Egon von Greyerz: Paper Silver is Toxic
Tom welcomes back Egon von Greyerz, Founder and Managing Partner of Matterhorn Asset Management AG based in Switzerland.
Egon discusses the race to the bottom trend with the dollar and every other currency. The Biden/Yellen dream team will continue to print unlimited amounts of money, and he expects the debt to accrue far beyond 40 trillion over the next four years. He says, “The inevitable trend with currency is down, but there will be volatility along the way.”
The reality is that debt destroys long-term growth, but governments believe that you can “solve” debt with more debt. However, you can’t live above your means forever. This era will end with hyperinflation and collapsing currencies. Today’s inflation metrics are a con and don’t reflect reality. We are starting to see inflation in commodity prices and food.
Egon cautions that you have to be patient because inflation and collapse will take longer than you might expect. We will have a combination of inflation and deflation, and the most important thing is for people to protect themselves from these forces. Some assets, in real terms, will become relatively cheap. He expects the Dow to gold ratio to reach or even exceed 1 to 1. “When hyperinflation kicks in, it can happen very quickly.”
Paper gold is traded by the banks at massive multiples to annual production every day. This vast amount of trading and gold swaps is 99% paper and is done to keep the gold price down. No sane trader would sell millions of gold ounces in a short period, but this happens regularly.
He explains the forces that are arrayed against those like WallStreetBets who want to fight the system. Egon argues that the system has unlimited resources with which to oppose such activity. He is skeptical that a raid on silver will accomplish anything, but people will come to understand that paper is worthless in the long run.
Time Stamp References
0:00 – Intro
0:36 – Dollar Purchasing Value
11:00 – Biden/Yellen Dream Team
12:45 – Inflation & Deflation
17:30 – Too Much… Is Toxic?
19:17 – Paper Gold & Price
22:00 – Manipulation
25:11 – Fake Gold & Silver
28:59 – Reddit David Vs. Goliath
33:50 – Silver Catalyst & Trends
33:55 – Best Things in Life
38:02 – Wrap Up
Talking Points From This Episode
- Currencies in a race to the bottom.
- Inflation and government solving debt with more debt.
- Paper gold and manipulation.
Egon von Greyerz is Founder & Managing Partner of Matterhorn Asset Management AG. He started Matterhorn Asset Management (MAM) in 1999 as a private investment company. From the very beginning, wealth preservation was an essential cornerstone of the company. In early 2002, they believed that financial and economic risk in the World was getting uncomfortably high. So that year, they made substantial investments in the physical gold market at $300 on average.
As gold started to rise in the early 2000s, demand for physical gold increased, and in 2005 they set up a regulated company in Zurich – Matterhorn Asset Management AG. A couple of years later, they formed GoldSwitzerland, which is the precious metals division of MAM.
Egon was Born with both Swiss and Swedish citizenship. His education was mainly in Sweden. He started his working life in Geneva as a banker and after he spent 17 years as Finance Director and Executive Vice-Chairman of Dixons Group Plc.
Since the 1990s, Egon has been actively involved with financial investment activities, including mergers and acquisitions and Asset allocation consultancy for private family funds. This led to the creation of MAM, an asset management company based on wealth preservation principles. MAM is now the World’s leading company for physical gold and silver outside the banking system, directly owned by the investor. Their four vaults include the most immense and safest gold vault in the World, located in the Swiss Alps. Clients are High Net Worth Individuals, Family Offices, Pension Funds, Investment Funds, and Trusts in over 75 countries.
Egon makes regular media appearances and speaks at investment conferences around the World. He also publishes articles on precious metals, the world economy, and wealth preservation.