In a recent interview, Egon von Greyerz of Matterhorn Asset Management said that the credit bubble is going to accelerate dramatically while failures within the system continue. This will lead to gold reaching $3,500 to $5,000 in the next 12 to 18 months.
July 13, 2012
King World News
Today Egon von Greyerz told King World News, “The credit bubble we’ve had, for at least 40 years, is going to accelerate dramatically, and the failures in the system will continue.” Egon von Greyerz, who is founder and managing partner at Matterhorn Asset Management out of Switzerland, also said, “I see gold reaching $3,500 to $5,000 in the next 12 to 18 months.”
Here is what Greyerz had to say about the ongoing financial crisis and where we are headed: “There is a fire in almost every country in Europe. The US is going to catch fire also. There will be a catalyst coming soon, probably some concerted action of QE or money printing between the Fed, IMF and the ECB. That will happen as a result of the economies, worldwide, collapsing.”
Egon von Greyerz continues:
“Just look at the unemployment. We’re looking at 25% unemployment in many countries. The US is at 23% (unemployment) if you count it correctly. Youth unemployment is 50% in many countries. This is a disaster for the world and the social side of this will be terrible.
So the catalyst could come from anywhere, Eric, but the money printing will be part of the next move in gold, that’s for certain....
The printing of money will lead to collapsing currencies, and investors buying gold at any price.
Of course the banks don’t have the physical gold to satisfy their commitments. Central banks, and most probably the Fed, don’t have the gold they say they have. The 8,000 tons the US government is supposed to hold is probably not there.
The IMF’s 3,000 tons is probably double-counted and not there either. And banks don’t even have the allocated gold they say they have. We have proof of that, and I know you talked to Stephen Leeb the other day and he said the same thing.
The effect of this is the paper markets will not be trusted. So people will rush into physical gold. I see gold reaching $3,500 to $5,000 in the next 12 to 18 months. Within 3 years, I see the gold price reaching at least $10,000.”
Greyerz had this to say regarding silver: “I think silver will outperform gold. It looks like the upward correction in the gold/silver ratio is finishing here, which means that silver will start going up a lot faster than gold in the next few months.
I don’t think it will be long before silver goes back to $50, and in the next 12 to 18 months we will be well above $50. In a world where most assets will rot, it’s critical to hold assets that won’t decay and that is gold and silver. And they have to be held in physical form.”
Greyerz also added: “The credit bubble we’ve had, for at least 40 years, is going to accelerate dramatically, and the failures in the system will continue. Because of that there is a distrust in the government’s ability to govern, and there’s a distrust in the financial system. We will continue to have failures like Lehman, MF Global and PFG. They will be much bigger and people will start to realize the banking system is not safe.”
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