Author: Egon von Greyerz

Real GOLD versus Pokémon GO? That’s a simple choice for most people because shortly after launch there are already more than 30 million users of the game Pokémon GO (PG). Gold has not for a long time attracted the same interest but that is likely to change in the next few months and years. Not that gold and PG in any way are competing in the same marketplace. In today’s virtual world, a new ground-breaking virtual game will always attract more interest from the average individual than gold. Whilst gold is a barbarous relic as John Maynard Keynes called it, … Continue reading →

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The central banks are leading the world into a black hole and have no idea what a disaster they have created. What initially seemed like a nice money spinner for the private bankers in 1913 when the Fed was set up has resulted in a $2 quadrillion (at least) monster that is now totally out of control. Banks and central banks are experts at forging money During the last hundred years, the Ponzi scheme seemed to work beautifully under the guise of Keynesianism. So whenever there was a problem in any economy in the world, all that was needed was … Continue reading →

The post Central Banks Will Create an Historic Gold Rush appeared first on LewRockwell.

The central banks are leading the world into a black hole and have no idea what a disaster they have created. What initially seemed like a nice money spinner for the private bankers in 1913 when the Fed was set up has resulted in a $2 quadrillion (at least) monster that is now totally out of control. Banks and central banks are experts at forging money During the last hundred years, the Ponzi scheme seemed to work beautifully under the guise of Keynesianism. So whenever there was a problem in any economy in the world, all that was needed was … Continue reading →

The post Central Banks Will Create an Historic Gold Rush appeared first on LewRockwell.

Investors globally have never faced the risk of the magnitude that we are now exposed to. But sadly very few are aware of the unprecedented risks the world is facing. For the ones who understand risk and take the right decisions, it will “lead to fortune”. Only very few will choose that route. Instead, most investors will continue to live in the hope that current trends will go on forever but sadly these people will end up “in shallows and in miseries”. The risk is now staring us all right in our face but very few people can actually see … Continue reading →

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When David Cameron decided to let the British people vote on Brexit, he did not realize that he would open a real can of worms. Before the referendum, I declared that Brexit would not be the reason for a collapse of the world economy but that it could be the catalyst for such a collapse. We have only seen a few days’ reaction with heavy intervention from central banks around the world but judging by the massive volatility we have seen so far, there is now a very high likelihood that a major secular decline in the world economy will … Continue reading →

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Between 1999, when gold bottomed at $250, and the 2011 peak at $1,920 there was only one major correction lasting 8 months in 2008. The ensuing correction from the 2011 top at $1,920 of almost $900 seemed to take an eternity until it finally finished in December 2015. During those four years, it was always clear to me that the uptrend in the precious metals was still intact although I must admit that I did not expect a correction of that duration. But after a long life in markets, patience becomes a virtue that is absolutely essential. If your investment … Continue reading →

The post The Goldwagon Won’t Wait appeared first on LewRockwell.

Most people believe that the era we live in is totally normal. This is the case whether you live in a war-zone or in “Shangri-La”. It is the same with the economy. Everybody in the West today believes that stocks always go up and that property grows to the sky and that government bonds are the safest investment you can own. So these strong markets have been the norm for the average investor for the last 100 years. Everything they touch has gone up and any down move is only a correction. And so far investors have been right to … Continue reading →

The post Devastation of the World Economy and All Mankind appeared first on LewRockwell.

We know that central banks and governments have lost the plot. When the crisis started in 2006, US short rates were 5%. In 2008, they were down to zero and have virtually stayed there ever since. A crisis package of $25 trillion was thrown at the financial system. This is what the likes of JP Morgan and Goldman told the Fed they had to do to save the bank(-ers). Ten years later the world financial system is in a mess that is exponentially greater. World debt has exploded, most governments are running deficits and the financial system is balancing dangerously … Continue reading →

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The global economy turned down in earnest already in 2006 but with a massive worldwide printing and lending programme, the world has had a temporary stay of execution. But the effect of this fabricated money has now come to an end. And what else would you expect. To print money that has no value or to lend money that doesn’t exist can never create wealth or save anybody. The downturn will soon start to accelerate and eventually lead to a total failure of the financial system and sovereign defaults. But no one must believe that there will be a sudden … Continue reading →

The post How Long Has It Got? appeared first on LewRockwell.

Central Bank heads believe they are magicians who can wave their magic wand to create whatever economic conditions they desire. But the problem is that they are consistently wrong in their assessment of the economy so they don’t know what to do with the wand. Also, the wand is not magic but just bogus. And this is the dilemma of all central banks. They are given unlimited powers to manipulate monetary policy and to print money.But when you give infinite powers to someone who can neither assess the situation properly nor understands the consequences of his actions, it is like … Continue reading →

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We ended 2015 as yet another year when most investors felt safe with their stocks, bonds, property and other investments. But sentiment can change very quickly and since the year end the Chinese market is down 14%, the S&P down 6% and most global markets down 6-10%. Most investors had been hoping that the investment Shangri-La would continue for another year? Little do they realise that current values in no way reflects real values or risk. As we know, markets can remain irrational for a very long time. The risks that one day will bring the world economy down have … Continue reading →

The post Is a 90% Fall in Stocks Ahead? appeared first on LewRockwell.

Today when gold in US dollars is making a new correction low, the paper shorts are elated. They believe they can win this game of frightening every gold investor to sell their holding. But this elation is likely to soon turn to desperation. Supply tight in gold and silver As I have discussed many times, the physical market in gold and silver is very tight. Bullion banks have low stock levels and central banks have leased or sold a major part of their gold. But since they refuse to be properly audited they are desperately trying to hide the real … Continue reading →

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We just had another confirmation that banks are dealing in sums which they don’t understand themselves. A junior employee in Deutsche Bank (DB) paid $6 billion to a hedge fund which was the gross value of a position. He should have paid the net. That in a nutshell shows the uncontrollable exposure of the banking system which will lead to its downfall. How can a junior employee in a major bank pay the incredible sum of $6B without any controls whatsoever? This is a world gone mad. Governments print trillions, banks issue derivatives in the quadrillions and banks transact in … Continue reading →

In my most recent article, A Stock Market Collapse and Surge in Gold is Imminent, I discuss the excesses in the world and the effects that will have on the financial system and the stock market as well as on the gold and silver prices. Yes, some readers might find that a forecast of $10,000 gold and $500 might sound sensational and not serious. Let me make it totally clear that it is not my intention to be sensational. No, what I am describing are just the consequences of total economic mismanagement by world governments and central banks for the … Continue reading →

What is currently happening in markets should be no surprise to investors who understand sound money and have been following our risk warnings in the last few years. The world has been living in cloud cuckoo land for so long that unlimited credit at zero percent, hundreds of trillions of dollars of new credit and quadrillions in derivatives were all believed to be real money and assets and part of normality. In the last couple of days we can see how quickly euphoria changes to fear. The Dow went down over 500 points on Friday and started down over 1,000 … Continue reading →