A Stock Market Collapse and a Surge in Gold is Imminent
by Egon von Greyerz
“At last we are here. It has been a long wait for gold and silver holders. For the wealth preservationists who have held gold/silver since the beginning of the 2000s, it has just been tedious since the highs in 2011. What has happened in the last four years in the world economy has confirmed the importance of capital preservation. But for precious metals investors who came in nearer the top, it has clearly been a nerve-wracking time.”
“Whenever you invested in gold or silver won’t matter in the next few years. Because we are likely to very soon start the rise of the precious metals that in all likelihood will lead to new highs by 2016 or maybe even before.”
Greyerz discusses how governments are destroying the value of money; what $500 million for an apartment or a painting is telling us; an unreal world with unreal prices based on unreal money; why there must be a dramatic fall in the stock markets; and precious metals as the ultimate form of wealth preservation.
With unprecedented risk in the world, wealth preservation will be critical to avoid a total destruction of assets. The likely scenario in the next few years is initially massive money printing worldwide in a futile attempt by governments to save the world.
Buying precious metals will not just preserve wealth in the next few years, but is likely to yield a very high real return. Greyerz’s target for gold in 2002 was $10,000 in today’s money. But since he believes we will have hyperinflation, the actual price could be considerably higher. That would give silver a potential target of $500. Many gold and silver miners could go up by more than ten times. But stocks are not wealth preservation like physical gold or silver, and therefore much more risky in the upcoming economic environment.