Greyerz:  “Eric, as we have discussed in recent interviews, gold and silver will surge in September and they will both make substantial new highs in 2014.  Gold will go up hundreds of percent from current levels, and possibly even thousands of percent.

But, sadly, gold going up means a total mismanagement of the world economy, and the disastrous destruction of paper money....

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“This destruction will come about through endless money printing and credit creation.  So, unfortunately gold going up is not good news for the world.  Instead, it reflects a world in chaos, and this chaos will only accelerate over time.

Gold surging, which it will do, means a world economy that is crashing.  This is virtually guaranteed to happen.  I know that most King World News readers and listeners will be well protected with an important part of their assets in gold, but they must also understand what kind of world in which they will be living.

When gold goes to $10,000, $50,000, or, in a hyperinflationary collapse, maybe even 100 trillion dollars, that will be a world which will be much less pleasant to live in.  In the West, much less than 1% of the population will have enough gold to protect themselves financially.

To be part of that minority is likely to be very beneficial.  But to be wealthy when everyone around you is not can have its own dangers.  I have already stressed many times the importance of a low profile, and the fact that it will be unwise to flaunt wealth in the future because we are very likely to see a world with total wealth destruction.

This will include the value of paper money crashing, stock markets collapsing (in real terms), bond markets collapsing, a failing financial system, and surging interest rates.  Pensions will either be worthless or virtually worthless.  We will also see that countries are in no position to look after their people.

This means their will be no social security, and failing infrastructure such as hospitals, schools, transportation systems, roads, police protection, and fire services.  This will also lead to social unrest and crime.  We could well see a combination of anarchy and police or totalitarian regimes.

Of course the risk of major geopolitical conflicts is growing substantially as we have seen in the last week or so.  I think the picture I’ve painted is already sufficiently bleak.  I wish that none of these things would transpire, and they may not, but the risks are higher than ever.  But let me make it very clear, the risks are here now, today.  This is what we all have to be aware of and prepare for.

Circling back to gold, Eric, remember that if within the next 12 months gold reaches $2,500 and silver $70, in inflationary terms that will be absolutely nothing.  The 1980 gold peak of $850 would today be in excess of $7,000 (when adjusted using real inflation).  And silver, which peaked at $50 in 1980, would now be over $400.

We must also bear in mind that in 1980 the U.S. federal debt was $1 trillion, and today it’s $17 trillion.  Total world debt was probably around $10 trillion to $15 trillion in 1980, and today it’s $250 trillion.  So the exponential growth in debt will clearly lead to exponential growth in the price of real money, which of course is gold.

For 21 years (1980 to 2001), governments succeeded in suppressing the gold price, from $850 to $250.  And in the last 13 years they have used all of the tricks in their repertoire to keep the gold price down.  In spite of that, gold is up almost six times in price.

So, bearing in mind the price peaks in 1980, adjusted for real inflation, my targets of $10,000 for gold and $500 for silver are extremely realistic, and this is without any more major money printing.  But since the world is guaranteed to experience unlimited money printing in the next few years, these targets are ultra-conservative.

So in the world we are likely to encounter in the next few years, nothing will preserve wealth better than gold and silver.  But of course, Eric, it must be physical gold and silver, and it must be kept outside of the banking system.”

© 2013 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

The audio interviews with Dr. Paul Craig Roberts, Art Cashin, James Turk, Eric Sprott, Egon von Greyerz, Michael Pento, James Dines, William Kaye, Grant Williams, Hugo Salinas Price and Marc Faber are available now. Also, other outstanding recent KWN interviews include Jim Grant and Felix Zulauf to listen CLICKING HERE.

Eric King

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