Central banks

Since every currency system in history has collapsed, it is quite a certain bet that this one will too. For the few who have savings, wealth preservation in physical gold and silver is essential as insurance against yet another failed currency and financial system.

Egon von Greyerz and Ronni Stoeferle conclude their two-part Zurich discussion by addressing gold’s role in the context of current rate, currency and bond market forces.

The next stage of the inflationary cycle that we are currently traversing will involve efforts to control the prices by the authorities, which will logically trigger even more pronounced shortages in a production chain that is already greatly weakened by the sanitary crisis and by the rise in transport and energy costs.

Kevin Smith & Tavi Costa make the very compelling case that gold, silver and the precious metals mining companies are poised for tremendous upside ahead, as part of the Great Rotation they see coming.

Singapore increased its gold reserves by about 20% earlier this year in a largely under-the-radar move that saw holdings expand for the first time in decades.

Egon and Ronnie discuss their individual journeys toward recognizing the timeless, paramount, yet oft ignored, role that gold plays in intelligent wealth preservation and risk hedging in a market landscape that is becoming increasingly centralized. As Ronnie observes, real capitalism requires failure, or what the Austrian School of Economics would describe as “constructive destruction.”

The ECB is making a mockery of the world: it is shirking its responsibilities (printing money, zero interest rate), it is being lax with the banking system (insufficient capital), it refuses to recognize the damage it is causing (bubbles in equities, bonds and real estate), it refrains from lecturing governments with chronic deficits (France, Southern Europe), it is displaying objectives that are not within its direct competence (climate), and it is designating scapegoats in the event of a crash! Signs of loss of control and the beginning of panic.

In Part II of Egon von Greyerz’ two-part conversation with Cambridge House’s Jay Martin, Egon candidly digs deeper into the realism rather than sensationalism of the current macro headwinds and the inevitable implosion of the global financial/monetary system.

These interventions on the futures markets now only have very transitory effects, and at the same time, they are reinforcing the tensions on the physical side. Each enforced correction on the paper market prompts a veritable run on the physical metal. This holds true for the entire metals compartment (whether precious or otherwise), with all the metals finding themselves in backwardation with each new raid.

Serbia has increased its gold reserves to 37 tonnes and moved them to the treasury of the central bank from Switzerland's Bern, governor Jorgovanka Tabakovic said.