A Newsletter “SOVEREIGN ALCHEMY WILL FAIL” by Egon von Greyerz has been posted on the Matterhorn Asset Management website:

“When we look at the world economy today, wherever we turn we see a wall of risk. And sadly this is an insurmountable wall with risks that are totally unprecedented in history. There has never before been a potentially catastrophic combination of so many virtually bankrupt major sovereign states……… ”

To read the Newsletter on MAM click the following link:

http://matterhornassetmanagement.com/2010/02/11/sovereign-alchemy-will-fail/

Egon von Greyerz interview with BBC Radio, 15 January 2010

Egon von Greyerz, the founder of GoldSwitzerland today did a 4 minute interview with BBC 5 Live – Wake up to Money.

In the introduction to the interview the BBC presenter says:

According to Egon von Greyerz a leading gold commentator, gold could reach $10,000 per oz due to the state of the world paper currencies. He has released a hard hitting analysis of the effects of toxic loans and printing of money to prop up the economies. Egon von Greyerz, a former Deputy Chairman of Dixons and now Managing Partner of GoldSwitzerland, also states that we could see hyperinflation and the collapse of the dollar.

The interview should be regarded as a typical example of popular media’s absolute faith in paper money and misunderstanding of real money i.e. gold.

But the public’s perception of gold will change dramatically in the next 12-18 months. With the likely major decline of currencies like the dollar and the pound and the resurgence of problems in the financial system, the coming rapid appreciation of gold will make major headlines. At that point the media will totally change their attitude and treat gold with the respect that it requires as the only surviving currency of the last 6,000 years.

Gold at $1,135 will be regarded as an absolute bargain in 12 months time.

CNBC Squawk Box Europe interview with Egon von Greyerz, December 22, 2009

Watch the interview by clicking the arrow.

A newsletter “GOLD IS NOT GOING UP – PAPER MONEY IS GOING DOWN” by Egon von Greyerz has just been posted on the Matterhorn Asset Management website.

The Newsletter discusses the illusion of gold going up and the destiny of the dollar and why it will reach its intrinsic value of zero. It also examines why money printing will accelerate rapidly in the next 12-24 months.

To read the newsletter please click on this link.

India, like China, understands the virtues of gold. This is why they have snapped up 200 tons of gold from the IMF at around $1,045 per ounce or $6.7 billion. The UK does not understand gold, that is why Gordon Brown sold  most of the nation’s gold in 1999 at virtually the low of $250.

Instead the UK has today spent $51 billion on propping up bankrupt banks. Royal Bank of Scotland received another $41 billion today making it the costliest bailout worldwide with a total of $75 billion. Lloyds Bank received another $10 billion. The US is of course also spending printed money on rescuing bank creditors with 115 bank failures so far in 2009.

So who is likely to make the best return on their investment, India with their gold or the UK or US with their bankrupt banks. We certainly know who we will put our money on.

On 22 October we forecast in our report “Final Warning” that starting in November we are likely to see major changes in markets and in the economy. We have barely entered November and gold is already making a new all time high at $1,081. It is interesting that it is happening right after IMF has disposed of  half of the planned gold sales. The same event in the 1970’s was the catalyst for the acceleration of the gold price.

But this is just the beginning as we have been discussing in our reports. We would suggest that investors don’t follow the example of the UK and US and throw good money after bad but instead do like India and protect themselves by buying gold.

The severe problems that the world economy and financial system have experienced in the last couple of years will seem like a walk in the park compared to what will happen in the next couple of years.

For the investors who haven’t yet protected themselves, let us tell you that you are very lucky. You are lucky that you have been given yet one more chance to protect yourself. But let us be very clear, you have a very short time to put your house in order. Because during the month of November the events that we outlined in our Newsletter “A Shocking Fall” are going to start to unfold.

Dollar down and Gold up

Starting in November, we are likely to see the dollar falling precipitously and stockmarkets turning down after this bear market correction. We will see the bond market falling and especially long term interest rates going up. And most importantly gold will start to move up very strongly.

We have since 2002 advised our investors to protect themselves by buying physical gold and store it outside the banking system. Gold has since gained  more than 250%. Also, in the last ten years the Dow Jones has moved down 80% against gold. Most world stockmarkets have had similar falls against gold. So in real terms the stockmarket has been a very poor investment. We expect the Dow to fall another 90% against gold in the next few years.

The party is over

Earlier this year we said that a 50% correction is totally normal in a bear market and that would take the Dow to 10,300 which could happen by early November. Stockmarket investors have been given an incredible gift in the last seven months but the party is now over. Most investors will not realise this until it is too late. They will hang on to their shares for a long time yet and follow the market most of the way down. In our view, the only stocks worth holding are precious metals stocks which are grossly undervalued and will benefit from a very strong rise in gold.

The next few years will be devastating for the world economy, for the financial system and for private lives. We have outlined this scenario in our newsletters and commentaries for a long time.

The majority of people are short sighted and believe the economy has improved because governments have printed trillions of Dollars, Pounds, Euros etc that they call money. But let us be very clear, you can’t abolish poverty by printing paper and you can’t solve the world’s enormous debt problem by exacerbating it.  These debts will never be repaid with normal money, not today and not tomorrow – NEVER!

Still time for protection

In the next few weeks until some time in November, investors can still protect themselves by selling their stockmarket investments and buying gold at reasonable prices. Gold at $1,050-60 will be seen as the bargain of a lifetime in the next 12-24 months.  But remember that the main reason for buying gold is to protect yourself from the destruction of paper money and assets that will take place in the next few years. Many countries, including the US and the UK will have a hyperinflationary depression which will change the face of the world as we know it today.

So physical gold (and silver) stored outside the banking system is your best protection.

Matterhorn Asset Management has set up a separate Gold Division called GoldSwitzerland (www.goldswitzerland.com)  in order for investors to purchase physical gold at very competitive prices and store it in their own name in Zurich, Switzerland outside the banking system and with personal access to their own gold bars.

An interview by Lars Schall with Egon von Greyerz has just been published on MMNews on the subject “Gold vs Paper Money”.

The interview covers the role of gold in a likely hyperinflationary depression. Also discussed is the end of the US empire and the role of GATA (Gold Anti-Trust Action Committee). Egon von Greyerz states that gold manipulation will soon fail and that the only real gold market will be the physical market.

To read the interview on MMNews in full please click here .

To view GATA’s comments on the interview please follow this link .