The world is never returning to normal. The COVID crisis has changed daily life for billions and served as a catalyst and scapegoat for an increasingly decaying financial system. The world is now hampered by shortages and soaring prices, and it will only get worse. Cargo ships are piling up on the US’ west coast, automakers are slashing production amid soaring prices for cars, and even food shortages are starting to rear their head, creating a real possibility of widespread and persistent social unrest in the near future. Despite the world’s central banks assuring us this is all “transitory,” the fear, uncertainty, and frustration is palpable, prompting Twitter CEO Jack Dorsey to recently tweet :
Hyperinflation is going to change everything. It’s happening.— jack⚡️ (@jack) October 23, 2021
In this discussion, Lynette Zang and Egon von Greyerz concur. The central banks have lost control and hyperinflation is coming. The question of what comes next for gold remains. As Egon has said many times, gold continues to be unloved and undervalued. Though central banks are slowly ramping up gold reserves, institutions and investors continue to pile into stocks, bonds, and even crypto. Gold has a way to go before its price catches up with the voracious money printing that has occurred and will continue until all currencies reach their intrinsic value: Zero. As history clearly shows, gold is far and above the best asset to own to protect oneself during such a monetary reset.
None of this, however, should lessen the truth that hyperinflation is coming, and the times ahead will be difficult beyond anything anyone in the west has seen in a lifetime. Financial assets and gold are important, but not as important as one’s core assets: friends, family, and the higher values of life itself. This is where wealth truly originates. In the days, months, and years ahead, preserve your wealth in all forms.