“Insurance is something you need but hope you’ll never use.”
— Every insurance salesman on the planet
Modern monetary theory “is just a big con,” says Egon von Greyerz of Matterhorn Asset Management in this week’s Wiggin Session — echoing a sentiment that has nettled us for quite some time.
Politicians simply can’t print as much currency as they want without consequences. One of the most likely outcomes is inflation… which we’re starting to see crop up in food and raw material prices.
An easy way to protect yourself is to sit on a cache of precious metals. And as Egon tells us, when you factor in the dollar’s lost purchasing power, gold and silver are at some of their lowest prices in history.
“This is the cheapest insurance you could ever have today,” Egon says.
Here’s our usual look at how the conversation progressed this week.
With the markets closed, we took the day off ourselves. But Tuesday’s email shares some solemn thoughts on the holiday.
Over the three-day weekend, we saw plenty of complaints that Americans have forgotten what Memorial Day is supposed to be about. But even the admonitions to honor our nation’s fallen heroes largely miss the point. With Americans more divided than ever, we really should be taking more time to remember the worst that can happen when we can’t get along. Of course, that’s not the only thing Americans have forgotten. Today we present an excerpt from Egon von Greyerz’s blog. It describes yet another unappreciated truth — that what goes up, must come down.
The Swiss don’t let just anyone wander through one of their secure gold vaults… but my son and I were lucky enough to get a personal tour. The vault was located right at the airport — and for good reason. Since the precious metals technically don’t enter the country, they aren’t taxed. But as I learned during this week’s Session with Egon von Greyerz, that doesn’t mean the precious metals aren’t untraceable. Egon sounds downright elegiac as he recalls how it used to be…
All the gold that has ever been mined is still around somewhere — even if it’s been submerged in saltwater for two centuries. That permanence is what makes precious metals such a great store of wealth. As Egon von Greyerz of Matterhorn Asset Management is quick to point out, the same can’t be said of Bitcoin and its ilk. Besides, he has reason to believe those cryptocurrencies won’t be around much longer. Countries aren’t “going to let private digital currencies replace the existing currencies,” he tells us.
Apparently there’s a “puppy shortage” all over the world. As Egon von Greyerz of Matterhorn Asset Management tells us, “A pup has doubled in price in some countries.” Demand is so high that people are calling dibs on furry companions that haven’t even been conceived yet — and are willing to pay historic prices for the privilege. Of course, pets are just one area that’s experiencing shortages and inflated prices. Things like semiconductors, steel, lumber — just to name a few — are all selling for much higher prices these days.
Catch our full interview with Egon von Greyerz, right here.
One of the most surprising things Egon told me this week was that he isn’t actually a gold bug. He’s “just trying to help a few people around the world to preserve their wealth.”
You can hear everything we discussed by clicking the picture above.
Founder, The Financial Reserve
P.S. Next week is going to be a bit of a mind-bender — but worth the effort. We’ll start off with some thoughts from Eva Brann. No, not Hitler’s mistress. You’ll get a full intro on Monday.