The Biggest Wealth Transfer in History

The comments above & below is an edited and abridged synopsis of an article by Egon von Greyerz

The concentration of global wealth has reached dangerous proportions. The world’s three richest people have a greater wealth than the bottom 50%. The top 1% has $33 trillion; the bottom 1% has debt of $196 billion.

The interesting point is not just that the rich are getting richer and the poor poorer, but how did we get there? And what will be the consequences?

Von Greyerz discusses: Panama and paradise papers—sensationalism; US debt is up 1,800 times in 100 years; the biggest wealth transfer in history; higher taxes will not solve the problem; a peek into the next 4 to 8 years; interest rates to reach 20%; currencies to reach zero; and gold—will it reach $15,000 or $80,000?

In early 2002 gold was $300 per ounce. Von Greyerz was right on gold’s rise, but expected that the final move up would happen more quickly. Nevertheless, he is convinced that this move is still to come, and it is likely to be exponential.

How long it will take is impossible to forecast. There are factors that indicate these major moves and changes will have happened by 2025. Cycles also point to gold having a major move into 2021. So it could happen within 4 years, but it could take as long as 8.

What is indisputable is that global risk is currently greater than at any time in history. What is also certain is that gold is the best insurance against these risks, just as it has been for thousands of years.