Paul Van Eeden: Fair Market Value For Gold Is Around $950 – $1,000 Per Ounce
Paul is a self-proclaimed gold bug — just not always a gold bull. He views gold as money, and therefore, believes gold can be valued by observing its relationship to other currencies such as the US Dollar. Based on the increase in the supply of dollars and the supply of gold since year 1900, Paul has developed a metric to determine the fair market value of gold.
It is his belief that a fair amount of downside risk remains and Paul has stated that the fair market value for gold is somewhere around $950-$1,000 per ounce.
In addition, Paul explains the faults that exist with current monetary measurements including M1, M2, and M3 and how this led him to develop the All Money Supply.
By stepping away from the hype surrounding QE and the Fed, Paul has determined that we have indeed seen a significant amount of inflation, but we are not looking at run away inflation. There is no sign of hyperinflation. Gold’s move to $1900 an ounce was in anticipation of massive amounts of monetary inflation — inflation that never materialized.
According to Paul, the decline in the gold market is not over yet.
Paul Van Eeden is the President of Cranberry Capital. He began his career in the financial and resource sectors as a stockbroker with Rick Rule’s Global resource Investments Ltd. in 1996. He has been active in financing mineral exploration companies and analyzing markets ever since.