Why, as Everything Changes, Gold’s Trust Never Changes
In this brief yet rich discussion, Matthew Piepenburg, Partner at VON GREYERZ, joins Darrell Thomas at VRIC Media to discuss gold’s larger and essential role amidst a flurry of admittedly dynamic headlines, including concerns of an ongoing conflict in the Middle East.
Piepenburg understands and, of course, addresses the rising market, inflationary, credit, currency and geopolitical risks which will ultimately be strong catalysts and tailwinds for rising gold. In fact, for decades, the executives at VON GREYERZ have been warning of precisely such risks. But the core narrative remains quite simple, historical and mathematical: Gold is rising because over-expanded, and hence diluted paper currencies are falling. For thousands of years, gold, which is real money, has protected far-sighted investors in such repeated scenarios as a superior store of value to sovereign currencies. The USD is not, and will not be, an exception to this blunt fact.
The evidence of a critical turning point towards gold’s superiority over dying paper money is literally all around us. Recent years of increasing de-dollarization trends, record levels of central bank gold stacking, commercial bank gold projections and even BIS confessions of gold’s superior role as a strategic reserve asset speak loudly for themselves. Even the most respected names in the stock and bond markets are uniformly recognizing gold as an essential allocation.
Piepenburg explains recent gold selloffs (sovereign liquidity traps, algo trades, levered ETF sales) while placing the metal’s longer-term wealth preservation role as “life insurance for dying currencies” into a sober perspective. Despite so many radically changing headlines, events and financial conditions, gold’s role as a trusted and essential store of value in a backdrop of rising financial distrust remains unchanged.
********
