Lynette Zang and Egon von Greyerz discuss Egon’s recent Tweet “THIS IS IT!” including the future of the dollar stocks, gold & silver and the gold-silver ratio.

 

 

Ever since gold passed the “Maginot” price line of 1350 in 2019, the case for a secular bull market in precious metals has only grown stronger. Egon reminds viewers that history is merely repeating itself. From 3rd century Rome or the John Law era of 1720 to today, a classic pattern of currency mismanagement in the backdrop of unsustainable debt levels is once again playing out in real-time despite the false hope that central banks, the IMF or other policy makers can “save us.” 

The rising tensions within the post-Brexit EU serve as further evidence of the collapse-template for such debt-based economic systems. Egon addresses fissures within the European Community due to broken economies in Italy and Spain that are causing northern member countries to resist further support for their southern neighbors, as the recent German high court decisions challenging ECB policies indicate. 

Meanwhile, the race to the bottom in distrusted paper currencies around the globe continues as the purchasing power of gold greatly outpaces that of fiat currencies. As Egon further reminds, the recent fall in the gold-silver ratio as silver prices rise is just another signal that silver will lead the over-all trend in strengthening precious metal fundamentals going forward. 

Despite the clear “suckers rally” in risk assets, Egon discusses the relative outperformance of gold vis-à-vis exchanges like the DOW while warning of the inevitable (hyper-) inflation to come, using none other than the “Big Mac Indicator” to make this reality all-too clear.