In Part I of this 2-Part discussion with Cambridge House CEO Jay Martin, Matterhorn Asset Management (MAM) founder, Egon von Greyerz discusses MAM’s precious metal approach to preserving generational wealth in the backdrop of an increasingly “messy” global backdrop.
As to the “mess” of the current global financial system, Egon is neither a market timer nor a “doom-and-gloomer,” but simply a blunt realist as to the history of debt cycles, currency destruction and speculation mania. This candid conversation includes personal narratives and objective data as to the undeniable risks in a world which has gone from less than $100T in global debt in 2000 to over $300T today. Currencies, like the US Dollar, are not sound measures of value or wealth, with the USD having lost 80% against the Swiss Franc since Egon began his professional career in 1969 and over 97% of its value against gold since 1971.
Jay and Egon also discuss how speculation wealth created in the “everything bubble” is directly correlated to unsustainable central bank liquidity. Egon reminds investors that timing the inevitable implosion of this deb bomb is irrelevant. What matters is that informed investors (rather than complacency-biased speculators with short-term mind-sets) have a necessary allocation to long-term generational wealth preserving assets like physical gold. Such allocations provide piece of mind and insurance against 1) currencies dying before our eyes and 2) bloated risk assets, from BTC to stocks, bonds and real estate, all reaching dangerous highs which always revert to more dangerous lows.
In addition, Jay and Egon trace MAM’s 1999 origins, which originated as an answer to Egon’s life-long study of, and fascination with, risk. Having enjoyed a highly successful corporate and banking career, Egon was dedicated to protecting his own accumulated wealth (and that of a circle of close investor friends) by directly owning physical gold outside of an openly fractured banking system. His singular focus on physical precious metals stored and owned in the safest private vault (and jurisdiction) ultimately grew into a global enterprise with clients from over 80 countries. Today, MAM is the world’s largest (and safest) private vaulting service for HNW precious metal owners outside the commercial banking system.