“When elephants and central bankers (with wings) fly, don’t hold gold”
This is what Egon von Greyerz recommends in this 25 min. interview with Jan Kneist of Investor Talk.
Egon suggests that they will all fly when: “There are no deficits……, no inflation….., no debasement of currencies ….., strong statesmanship based on real values”!
All very unlikely in the foreseeable future according to Egon. Thus the case for gold and wealth preservation is stronger than ever.
Jan and Egon also discuss increasing pressures on ordinary people with declining food sales in Germany and France due to price increases around 20% and the increasing in housing costs both in Europe and the US, leading to a major increase in evictions. The commercial property sector is also under tremendous pressure in Europe and the US due to higher rates and lower occupancy.
Also credit portfolios are deteriorating rapidly, with a high risk of the banking crisis, which started in mid March, resuming with a vengeance.
The BRICS meeting at the end of August in Johannesburg is much discussed in the media. Egon believes that it is premature to expect a gold backed BRICS currency at the August meeting. What is probable is that the commodity rich BRICS countries will no longer hold the dollar as a reserve asset but instead gold.
The consequences of these events make the case for physical gold as a reserve asset for investors self-evident.
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