damned sure of that! The only fly in the ointment are those two elementary age school children yelling insults at each other, as they stand toe-to-toe in the school yard. The world waiting to see who will inevitably throw the first punch. Doesn’t matter which one, the result will be the same. Mushroom clouds billowing up, over major population centers. Then ALL bets are off.

    • This sceptred Isle

      Who knows? Maybe you are right but Japan’s deflation happened largely in the context of an otherwise functioning global economy.

    • Nick Charles

      500 Billion is Chump Change In A World With 20 TRILLION debts

  5. AndrewB

    Hi Greg,
    Gordon Long – what a brilliant guest. In this crazy world, where the MSM (the Ministry of Truth) strive endlessly to convince people that black is white and white is black, Gordon provides sober, well-reasoned analyses. Thanks!

  6. Anthony Australia

    Great interview Greg, thanks so much.

    Hang in there metal heads!

  7. helot

    I am really at a disadvantage from the rest of you all, I don’t often get to view the videos. I must say, I really appreciate the summary Greg Hunter provides, and the excellent input from The People in the comment section, it has all been real ‘food for thought’ in spite of the fact that I’m surrounded by the willfully ignorant, clueless, heartless, greedy, unread, distracted …

    Anyway, I do hope that I’ve returned the value a bit.

    That said, I wonder what you all make of Paul Craig Robert’s latest, ‘Washington Has Initiated Military Conflict With Russia’ – September 27, 2017. Spooky stuff, that can’t be dismissed by saying, ‘it’s from RT’. [Unless, we’re being played, and both sides (West and East) are in cahoots. It’s possible, I suppose.]

    When Gordon Long says, ‘The system will break’, I’m reminded of the bits I’ve read about the collapse of the Soviet Union and how common people there at that time said that gold bought their way out of dire straits, and again, how Ferfal described things in Argentina not so long ago with respect to the value of a single link on a chain of gold necklace. I imagine food and water stores are working harder than gold at the moment in Puerto Rico, however; we all know that gold isn’t a ‘be all, to end all’ ,’cover everything’ substance. Eh? I imagine gold has not lost value in P.R.. I wonder about the reality.
    I write all that while thinking how technological gains in the past have shifted in an instant and caused the borders of empires to shift and… well, what’s it matter what I think, I’m just a nobody in flyover-land who reads and thinks too much while at the bottom of a stack of Yurtle’s many turtles, awaiting the return of the true Mighty One, while striving to be as good as i can. My two Cents, for what it’s worth to you. Good night.

    • susan

      Paul C. Roberts thinks exactly like George Soros does. I see them as two birds of a feather.

    • Paul ...

      I don’t get it helot … Why has Trump joined Israel to initiated military conflict with Russia? … was he “just pretending all along” to be against the Christian head-chopping ISIS terrorists?? … we voted Trump into office to destroy ISIS … and now he is doing exactly what Hillary and the McCain warmongering neocons wanted all along??? … how could Trump be so duplicitous and go over to the Dark Side (supporting Christian head -chopping ISIS terrorists make human sacrifices to their God Molok)???? … http://www.paulcraigroberts.org/2017/09/25/washington-initiated-military-conflict-russia/

      • Paul ...

        Paul Craig Roberts by exposing “the secret killing” of a Russian General and two Colonels is using a good strategy … the warmongering neocons wanted this “targeted killing” to be kept as quiet as possible in the US media … so that when the Russians “retaliate” … the warmongering neocons could claim on National TV “the Russians attacked American forces for no good reason” … and the psychopathic neocons could then declare war (encouraged by the equally psychopathic shareholders of financial institutions and military supply industries who have only greed on their minds) … these evil people have no qualms over the mass killing of millions of civilians in a nuclear war … their only concern is … greedily garnering more and more worthless fiat paper dollars … may God damn their evil souls!!

        • Paul ...

          Interesting … after the targeted killing of a Russian General by US forces … Mattis comes under rocket attack in Afghanistan … as Jesus taught … we Americans should not do unto others what you don’t want others do unto you!!

  8. Saeed

    Thanks Greg. Great interview with Gordon. People should support your work and Gordon’s as well. Diversification away from financial centers which includes big cities as a hedge against social chaos. Thanks.

