Gold: The Only True Asset in A Broken Global System

Matthew Piepenburg, Partner at VON GREYERZ,  joins VRIC Media founder, Jay Martin, in a compelling conversation about the revolutionary shifts happening in the global financial system—the ramifications of which all point toward gold’s increasingly central role as THE strategic reserve asset of the present and future.

Piepenburg opens with a simple theme. Namely, the risks and wide-ranging ramifications of sickening global debt levels can not be overstated enough. Everything from risk assets, currency destruction, geopolitics and social unrest to the gold price is a derivative of one simple theme: DEBT. We are also seeing revolutionary shifts from globalism to neo-mercantilism/protectionism, but as Piepenburg warns, such shifts are not surrendered easily, and that messiness in the interim is inevitable. Part of this “mess” includes rising social unrest as a direct result of the inflation and currency debasement, which failed monetary policies have directly created.

Looking ahead, as old systems, ideologies, and policies fail and new ideologies and protectionist systems rise, the transition will not be easy or smooth. Piepenburg foresees less international cooperation going forward, which means more messy wars, trade alliances and social fracturing. When asked if recent attempts to cut spending in the USA are a glimmer of hope, Piepenburg bluntly says we are way past easy solutions. At these debt levels, no one leader, ideology or policy can resolve the deficit and debt cancers spreading globally.

Martin and Piepenburg also discuss the long-sighted policies of China vs. the short-sighted policies of the US to determine which nation has the most realistic options in the years ahead, while also recognising the severe challenges facing both of these economic powers. Ultimately, more cooperation would favor both nations and the world, but the chances of such policies are slim and getting slimer in this pre-Iran war recording.

In this increasingly splintered global backdrop, the conversation turns toward gold and increasingly obvious central bank demand for the same. Piepenburg certainly enjoys gold’s price action but reminds that gold, which has outperformed the S&P for more than 20 years, is nevertheless far more than a speculation asset or even a volatility hedge. Instead, gold is emerging as THE central global strategic reserve asset, as evidenced by moves taken by even the BIS, the IMF or the COMEX outflows. This is not a fable but a fact. Gold is now clearly a superior store of value than fiat currencies and sovereign IOUs of all stripes.

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