With the gold price tumbling, along with silver, today King World News interviewed the man who told clients in 2002, when gold was $300, to put up to 50% of their assets into physical gold, held outside of the banking system. Egon von Greyerz is founder and managing partner at Matterhorn Asset Management out of Switzerland. When asked about the plunge in gold, von Greyerz said, “Well, Eric, I’m not really surprised because last time I talked to you I did say gold could go down to $1,550 support and maybe even $1,420. In my view that would be quite normal in a very thin market and I said that would probably happen by the year end.”
“But this is all a thin paper market, we have not seen one single physical seller of gold or silver at these prices. So it’s just manipulation and panic in a paper market at the year end. Of course, it’s easy for anyone who wants to intervene to push the price down even further in a thin market. So I think that’s what’s happening and I wouldn’t worry the slightest bit.
Gold is up for the year in all currencies and 2012 will be another fantastic year. I could see the first three to five months (of 2012) being dramatic. You know the financing requirements worldwide are just mind-boggling. We’re talking about trillions here if you combine sovereign, corporate and bank requirements. The requirements are so high they just have to start printing money and they will.
The combination of strong buyers (physical) at these lower levels and the fact that we will see massive money printing, starting next year, will lift gold and silver very quickly in my view....
When asked how close we are to that massive money printing, von Greyerz stated, “I think we are extremely close because the banking system will not survive without it and governments know that. They have to do it (print).
There are already covert actions happening. The ECB is already printing money covertly and so is the Fed. But it will soon become official in my view and the amounts will be much greater than (anything) we’ve seen so far.”
When asked where he sees gold heading in 2012, von Greyerz responded, “I wouldn’t be surprised to see several thousand dollars (for gold), let’s say between $3,000 and $5,000 next year. I see that as the next move and fundamentally everything supports that.”
When asked about societal breakdown as gold eventually rockets higher, von Greyers remarked, “Well, Eric, that concerns me the most. Let me just take you through a couple of small examples because I’ve just spent Christmas in the UK.
Burglaries in the UK have doubled in 2011, doubled from the previous year. Theft of cattle and sheep has increased 2.7 times between 2010 and 2011. These are just are just small indications before anything has started to happen. People are poor, people are hungry.
This is just an early indication of what will happen in the next few years. People will have no money, people will be hungry, and therefore they will fight to get money, they will fight to get food. Sadly, we will have, in most countries, in European as well as the US, we will have serious social unrest. How far that will go is impossible to tell, but I am concerned.”
This is a powerful interview with one of the few men who saw the collapse ahead of time.
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/29_Von_Greyerz_-_Gold_Will_Trade_$3,000_-_$5,000_in_2012.html
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