Egon von Greyerz , founder of Gold Switzerland by Matterhorn Asset Management, returns to the show from his offices in Zurich, Switzerland with bullish comments on the precious metals sector.
"We are getting into the perfect storm. All the pieces are falling into place. We aren't just looking at an economic and financial storm, but now also a geopolitical one of proportions that are totally uncontrollable. We've been worrying about the debt situation and the deficit. The world is going rapidly downhill morally; not just financially, but morally. Now it's the perfect storm that we are also looking at very high risk of conflict. So far, there are two local conflicts in the world, and they both involve super powers one way or another."
- Mideast conflict adds new twist to gold-storage.
- Escalating global geopolitical risks.
- Peaceful outcomes seem unlikely, at this junction.
- Record deficits and monetary expansion has ignited a nascent gold-rush!
"It's not a question of [the price of] gold going up. The wonderful thing about gold is that it reflects the absolute terrible management by governments and the central banks of their currency. The U.S. is the biggest economy in the world; it's the most mismanaged economy also, and badly managed currency. As all currencies, it's gone down by 97 to 99% since 1971 when Nixon closed the gold window.
"If you are a long-term gold investor, you never have to worry about the price of gold. Because you know that governments and central banks are on your side every day of the week and the month because they will continue to destroy the currency.
"Now because of deficits in many countries, especially the U.S., also the fact that countries in sovereign nations around the world are disinvesting of U.S. Treasury assets. And also since the U.S. froze Russian assets in banks around the world and central banks, no country will ever any longer hold their reserve assets in U.S. dollars.
"So we are seeing a gradual move out of the dollar and that will accelerate. As I have expressed in previous articles, it's very likely that central banks instead, over time, will put their reserve assets not into currency, which is depreciating by the day -- whether it's dollars or euros or any other currency -- but in the only money that has maintained its purchasing power throughout history, which is gold.
"Therefore, I can see reserve assets going into gold, which would obviously mean over time a massive re-evaluation of gold because there's not enough gold to satisfy central bank demand. The demand can only be satisfied by higher prices, not by more gold.
"So therefore, from the point of view of a gold investor, don't worry about the fact that gold is not going up today or tomorrow, because over time, it is going to go up and it will accelerate at some point.
The trend has turned up. We had a test a couple weeks ago, and that was the final test in my view on the downside. And now we are on the way up again. I feel very very confident that the next upward trend in gold has started and that is going to take us to much higher levels."
- The greenback is losing favor as the reserve currency du jour.
- Our guest says: "focus on gold accumulation, not the price."
- Financial derivatives could be approaching $3 quadrillion - 3,000 stacks of 1 trillion dollars!
- Fiat money could lose most if not, all of it's value.
- The imbalances between the masses and the ultra-affluent is concerning.
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