In this very interesting interview, Egon von Greyerz (founder of Goldswitzerland.com and board member of Goldbroker.com) explains why it’s important to own gold outside the banking system and why gold is not in a bubble lipitor weight gain.
5 Things You Need To Keep In Mind About Gold :
1. It is very important to own real physical gold and silver and not paper gold and certificates. The paper market, the gold paper market, is a hundred times bigger than the physical market. So there is so much paper outstanding in gold, and in silver, and governments are said to have –world governments – up to around 30.000 tons of gold. Most probably don’t have it, they probably lent it to bullion banks and trading banks, and therefore there is probably not the gold around the banks are saying, the central banks are saying they have, and one day when investors ask for delivery against the paper gold that is outstanding there will not be enough physical gold.
2. It is really important as well to own your physical gold and silver outside the banking system because you have a situation where governments are bust, where the banks are bust, or potentially bust. We have never ever in history had a situation when virtually every single major government is bankrupt. And because a lot of the gold that is stored in banks – and we have seen that – is not actually there.
Gold must be held outside the banking system, in your own possession where you have direct access to your physical bars.
3. Deficits will accelerate, and therefore money printing will accelerate, and we will be on the way to a hyperinflationary depression. Money printing will destroy the currencies as all currencies are going down, they have for the last hundred years, they are down 97 to 99 percent against gold in the last hundred years, they are down 80 percent against gold in the last 12 years.
4. Gold is not in a bubble, all gold is doing is reflecting the destruction of paper money, you just have to turn the curve upside down, if you look at, rather than seeing gold going up you turn the curve upside down and it is the currencies going down. It is the Dollar going down, it is the Euro going down and it is the Pound going down.
5. Gold is not in a bubble, all gold is doing is reflecting the destruction of paper money. Only one percent of world financial assets are in gold today, so nobody owns gold actually, and gold has still gone up over the last 12 years, it has gone up five, six times, depending on the currency.