My Blog

Eveillard - Gold & The Brutal Reality Of The Current Cycle

With global stock markets trading higher, today legendary value investor Jean-Marie Eveillard, who oversees $50 billion, told KWN, “In a way one should not confuse fluctuations in financial markets or commodity markets with the end of the world. However, I think there continues to be considerable hope on the part of many investors that the Neo-Keynesian remedies which have been in place will result in a sustainable economic recovery.”

Jean-Marie Eveillard continues:

“There does have to be the realization that the hope of an economic recovery in the Western world will end up being a delusion. Investors and authorities who believe there will be a recovery are deluding themselves. But hey, hope springs eternal.

There is the continued stimulus being provided by the Federal Reserve, and of course some of that newly printed money ends up in the equity markets....

Continue reading the John-Marie Eveillard interview below...

To hear which company has one of the highest grade gold deposits

in the entire world, as well as a number of other

extraordinary projects click on the logo:

“This makes investors feel like the economic situation is turning around, even though that’s not the case.

From a bigger picture perspective this is just a cycle that changes every now and then. Up until World War I it was the British economy which was the most powerful in the world. If you go back several centuries it was the Chinese economy that was powerful.

After World War I it was the American economy which rose to center stage, and after World War II, it was even more obvious the American economy was the powerhouse of the world. So the cycle is changing once again.

Now we see the economic power heading East once again, this time to India and China. Those two countries have much less debt, and they have tens of millions of citizens moving to middle-class status. So they are the future. This is not all that shocking from a historical perspective because it happens every few generations.

This does not mean, Eric, that there will be no investment opportunities in the US, Europe or Japan. There will continue to be some, but one will have to keep in mind that the future is elsewhere.”

Eveillard also added: “Right now, every time there is concern about the system investors flee to what they perceive as the safety of key bond markets in the US, Europe and Japan. But there is too much public debt in the US, Japan, and even in Europe as a whole. There is even the potential for a eurozone breakup. Once the authorities run out of room to kick the can down the road, then there will be a big problem. As I said, maybe there will even be a eurozone breakup.

So investors need to understand that the reality is the pure paper money system is slowly unraveling, and the only genuine safe haven for investors is gold, which has been money for thousands of years. The world has gone through tough cycles many times, and today, as it was back then, gold is the ultimate asset for wealth preservation.”

The interviews with John Embry, Egon von Greyerz, James Turk, Dr. Stephen Leeb, John Hathaway and legendary Art Cashin ($612 billion UBS) are available now. Also, be sure to listen to last week’s line-up of other KWN interviews which include Gerald Celente, Don Coxe ($538 billion BMO) and Eric Sprott by CLICKING HERE.

Eric King

KingWorldNews.com

To return to BLOG click here.