The best environment for gold!

Tom Bodrovics interviews Ronald Stöferle on the major themes of this year's In Gold We Trust Report and the resulting implications.

The big 5 pillars

We discuss five major pillars in our report, which represent the most important major changes and issues. The first of these pillars, is dealing with debt. As we so appropriately write, the already very reclusive Swabian housewife has finally come to an end and been laid to rest. Politicians and central bankers are now extremely creative when it comes to piling up new debt and old agreements on the subject are largely being skilfully ignored. Our second major pillar is the fusion between monetary and fiscal policy. This conflation is not only worrisome because of the possible exploitation and authoritarian possibilities that arise from it, but also the possibility of an absolute loss of confidence.

 

 

Yield curve control as the tool of choice

Debt levels are higher than they have ever been in peacetime. Another problem that has never existed before in peacetime is yield curve control. But now it is back and on everyone’s lips. After the Second World War, financial repression and inflation made it possible to reduce the level of debt. The only problem is that demographically we are in a completely different situation. There is a threat of stagnation rather than the big upswing. It is also negative for portfolios and a scenario that most investors active today have never experienced. So, myths persist such as that equities are a hedge against inflation. However, this is not the case. Instead, one should use gold and commodities for that.

 

The big bubble

This was a major theme of our last report. After the Corona crash, the question was whether the bubble had finally burst. The answer is no. But the developments we observed last year have only intensified. Prices are shooting up in an extremely wide range of areas. Art, real estate, vintage cars, playing cards and much more. The loss of confidence in paper money is clearly noticeable. People are fleeing into tangible assets.

 

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