Gold equilibrium without Mainland China Adjustment is $16,679
Federal Debt Held by Foreign & International Investors (FDHBFIN) and the Equilibrium Price (FDHBFIN/OZ)
Gold equilibrium without Mainland China Adjustment is $14,476
Federal Debt Held by Foreign & International Investors (FDHBFIN) Less Mainland China Treasury Holdings and the Equilibrium Price (FDHBFIN/OZ)
The chart below illustrates the rate of expansion of foreign liabilities in comparison to national income. The ever-increasing angle of ascensions of FDHBFINGDR during the liquidity phases provide little doubt as to why capital has moved into gold since 1970's. The speed of gold's ascent will only increase as the pressure (angle of ascension) on the financial system intensifies.
Federal Debt Held by Foreign & International Investors As a % of GDP (FDHBFINGDPR) and the London P.M. Fixed Price of Gold (GOLD)
Any comments on John's figures?
Jim,
Using the methodology you specified in your article today, I get a target price for gold of: $15,600
Most current TIC report, http://www.ustreas.gov/tic/mfh.txt
Total Foreign Holdings of Treasury Securities $4,479.2 Billion
Less : China - mainland (1,144.9)
Plus: 50% of China - mainland 572.5
Adjusted Foreign Holdings of Treasury Securities $3,906.8 Billion
Number of Fine Troy Ounces held in Custody by the US Mint for the US Treasury
http://www.usmint.gov/downloads/about/annual_report/2010AnnualReport.pdf
Note to Financial Statements 6, "Custodial Gold and Silver Bullion Reserves", page 59
Statutory value @ $42.2222 per FTO $10,574,053,000
Number of FTO 250,438,229
Valuation of Gold required to equal Adjusted Foreign Holdings of Treasury Securities
Adj Fgn Holdings $3,906,800,000,000
Number of FTO Gold at US Mint 250,438,229
Gold price Valuation $15,600
Regards,
John M.
