Gold: The Only Safe Place
The comments below are an edited and abridged synopsis of an article Egon von Greyerz
In 2019, the investment world will start to realize that asset markets don’t continually grow, as stocks, bonds and property start their long journey down, which will eventually lead to declines of 75% to 95% in real terms. But the major risk is not just investment markets. Just as important is counterparty risk, which too few investors are concerned about.
Anyone who wants to protect their wealth should not be invested in any of the bubble asset markets. But to avoid counterparty risk as well is a lot harder.
It is clear that it will be extremely hard to navigate investment markets. For the few investors who get out of the risky asset markets fueled by credit expansion and money printing early, many other dangers remain.
Up for discussion: Few investors worry about counterparty risk; 60 years of mismanagement in the US; debt is a global disease; there is no safe place; don’t hold all your assets in the banking system; eliminate counterparties; only 10% in gold is not sufficient protection; and the short-term outlook.