This Is It…Big Mac Case For Gold

June 11, 2020
Founder @ Matterhorn Asset Management & GoldSwitzerland

Ever since gold passed the “Maginot” price line of 1350 in 2019, the case for a secular bull market in precious metals has only grown stronger. Egon reminds viewers that history is merely repeating itself. From 3rd century Rome or the John Law era of 1720 to today, a classic pattern of currency mismanagement in the backdrop of unsustainable debt levels is once again playing out in real-time despite the false hope that central banks, the IMF or other policy makers can “save us.” 

The rising tensions within the post-Brexit EU serve as further evidence of the collapse-template for such debt-based economic systems. Egon addresses fissures within the European Community due to broken economies in Italy and Spain that are causing northern member countries to resist further support for their southern neighbors, as the recent German high court decisions challenging ECB policies indicate. 

Meanwhile, the race to the bottom in distrusted paper currencies around the globe continues as the purchasing power of gold greatly outpaces that of fiat currencies. As Egon further reminds, the recent fall in the gold-silver ratio as silver prices rise is just another signal that silver will lead the over-all trend in strengthening precious metal fundamentals going forward. 

Despite the clear “suckers rally” in risk assets, Egon discusses the relative outperformance of gold vis-à-vis exchanges like the DOW while warning of the inevitable (hyper-) inflation to come, using none other than the “Big Mac Indicator” to make this reality all-too clear.

Egon von Greyerz
Founder and Managing Partner
Matterhorn Asset Management
Zurich, Switzerland
Phone: +41 44 213 62 45

*********

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

Nearly 40 percent of all gold ever mined was recovered from South African rocks.

Gold Eagle twitter                Like Gold Eagle on Facebook