Gold Realism vs. The Shangri La Fantasy of Fiat-Driven Markets
Matterhorn Asset Management founder, Egon von Greyerz, joins Lynette Zang in continued conversation regarding the dark shadows hanging over global economies, politics and markets.
Egon reminds viewers that the total dis-connect between rising markets and falling economies is not about timing, but about managing and preparing for known and obvious risks.
Egon discusses economies “running on empty” for years on extreme budget deficits “paid for” by fiat currencies created out of thin air by increasingly desperate central banks. Of course, such monetary policies destroy currencies. Since the 1970’s, global currencies have gone down by well over 90% in real terms against gold.
Lynette and Egon discuss growing evidence of increasing social, political, and economic unrest occurring in real-time in the backdrop of failed economic, immigration and social policies. Desperate attempts to can-kick these problems, such as the “Fed-Now Accounts” and other digital currencies are ultimately just diversionary cons, as these “currencies” have zero actual value.
Egon considers as well the possibility of further market melt-ups before the crushing melt-downs which follow, and sees no point in chasing such markets given their undeniable risk levels.
All rivers, of course, still point to physical gold and silver as the antidote to a global fantasy-fiat system. Toward that end, Egon addresses rising premiums as well as the mismatch between the total global supply of investment gold and future global demand, in particular from institutional buyers. As more demand for gold rises, buyers will be paying far more for far less.