Ronald-Peter Stöeferle: I Believe We Will Easily go to $1500 Gold Very Soon
Ronald discusses the potential for trust problems within the banking system and why these types of issues can happen quite quickly. His annual report “In Gold we Trust” looks at the problems looming in the financial sector.
Trust in the political system, media, and science all appear to be crumbling at the moment. However, trust in the economy and the U.S. dollar remains reasonably stable. A monetary u-turn is coming, which will likely bring a recession to many countries. What will central banks do to mitigate this, and it seems likely they will counter this with more quantitative easing.
They are publishing this year’s report in Mandarin in addition to German as China is worlds biggest gold producer and consumer. De-dollarization seems to be picking up momentum. China now regularly publishes its central bank gold buying. The Shanghai gold exchange is gaining market share with plenty of gold is flowing from the east to the west. Seventy percent of all physical demand is coming from emerging markets.
There is lots of institutional demand waiting on the sidelines. Gold is reappearing on everyone’s radar, and investors are becoming more interested. Gold is in a bull market in most currencies, and overall is doing exceptionally well. The world gold price is close to all-time highs. He thinks that gold will now move into a bull market in dollar terms and $1500 should be a relatively easy target. Election years are generally favorable for gold.
Time Stamp References:
0:45 – Trust in financial markets.
3:00 – In Gold we Trust Report and China.
4:00 – Dedollarization and gold.
5:30 – Gold outlook and forecast.
9:15 – Inflation coming back?
12:40 – Modern monetary theory.
Talking Points From This Week’s Episode
• A monetary u-turn is coming
• Many asset classes are already in bubbles.
• Digital crypto assets are here to stay.
• Central banks are concerned by the lack of inflation.
• MMT theory will bring consequences.
Ronald-Peter Stöeferle is a Chartered Market Technician and a Certified Financial Technician. During his studies in business administration and finance at the Vienna University of Economics and the University of Illinois at Urbana-Champaign, he worked for Raiffeisen Zentralbank in the field of Fixed Income/Credit Investments. After graduating from university, Stoeferle joined Vienna based Erste Group Bank, covering International Equities, especially Asia. In 2006 he began writing reports on gold and gained media attention when he expected the price of gold to rise to USD 2,300/ounce when the current price was only at USD 500. His six benchmark reports called “In Gold we Trust” drew international coverage on CNBC, Bloomberg, the Wall Street Journal, Economist and the Financial Times.
In 2013 he became managing director and partner of Incrementum AG, based in the Principality of Liechtenstein. The company focuses on asset management and wealth management and is one hundred percent owned by its partners. He continues to write the annual “In Gold we Trust” as a senior advisor to Erste Group.