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The Value of The Dollar Has No Guarantee Whatsoever — The Coming Revaluation of The Price of Gold

Well, what do you know? No lack of toilet paper!

  • The Value of The Dollar Has No Guarantee Whatsoever — The Coming Revaluation of The Price of Gold
    by Egon von Greyerz,
    The statement above is of course totally accurate for a country running budget and trade deficits for over half a century with a total debt, including unfunded liabilities, in the hundreds of trillions of dollars.

    It could have been said today, but it actually dates back to August 1971 when the People’s Daily in China declared the beginning of the end for the monetary system of the capitalist world.
    Starting my working life in a Swiss Bank in Geneva two years before Nixon’s fatal decision, I have experience of that fall of the dollar that the Chinese predicted. In 1970, there were 4.30 Swiss francs to the dollar. Today you get just under one Franc for one US$. That is a catastrophic collapse of 77% of the world’s reserve currency in almost 50 years. If we look at the graph of the dollar against the Swiss franc below, we can see that this currency pair has been in a long consolidation at the bottom since 1987.

    Gold and the other precious metals are on the way to new highs. There are two different paths for gold. One, which is favoured by some market experts, is a reset orchestrated by the IMF and the World Bank leading to a gold backed SDR. That would involve gold trading ceasing for a limited time, starting one weekend. When the market opens again, gold will be revalued to a much higher level which in US dollar terms could be $5,000, $10,000 or higher.

    The other alternative is that market demand and pressures make gold rise very fast to new highs, and way beyond that, in the next few years. This would be a disorderly reset.

    Since I would have no faith in the first official reset which will be fake and not solve any of the world’s problems, we are likely to see the second reset in any case. At that point the gold paper market will go to zero and the physical gold market to unthinkable heights.

    In either case, the last chance of getting hold of gold at low prices, or at all, is now. Gold is unlikely to wait for a bigger number of investors to get in at these prices. So now is the time to get on the Gold Wagon before it is too late.

    read more.

Remember the Golden Rule: “He who has the gold Rules!”


February 12, 2019 - Posted by | Economics | , , , , , , , ,

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