G-20 will monetize at least 10 percent of U.S. debt, which would send gold rocketing to more than $5,300 an ounce - Invest in Gold ETF.

As we have already re-iterated that apart from stock related with natural resources (food commodity) one must look at gold ETF as an invetsment avenue. This is because gold is going to be in high demand in order to solve the current economic problem. When currencies are de-valued, gold will automatically rise and as we suggested it can go up to 3x in next 3 years!!!

How to buy Gold ETF? How to purchase Gold Exchange Traded Funds in India? Refer: http://www.benchmarkfunds.com/

The G-20’s Secret Debt Solution

• While world leaders might talk about a “New World Order” in global economics, they give few details of how this might be accomplished. G-20 will agree to … Actively intervene in the forex markets to depress the dollar’s value, thereby re-igniting asset inflation and alleviating debt burdens.
• Ultimately create three new monetary units (Refer our special report on this...Link; new dollar, new euro, new pan-Asian currency), to eventually replace the dollar as the world’s sole reserve currency.
• Establish a new fixed-rate currency regime, abolishing the present floating rate foreign exchange structure. Re-calibrate currency values to a common basis of value, most likely involving gold.
• And implement the currency overhaul via the IMF.

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Do you think it can’t happen?

• The longer term forecast that the world will end up with three reserve currencies is based on references by various influential parties to a “tripartite” or “tri-polar” system. That would diversify reserve currency duties among the three major currencies instead of relying on just one, the dollar.
• We suspect the names of the new currencies will be changed to divorce them from any stigmas attached to the current ones and to make the devaluation easier to sell. People would certainly not be happy with a new “dollar” that’s worth only one-tenth of their old dollar (ditto for the euro and yen).
• Please don’t misunderstand: We do not foresee a return to the gold standard. There’s simply not enough gold available, at any price, for the world to go back to a gold standard.
  Plus, it’s too restrictive, and central bankers and politicians abhor being handcuffed by an outside force. So the world is not headed in that direction.
• For savvy investors who understand the process of currency devaluations, there’s no need to bet on the return of a gold standard.
• Instead, all you need to know is that the process of a deliberate devaluation of the dollar has already largely begun … that the world’s monetary system can and will be changed … and that through the process of changing the value of money, debts can be effectively and largely forgiven … and asset prices, albeit artificially, re-inflated.

How high would the price of gold ultimately go? How would currency devaluation and the concomitant inflating away of debts impact other asset prices, such as real estate and stocks?

• The ultimate high for gold depends on how much of the U.S. debt the policymakers decide to “forgive” through reflation. No one knows for sure what will be decided upon. But a little simple math based on just the debt position of the U.S. gives you an idea … To monetize only 10 percent of the U.S.’s mountain of bad debts, gold would be priced a shade over $5,300 an ounce.
• Ultimately, We expect the G-20 will monetize at least 10 percent of U.S. debt, which would send gold rocketing to more than $5,300 an ounce.

How will this impact other assets prices?

• Virtually all asset prices — from real estate to stocks — will be inflated higher as debt levels are effectively forgiven in part by currency devaluation.
• Yes, that means real estate prices in general will head higher longer term. And it also means that someday we will be staring at a Dow, along with other major stock indexes here and across the globe, that explodes higher in value as earnings and assets get revalued in a devalued currency.
• But that’s not a good reason to run out and buy real estate or stocks in general. The markets and the economy have many other problems to work out before it becomes reasonably safe to start diversifying and employing your cash to invest for the “Great Re-Inflation.”

There is no substitute for owning gold at this stage. Do not let go of your core gold holdings, under any circumstances.

- To contact the analyst on this story: Abhishek Sonu (Commodity Expert) in New Delhi at Abhishek@hbjcapital.com