Why Some Experts Put Gold Prices to the Moon

I'm not even going to attempt to outdo some of the Gold price predictions that put gold out of the stratosphere and into lunar orbit.It is realistic, however, to say all that has influenced gold's 400% rise over the last decade is likely to continue to influence the gold price higher for many years to come . . . and then some.

Those influences include, dollar weakness, rising deficits, inflation fears, market uncertainty and let's not fail to mention a debt crisis.It's the debt crisis that has now elevated all of the aforementioned concerns to unprecedented levels.

For the most part, I don't think we yet grasp the scope of our own domestic debt troubles.I read a statistic this morning that just blew my mind.Did you know every U.S. family would have to pay an additional federal tax of $31,000 per year to pay off our national debt?And I'm not talking $31,000 this year or for the next five years or even ten.I'm talking about a jaw-dropping 75 years of $31,000 annual additional tax payments per family to pay off our entire national debt.

That's what I call lunar orbit.I mean how can anyone imagine that a small tax increase on 3% of our remaining workers is going to do anything.Now I see why the "D" word is coming up more and more.Is there really any choice but to default on this debt?

The only other choice is to inflate our way out of debt.That is to say, use future cheaper dollars to pay off current debt.Should this be the sought after alternative to default, and recent Fed actions make it appear to be so, then regular old inflation isn't going to do the trick.We are going to need hyperinflation!

Hyperinflation is a word thrown around rather loosely lately.When heard, it usually conjures up thoughts of 15% inflation, maybe 20% with an ill memory of the Carter days.That's baby stuff by some definitions, though, that put the number as high as 50% per month.Generally, it is defined as simply "out-of-control" inflation.

Put in those terms, no gold price prediction is too high.If currency lost half its value in two months time, effectively doubling the gold price every two months, it's easy to see how predictions get out of control.But frankly, that's what it would take to pay off our debt.Incomes would have to increase nearly that fast, in order to create a situation where each family could afford an extra $31,000 a year in taxes for 75 years.

Aaahh forget it.Even that math is too crazy to figure.What isn't crazy is to expect gold to continue on its course of the last decade at maybe a somewhat quicker pace.Throw in a pinch of slightly higher inflation and a dash of geopolitical unrest and you have the recipe for rising gold for many years to come.Is a 400% gain enticing enough? - at least to put a relatively small percentage of your savings and retirement accounts into a few gold coins.

Then, if the wild predictions of hyperinflation do come to pass, good thing you own gold.