Gold’s Key Indicator
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After the recent bank collapses and string of interest rate hikes, Egon von Greyerz shows his deep concerns for the U.S. monetary system.
“It’s not that gold is getting incredibly strong [by itself], it’s that everything else is getting weaker, and that in particular means your currency, whether it’s the world reserve currency, British pound sterling etc.”
In March, SVB Financial Group, the parent company of Silicon Valley Bank (SVB), filed for bankruptcy. Signature Bank, a New York-based regional bank also went under, the third-biggest bank failure in U.S. history. Greyerz argued the moves portend a larger move. “We have reached the end of this monetary era,” said Greyerz. “It doesn’t happen overnight and it’s taken longer than I expected, nevertheless it’s happening and..it’s starting to accelerate.”
Investors have been fleeing the banking sector. Year-to-date the SPDR S&P Bank ETF is down 22%. Gold has benefitted, trading above $2,000 an ounce for much of 2023. The fear trade has also benefited the gold miners, which are up 10% year to date. Coverage of Deutsche Goldmesse 2023 sponsored by Defiance Silver.
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Egon von Greyerz – Founder and Managing Partner of Matterhorn Asset Management (MAM) and GoldSwitzerland based in Zurich. Egon forecasted the present problems in the world economy already in 2002 when he recommended to investors to allocate 50% of assets into physical gold (at $300) stored outside the banking system. Egon began as a banker in Geneva and was thereafter Finance Director and Vice-Chairman of a FTSE 100 company in the UK. He makes regular media appearances on CNBC, BBC and King World News and speaks at investment conferences around the world. MAM (founded in 1999), specialises in wealth preservation. GoldSwitzerland buys, sells, transfers and stores physical precious metals for private investors and institutions outside the banking system. His website is www.goldswitzerland.com.
