Physical Gold’s Proven Defeat of the Dollar
In a recent conversation with Jesse Day of Commodity Culture, Matthew Piepenburg, Partner at VON GREYERZ, explains why the many themes which the VON GREYERZ enterprise has been tracking (and warning) for years are now moving from the incremental to exponential phase. Reading between the lines of policymakers from the Department of the Treasury to the White House, Piepenburg reveals how the erosion of the USD’s hegemony and purchasing power are no longer a debate but open financial wounds which policy band-aids can no longer hide or cure. This becomes objective/proven the moment one considers longer-term and nominal “gains” in U.S. and global stocks and bonds measured in gold rather than paper currencies. The data he shares here makes the case for gold as a superior store of value undeniable.
Equally undeniable are the growing debt levels and the widening gap between annual U.S. growth percentages, which are now dwarfed by annual spending percentages. Policymakers afraid to say the “QE” word out loud are running out of verbal magic and complex, indirect QE tricks to hide the deliberate dollar debasement policies to partially inflate the USA out of debt. These policies, which benefit broken sovereigns, do not benefit citizens who still measure their wealth in Greenbacks or continue to trust the Wall Street meme that bonds are “safe,” “risk-free,” or historical hedges against stock market volatility – all of which are objectively unsupported by mathematical fact.
Piepenburg further addresses his belief that rising debt levels and insufficient income streams will cause the U.S. to eventually revalue its still un-audited gold reserves to market price. Gold, which was hitherto the dollar’s “enemy,” is ironically becoming DC’s last hope, a strategy of realism and math which Piepenburg explains in simple terms.
Piepenburg also gives special attention to the silver market, explaining why it, along with gold, is only in the very first chapters of an historical bull run. Precious metals are no longer going to be debated allocations in a global debt spiral, but essential. Those who foresee these realities will be the most protected in the portfolios of the future, a topic by which this timely conversation closes with blunt-speak rather than market-speak.
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