“Hyperinflation is a currency event. Not a demand driven event. Hyperinflation results from currencies being debased. This is what will revalue gold. Against gold – stocks, bonds and real estate will fall dramatically. There won’t be enough gold for the demand that’s coming, except for at prices which will be multiples of current prices.”—Egon von Greyerz of Matterhorn Asset Management
Life as we knew it is over, at least for the foreseeable future. The entire world is now in recession. Companies have shut down permanently. Jobs have been lost that will never come back. Eventually, the virus will run its course and people will be allowed to come out of their homes, but the fear will remain. Fear of being in crowded places, fear of the virus returning, fear of losing jobs and income. Consumers will cut back. Businesses will cut back. The economy is going to feel a world of hurt for some time to come.
Of course, our government and central bank have made it very clear there is no end to how much money will be printed and how much liquidity will be poured into the system. In a world of currency debasement and high inflation, gold will be the clear winner. But, what about the stock market? As we enter a severe recession and as companies cut back on buying back their stock and as the consumer pulls in the reigns, how can the stock market remain at such elevated levels? How could the average investor not want to be in a safer place and have some insurance against all the uncertainly and more economic hurt to come?
As reported by GATA Chairman Bill Murphy, the COMEX (NY Gold Exchange) and LBMA (London Gold Exchange) are experiencing a shortage of inventory. Word is, these two exchanges are looking at default/force majeure squarely in the face. A default would send gold dramatically higher.
No doubt, the COMEX and LBMA will not go down without a fight. Last week, via a series of “smoke and mirrors”, the two exchanges tried to give Wall St the impression that everything is under control, but behind the scenes they are panicking. The physical gold is not there.
On the retail side, physical gold (and silver) are in massive demand and supplies are limited. The public is finally starting to “get it”, which is now being reflected in the premiums. But, this is only just the beginning. When gold exceeds $2,000/oz, the public will jump in with both feet and pay whatever the going cost might be. That is, if there is still inventory available for purchase. As reported, at nauseam for several years now, gold and silver have been a long time victim of price manipulation by the Powers To Be. So, that means gold and silver at current prices are STILL extremely undervalued. So, you can take advantage of the “gift” or stand aside and watch one of the greatest bull markets ever take place right before your eyes.