Recently, gold expert Egon von Greyerz had clearly explained that the government has already gone too far and can no longer do anything to correct their mistakes. He continues to say that only one percent of world financial assets are in gold, so gold is nowhere near a bubble.
By GoldBroker.com
December 20th, 2012
247 Bull
During his brief visit to Australia, Egon von Greyerz, founder of Matterhorn Asset Management and member of Goldbroker.com’s board, has clearly explained that the governments have already gone too far and that they can no longer do anything to correct their mistakes.
Egon von Greyerz said that it’s not the gold price that is going up, but rather the fiat currencies that are constantly losing their purchasing power, as gold has maintained its purchasing power for the last 5,000 years. Only one per cent of world financial assets are in gold, so gold is nowhere near a bubble.
Egon von Greyerz thinks that people have to consider that anything within the banking system is at risk. Whether you buy an ETF [Exchange Traded Funds] or whether you buy gold through a bank:
“Sadly the whole banking system is interconnected. So, every bank deals with another bank worldwide. So if somebody puts US dollars into an Australian bank, that bank will put it back in New York. So, I believe every bank in the world is at risk.
Now, hopefully the banking system will survive. But the risk is that it won’t. And therefore, you should take all the measures you can to protect your assets by buying outside of the banking system, storing it outside of the banking system, eliminating counter party risk and having direct access personally to the vault where you store your gold.”
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