3 Experts Speak to Gold’s End-Game in the Great Inflationary Pendulum Swing

As large swaths of the world gather to follow the best names in “round-ball” football, we’ve gathered 3 of the best names in the global financial and precious metal playing field to discuss critical themes and pendulum swings in the broader economy.

Matterhorn Asset Management founder, Egon von Greyerz, sits down with Matterhorn advisors Grant Williams and Ronni Stoeferle to address COVID’s impact on extreme monetary and fiscal policy as good as the direct implications this has for the ongoing inflation/deflation debate in general and longer-term gold pricing in particular.

Despite tremendous respect due to deflationary thinkers like Lacy Hunt and David Rosenberg, the view shared here is clearly an inflationary direction for the coming years. As Grant reminds, this requires entirely new approaches to prior portfolio construction as good as deeper examinations into individual timing and risk profiles.

All 3 agree that inflation has a tremendous influence upon the economy, capital structures and society as whole, all of which saw fractures, rising risks and warning signs pre-COVID. Paramount among these risks were warning signs from the reverse-repo market and growing liquidity contraction in the broader markets, themes carefully discussed herein.

With the foregoing risks at play, the best tactics for the current economic pitch involve longer-term preparation, a respect for historical lessons and a fundamental recognition that further and inevitable monetary and fiscal expansion can only mean further currency debasement and hence the longer-term re-pricing (i.e., rise) in gold valuation.

Despite near-term yawning from retail investors and commercial banks regarding gold, the signals coming from HNW investors moving gold from commercial banks to private vaults, coupled with increasing gold demand from pension funds and central banks, point to gold gaining greater respect as currencies, financial systems and governments experience increasingly less repsect.

Like football finals, in that location can only be one winner, and when it comes to physical gold vs. increasingly debased currencies, the end-game is obvious.