Pound, Dollar, Euro, and Yen Will be Worthless Within Five Years
“The new US Administration has taken over with the conviction that they will ‘make America great again.’ I really wish they will succeed, because a strong US would be good for the world. Sadly, the odds of achieving that admirable objective are totally stacked against them. At the end of the next 4 years, there is a risk that this Administration will be more hated than any government since Carter and possibly even more disliked than Hoover.”
Von Greyerz discusses how Trump is unlikely to reverse 100 years of mismanagement; why US corporate debt has trebled since 2006; the US pension crisis; and why the only money that has survived in history is not man-made.
He concludes: “When this situation unfolds in the next few years, gold is guaranteed to go well above $10,000 in today’s money and silver over $500. But we are of course not going to see today’s money in a hyperinflationary world. Therefore, the gold and silver prices will depend on how much money is printed. A price of $ 100 billion or $100 trillion per ounce like in the Weimar Republic would not be impossible. But that is of course a meaningless level in today’s terms. What is certain however, is that gold and silver will vastly outperform inflation and therefore do a lot better than just maintaining purchasing power.”
“It is virtually impossible for most of us to fathom what will happen to the world’s financial system, to currencies and to precious metals in the next few years. But what is certain is that physical gold and silver at current prices represent the best form of wealth preservation and insurance that anyone can own. Owning precious metals in the coming crisis should not be an option but a necessity.”