Today the man who remarkably predicted the collapse of the euro against the Swiss franc warned King World News that the world is in for another major surprise.
Egon von Greyerz: “There is clearly apathy in the gold market now. Gold has essentially gone sideways for the last couple of years. Gold was at these levels in June of 2013. So for two years gold has been trading sideways with some volatility….
Continue reading the Egon von Greyerz interview below…
“And of course after the big run-up from 1999 – 2011, people have become tired of gold and are much more excited by the stock market. But gold has a completely different role. People don’t buy gold for short-term gains. People buy gold to protect their careful savings of a lifetime against the unprecedented risks that the world now faces.
Most Countries Are Bankrupt
Most industrialized countries are bankrupt, particularly in the West. Economies in the West and emerging markets are now stagnating. Central banks worldwide have printed trillions of dollars and credit has grown exponentially, but very little of the printed money has reached the global economy because the banks are bankrupt. If the banks valued their toxic assets at market value, no major bank would be standing.
We know that we have major economic and financial problems facing the world, Eric, but now we also have the geopolitical problems. The situation in the Middle East is still very bad and the mass migration that’s taking place out of North Africa is going to lead to major problems in Europe.
$57 Trillion Of Additional Debt
So investors now have a bigger reason than ever to buy gold. If you look at all the risk factors facing the world, they are now greater than they have ever been. Debt has grown by $57 trillion since 2009, and all that debt has not led to any improvement in the world economy. All it has led to is more liquidity in the global stock markets, which are now massively overvalued.
On top of grossly overvalued stock markets, bond markets are now yielding zero or even negative rates. $5 trillion of government debt is now yielding negative returns. This has created a temporary situation that is totally unreal. This is why governments are trying desperately to lower rates even further in order to get the world economy going. But nothing is working.
Gold To Break $2,000, Despite Pessimism
So the reasons for owning physical gold are now greater than ever. We are not far from a major turn in the gold market and the next leg higher will take the gold price through $2,000 and much higher over time. Secular bull markets that end their cyclical bear phases can hit new highs in a hurry and I don’t expect it to be any different in the gold market. Despair can turn into euphoria in a hurry and investors need to be positioned ahead of that move or they will miss it completely.” ***ALSO RELEASED: The Gold And Silver Markets Are Setting Up For A Historic Worldwide Mania CLICK HERE.
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The audio interviews with Gerald Celente, Egon von Greyerz, Dr. Paul Craig Roberts, Andrew Maguire, James Turk, Rick Rule, Bill Fleckenstein, Dr. Philippa Malmgren, Eric Sprott, Robert Arnott, Michael Pento, David Stockman, Marc Faber, Felix Zulauf, John Mauldin, John Embry and Rick Santelli are available now. Other recent KWN interviews include Jim Grant — to listen CLICK HERE.