Gold Versus The Financial System’s ‘Hubristic Swindle’
The comments below are an edited and abridged synopsis of an article by Egon von Greyerz
The arrogance and over-confidence that the powers-that-be have displayed in leading the world to ruin will be punished. Sadly, that will affect the whole world and not just the elite that caused it.
Up for discussion: bankers and governments have inflicted incredible damage; printed money fattens corporate executives; the global sandcastle is built on MMT; the biggest swindle in history; the final currency collapse is coming next; gold will not look back; there’s no physical gold to back up paper gold; institutional gold buying; and factors driving the gold price.
To summarize, the gold price will be fuelled by four strong factors: Major debasement of currencies due to money printing; substantial shortages of gold in LBMA and futures markets; major new private and institutional gold investors entering the market; and only small quantities of gold are available at current prices.
Silver is likely to move three times as fast as gold, but it is volatile and the corrections will be vicious. If you want to sleep well at night, own only gold. Still, with the gold/silver ratio historically high at 93, an allocation of 75% physical gold and 25% in silver is a good choice.
Larger quantities of precious metals should be stored outside the financial system. It is risky to store wealth preservation assets in a bankrupt banking system whether in the bank’s general vault or in safe deposit boxes.
Gold and silver are in the acceleration phase. The trend will be upward with the normal corrections. The time when you can buy gold below $2,000 and silver below $25 is limited.