  9. helot

    Pardon, one last thought for this evening, which I can’t shake… I was wondering (and, with respect for the effort) to Jerry, and those who follow what he writes, how do you respond to this:

    ‘The Demise of the Dollar: Don’t Hold Your Breath’ – Charles Hugh Smith, September 22, 2017 oftwominds

    Myself, I used to know, or, thought I did [quite like, long long ago, when I was 19 yrs. old] then, I read that bit from Mark Twain, “It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.”
    I mean, in 2007 I thought – for sure – no American, paying attention, would Ever stand still, let alone, cher for, ‘The Fed’ buying up all those MBS awhile back in order to try and act like they can stop a correction in the markets.
    Some important guy in the 1980’s, said on the TeeVee, just that, he said the mere suggestion of doing so would be like embracing an absurd thing which I shall not describe that is now accepted as A-ok and normal. Gnoe-what-I-Mean? It was like he thought ‘Americans’ wouldn’t stand for such a thing. It was contrary to their very ideals. And, yet, here we are.

    I guess I’m having a hard time accepting that the values which I was taught – the ones which determined if you were an American in favor of freedom and liberty – are now out-of-date and old fashioned and have been replaced by a love of Socialism/NWO tripe which all thinking people recognize historically leads to destruction of the worst kind.
    I think, maybe, PCR wrote an article or two about that.
    But, I digress.

    • This sceptred Isle

      As much as I think globalism in the form of multi-national companies is parasitic and the drive towards a centralised global control mechanism is an impediment for human liberty the age of empire was just as destructive and malevolent. Were native Americans of black slaves ‘free’ in ‘the land of the free’ ?

    • Tin foil hat

      helot,
      I read that article and disagree with Charles Huge Smith.

      “A reserve currency cannot be pegged; it must float freely on the global FX exchange. China’s currency, the RMB, is informally pegged to the USD; it doesn’t float freely according to supply and demand on global FX markets.”

      – When China crushes the COMEX’s stranglehold on the prices of gold, the RMB or yuan (perhaps all currencies strong and stable enough) will be pegged to physical gold via the SGX or oil/yuan convertible to gold scheme. All currencies and gold will float in the FX market but only the strong and stable currencies would be able to manage/maintain the peg.

      “Nobody wants to hold a currency that can be devalued overnight by some central authority. The only security in the realm of currencies is the transparent FX market, which is large enough that it’s difficult to manipulate for long.”

      – ProShares dollar index swung from $26 on June 04, 2010 to $21 on Aug. 26, 2011. A 20% movement in 10 months is not stable at all for a reserve currency. A similar swing upward from $21.3 in June 27, 2014 to $26.5 in March 15, 2015 is just as bad or worse, a 23% movement in 9 months!!!!
      Is the FX market really transparent?
      Did the dollar really move up 23% in 9 months just because Yellen said she would raise rates?
      Why do I keep hearing that the dollar is back by the U.S. military? If the dollar were back or secured by our military, what role does the military has in a transparent FX market?

      • Occasnltrvlr

        “When China crushes the COMEX’s stranglehold on the prices of gold, the RMB or yuan (perhaps all currencies strong and stable enough) will be pegged to physical gold”
        -Tin Foil Hat

        At least your name is honest.

        • tin foil hat

          Occasnltrvlr,
          Well, I thank you for the compliment. However, I bet if you think about the gold peg a little more, it makes a lot more sense than SDR.
          The only reason, I believe SDR is the more likely alternative, is that a direct gold peg is not advantageous to the west – wars.
          We could be under a FREEGOLD standard if Nixon allowed gold and the dollar to float instead of given up on the defense of the fixed gold price at $35 in 1971.
          Ford tried FreeGold by opening up gold for public consumption in 1974. Carter got nervous when gold prices revealed the weakness of the dollar ( the last Iranian Shah refused to support the dollar), Volcker commenced gold suppression soon after.
          I hate to say this but the financial Ponzi started under Reagan/Greenspan. Volcker did it honestly by raising interest rate to over 20%.

    • Tin foil hat

      Regarding Jerry’s predictions, it all depends on whether China would grow a set of balls. If China stopped beating around the bush and drained COMEX dry on Oct. 18, then Jerry will be on MSNBC by Oct. 19.
      However, if the CIA caught wind of that, Paul Craig Robert’s latest would be “Washington Has Initiated Military Conflict with China”.

      • Occasnltrvlr

        There is only one team, and it is effecting a transition.
        http://www.bis.org/about/board.htm

        The only question, the ONLY question, is whether or not they can, or will, keep the entire ship afloat.

        Jerry MAY end up on MSNBC. Frankly, I think he deserves it.

      • tin foil hat