Matterhorn Asset Management founder, Egon von Greyerz, sits down with Silver Bullion TV to discuss the extensive market, currency and geopolitical ramifications of the war in Ukraine and the West’s mismanaged use of financial sanctions aimed at Putin that could result in a new era of gold supremacy.
War, sadly, is just one of the many symptoms of failed financial systems. Europe, of course, is heavily dependent on Russian energy, and thus forces many countries (like Germany or the Czech Republic) in the impossible situation of depending upon the energy of the same nation which the West wants them to isolate and sanction. Now the EU is seeing significant price hikes for goods and is suffering as a whole for a war which was otherwise avoidable but for very poor pre-war statesmanship from DC and elsewhere.
Ultimately, we are approaching the end of a foreseeable era of higher inflation, greater money printing and more desperate financial policies from equally incompetent financial leadership around the globe. Looking ahead, markets and currencies are heading for a crash against which gold and silver are essential financial counter-measures as globalism is slowly replaced by “every nation for itself.”
Given the EU’s dependency on Russian energy and China’s support in the East, Russia has choices which can dramatically weaken the West in general and the USD in particular. Western “weaponization” of FX reserves and the USD will only further weaken the faith and strength of the world’s reserve currency.
Restoring trust in global currencies will likely and eventually require some linking (as opposed to total “backing”) of gold to currencies. Such measures will slowly restore real price discovery in gold and silver as opposed to the open fraud in the OTC futures markets. China and Russia likely have much more gold than publicly reported.
In short, a new era is emerging in which commodities will see dramatic price rises and geopolitical power shifts as stocks and bonds prepare for a looming fall subsequent to the current “crack-up boom.” In this backdrop, gold and silver will not only fulfil their roles as currency insurance, but also serve as a path toward wealth enhancement in addition to core wealth preservation.