Inflation is coming and it will have a major effect on the world economy and financial markets. This is one of the factors that will drive gold to levels which few can imagine today.
…Interest rates are critical to a world with $250 trillion debt plus derivatives of $1.5 quadrillion and global unfunded liabilities of 3/4 quadrillion. Minor increases in rates will have a catastrophic effect on global debt. Derivatives are also extremely interest rate sensitive. Also, derivatives represent an unfathomable amount that will blow up the global financial system when counterparty fails.
…We might see temporary dollar strength for a while after the strong fall this year. But the downtrend is very clear and the dollar will at some point within the next few months accelerate down very strongly. The Petrodollar is soon dead and so is the US dollar. The consequences will be disastrous for the US economy and will also lead to a rapid acceleration of US and global inflation.
…gold and silver resumed the long-term uptrend in January 2016. There are a number of factors that will fuel gold’s rise to levels that very few can imagine today.
PG View: One of the factors von Greyerz cites is that “The paper gold market will collapse leading to gold going “no offer” which means gold can’t be bought at any price.” Those investors seeking a true hedge should avoid ETFs, futures and options. Take delivery of the real thing.