Gold Eclipsing the Dollar – The Why, How & Who to Blame (1/2)

In Part 1 of this two-part conversation with Farzin Irani, Matthew Piepenburg offers further insights and context to gold’s evolving role in an ever-changing global landscape. 

Piepenburg opens with a biographical description of his “education” from risk assets and risk management lessons to his ultimate realization of rising currency risks in general and the consequent need for precious metal investing in particular. 

Piepenburg explains how the notion of “money” (and the role of gold) has been deliberately misunderstood and mal-advised in traditional educational and financial systems, from Western graduate schools to Wall Street advisory “experts.”

Fortunately, and after years of gold outperforming even a Fed-supported equity bubble, the significance of gold can no longer be denied. The traditional and “official” gold-bashing narratives have been “losing their teeth” in a backdrop wherein fiat money is openly losing both purchasing power and credibility.

Piepenburg walks through recent history to show how old sources of USD-demand (from energy trades and global debt markets) are running into a de-dollarization wall and growing distrust of Uncle Sam’s overly-indebted and weaponized IOUs.

The evidence and desperate measures now taken by the US to address its debt crisis, and hence its currency crisis, confirms that the “jig is up” on the old system. As the greenback (and constructively “defaulting” 10-Year UST) loses purchasing power, gold, now a Tier-1 asset under the BIS, rises as a superior store of value among global players. The ultimate fault for this shift, according to Piepenburg, lies within the US own long history of over-spending.

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