A final or total catastrophe of the currency system will occur as a result of unlimited money printing that will lead to hyperinflation. Stock markets will benefit temporarily from this QE [but we expect that the] markets will fall 90% against gold in the next few years. The correction in the precious metals [will] likely [soon] be over and we should see the metals going to new highs in 2012. Words: 450
So said Egon von Greyerz (www.goldswitzerland.com) in an interview* with Eric King.
Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!) edited ([ ]), abridged (…) and reformatted (some sub-titles and bold/italics emphases) von Greyerz’ comments to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.
von Greyerz went on to say, in part:
In summary, this is what I said (with some additions) in the interview with King:
- The current correction in gold is technical. There is very little physical selling and refiners have their order books full well into the second half of 2012.
- Technically this correction could last to the end of the year but it could end already at the end of next week. Support is at $1,530-50 and $1,410-20. Thus we could go that far down but this would be a golden opportunity to add to positions.
- The market is smelling deflation. With no QE we would have a deflationary collapse. No bank would survive a deflationary collapse. Nor would any government. There would be total chaos and no functioning financial system.
- Governments are petrified of deflation. They know the consequences which are unacceptable to them.
- Therefore, whatever governments say, there will be unlimited money printing led by the Fed, IMF and ECB plus other central banks.
- QE will not solve the problem, only kick the can down the road. There is no solution as I wrote in my latest piece “Deus ex Machina” [which is posted on munKNEE.com under the title We Have Reached the End of the Road and are Staring into the Abyss! Got Gold?].
- Worldwide QE will lead to currencies collapsing, a hyperinflationary depression and surging precious metals. Physical gold and silver (stored outside the banking system) is the ultimate method for preserving wealth.
*Click here for the KWN interview page with Egon von Greyerz – then click the ‘Listen to MP3′ link or go here for a printed version of the interview.
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Question: What do you get when you mix negative real interest rates with simulative money supply efforts by global central banks? Answer: An exceptionally potent formula for higher gold prices that could send gold to the unimaginable level of $10,000 an ounce. [Let me explain further.] Words: 1049