Willem Middelkoop: The Big Reset Is Coming with Gold Going to $5,000
Willem discusses how the Bretton Woods system created our current financial system and how that system is nearing its end. Many countries around the world like China are preparing for a new world monetary system. Precious metals futures markets have a lot of paper manipulation occurring. Both China and the United States have a vested interest in low gold prices. The Chinese like low prices because they are accumulating and the U.S. Government prefers it because it makes the dollar look acceptable.
At some point, gold will be revalued, so it’s a good idea to have some of your investments in gold equities as historically they do very well during a monetary reset. He feels that gold could quickly move north of 2000 dollars towards 5000. We could expect something like the 1970-1975 where the gold price jumped, and we saw a similar price move in the early 2000’s.
Two parts of the mining cycle are of particular interest to Willem. The first is when an initial discovery is made by a small exploration company. Then there is also the development stage company when it begins production and gets cash-flow. His fund likes to find companies that are likely to be acquired by major companies.
While they have around 100 positions in their fund, they only have 40 or 50 companies where they put serious money. He says, “You need to spread your risk.” They expect shortages to develop in silver, palladium, and zinc over the next few years. He discusses some of their various holdings in energy and mining companies.
Talking Points From This Week’s Episode
• Bretton Woods financial system is coming to an end.
• Both China and the U.S. want cheap gold prices.
• Discusses types of companies they invest their fund in.
• Expects shortages in key commodities over the coming years.
About Our Guest
Willem Middelkoop is the founder of the Commodity Discovery Fund and is a writer. He became a well-known personality through his work as a stock market commentator for the Dutch business television channel RTLZ. Middelkoop predicted the onset of the credit crisis in his book “Als de dollar valt” (If the dollar falls) – 2007. Subsequent publications were “De permanente oliecrisis” (The permanent oil crisis) – 2008, “Overleef de kredietcrisis” (Surviving the credit crisis) – 2009, “Goud en het geheim van geld” (Gold and the secret of money) – 2012, and The Big Reset – 2013. In total, he sold more than 100,000 copies of his books.