Chart usGOLD   Chart usSILVER  
 
Food for thought
Gear today, gone tomorrow
British stock market adage  
Search for :
LATEST NEWS  :
MINING STOCKS  :
Subscribe
Write Us
Add to Google
Search on Ebay :
PRECIOUS METALS (US $)
Gold 1297.25-7.13
Silver 20.79-0.08
Platinum 1471.15-6.60
Palladium 865.80-3.03
WORLD MARKETS
DOWJONES 17087-30
NASDAQ 447418
NIKKEI 15255-74
ASX 556733
CAC 40 43767
DAX 975419
HUI 239-1
XAU 1000
CURRENCIES (€)
AUS $ 1.4238
CAN $ 1.4450
US $ 1.3455
GBP (£) 0.7902
Sw Fr 1.2146
YEN 136.5120
CURRENCIES ($)
AUS $ 1.0582
CAN $ 1.0738
Euro 0.7432
GBP (£) 0.5872
Sw Fr 0.9025
YEN 101.4370
RATIOS & INDEXES
Gold / Silver62.40
Gold / Oil12.44
Dowjones / Gold13.17
COMMODITIES
Copper 3.230.03
WTI Oil 104.30-0.12
Nat. Gas 3.770.00
Market Indices
Metal Prices
RSS
Precious Metals
Graph Generator
Statistics by Country
Statistics by Metals
Advertise on 24hGold
Projects on Google Earth
What catalyst will trigger Gold’s parabolic rise
Published : December 10th, 2012
643 words - Reading time : 1 - 2 minutes
( 8 votes, 4.9/5 ) Print article
 
    Comments    
Tweet

 

 

 

 

Seldom in history are investment decisions self-evident. But today we have such a situation.

 

Gold is the only real and the only honest money. Gold reflects governments’ deceitful actions in destroying the value of paper money. For the last 100 years since the creation of the Fed and especially since 1971 when the US dollar was no longer backed by gold, paper currencies have been on a road to destruction. They have lost 97-99% since 1913 and around 80% since 1999.

 

In 2013 we will enter the final phase which eventually will lead to the total destruction of most paper currencies. The two principal factors leading to this are:

 

  • Exponential rise in government deficits

 

  • Unlimited money printing

 

There is absolutely no chance that governments can or will stop the deficit spending. Any government even mentioning the word austerity will be thrown out very quickly. And even if serious austerity measures were attempted, they would just lead to a spiraling downturn of the economy creating even bigger deficits.

 

The consequences of the massive money printing that the world will experience will be:

 

  • Collapsing currencies

 

  • Hyperinflationary depression

 

  • Social unrest

 

  • Wars

 

So will these events happen in a long drawn-out fashion or will it all happen abruptly? Both the technical and fundamental setup we are seeing now makes it more likely that events will unravel quickly. The fragility of the world economy is greater than any time in history. Major nations such as Japan, USA, UK and most EU countries are bankrupt and living on borrowed time. And the banking system is only surviving due to false valuation of toxic assets. The situation is like an avalanche being triggered with that last snowflake being enough to set the whole thing off. The trigger could be anything from a dollar collapse, to Japan imploding or Greece exiting the EU. It doesn’t even have to be a major event due to the total instability of the world economy and financial system.

 

No one has any possibility to influence these inevitable consequences, neither governments or central banks nor individuals. The only measures that individuals can take are to protect their own assets and their family. For investors who are fortunate enough to have savings, the absolutely best way to protect wealth is to own physical gold (and possibly some silver) and to store it outside the banking system.

 

The case for gold as the ultimate wealth preservation investment is irrefutable. Whilst paper money and all assets that were financed by the credit bubble will collapse in real terms, gold will continue to represent stable purchasing power as it has done during 5,000 years.

 

For anyone who doubts what will happen to gold as government deficits surge and money printing accelerates, just look at the graph below. This shows US government debt against the price of gold. A chart of world central bank balance sheets exploding gives the same picture. And the picture tells us that a parabolic rise of debt and gold is likely to be next. This fits also with Alf Field’s technical projection that the next target is $4,500-$5,000 for gold. We could see that target already in 2013.

 

 

 


 

 

 

For anyone who believes that gold is overbought and overvalued – DON’T! As I have already said, gold just reflects the other side of paper currency destruction and will continue to do so. We recommended up to 50% allocation to physical gold in 2002 at $300. Today we would see 50% as an absolute minimum. No other asset will give the same protection as gold.

 

So 2013 could be an Annus Horribilis for the world economy, the financial system, as well as socially and geopolitically. Everyone will be affected but being prepared and protected will make it easier to deal with.

 

Click here to listen to my latest KWN interview which deals with many of the points above.

 

 

 

 

Data and Statistics for these countries : Greece | Japan | All
Gold and Silver Prices for these countries : Greece | Japan | All
Tweet
Rate :Average note :4.9 (8 votes)View Top rated
Previous article by
Egon von Greyerz
All articles by
Egon von Greyerz
Next article by
Egon von Greyerz
Receive by mail the latest articles by this author  
Latest comment posted for this article
Be the first to comment
Add your comment
TOP ARTICLES
MOST READ
TOP RATED
MOST COMMENTED
Editor's picks
RSS feed24hGold Mobile
Gold Data CenterGold & Silver Converter
Gold coins on eBaySilver coins on eBay
Technical AnalysisFundamental Analysis

Egon von Greyerz

Egon von Greyerz is the managing director of Matterhorn Asset Management AG based in Zurich Switzerland. He specialises in wealth preservation with the special emphasis on physical gold stored in Zurich outside the banking system.
Egon von Greyerz ArchiveWebsite
Most recent articles by Egon von Greyerz
7/19/2014
7/19/2014
7/17/2014
7/11/2014
7/9/2014
All Articles
Comment this article
You must be logged in to comment an article8000 characters max.
 
Sign in
User : Password : Login
Sign In Forgot password?
 
Receive 24hGold's Daily Market Briefing in your inbox. Go here to subscribe or unsubscribe.
Disclaimer