The Sun Is Setting On Faltering West & Rising For Gold

Founder @ Matterhorn Asset Management & GoldSwitzerland
October 20, 2023

Egon von Greyerz joins his dear friends and Matterhorn Asset Management advisors, Grant Williams and Ronnie Stoeferle, to address the unique risks—economic, geopolitical, military—making headlines at an alarming rate.

This timely and highly important conversation opens with the financial, political and trade moves from West to East as evidenced by the growing BRICS momentum and its near and longer-term impact on the price of gold as prosperity moves from West to East. Consumer gold demand from India and China, increased central bank demand in the East and rising gold premiums on the Shanghai Exchange suggest that the LBMA hegemony over gold pricing is shifting, as Ronnie discusses.

As to rising gold prices, Grant reminds that gold does nothing, currencies just continue to weaken. Strangely, however, investors continue to erroneously wait for gold price spikes before investing in gold, a point which Egon addresses.

Grant unpacks the failure of Western sanctions and the weaponization of the world reserve currency as the key driver away from USDs/USTs and toward physical gold. We are entering a period of tremendous geopolitical shifts for which gold’s role will be central as a wealth preservation asset, a role which Egon has steadily maintained for more than two decades. Despite such a clear direction, many Western individuals fail to make physical gold a core part of their portfolios, an issue which Ronnie addresses at length—giving particular attention to misunderstood bond markets and the total return losses therein.

Grant adds his thoughts on gold allocation percentages in the context of gold’s global market share, which is finite despite fiat money’s infinite (and hence inflationary) range. The West, unlike the East, has not fully understood inflation risk and portfolio reactions to the same.

Egon then asks if we are looking at an existential crisis given increased global conflicts, to which Grant and Ronnie add their insights/concerns. Grant sees a complete failure of diplomacy before, during and after events in Ukraine and Israel made headlines. As Egon argues, it seems the US policy is little more than sending money and weapons at every problem, not statesmen.

Of course, gold can’t protect investors from every risk making headlines today, but it has a clear role in protecting against financial risk, a point which Ronnie, Grant and Egon address at length in the closing minutes of this spirited discussion.

Gold Switzerland

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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


The melting point of gold is 1337.33 K (1064.18 °C, 1947.52 °F).
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