27
Jun

Interview with Brian Bain from Investor In The Family (What will gold do next?)

Doug was interviewd by Brian Bain: in the interview they discussed the following

  • $50,000 Seems outrageous but starts appearing saner in the context of John Exter’s inverse pyramid.
  •  Many things can trigger the unraveling, they all usually come back to Fed.
  •  Doug is confident Fed will not raise rates again this year.
  •  There will be a time when treasuries begin to crack, then gold and silver will begin to take off.
  •  When will $50,000 gold come?

Interview notes:

  • $50,000 seems outrageous but starts appearing saner in the context of John Exter’s inverse pyramid.
  • John Exter has been called “the only honest central banker”
    • He was a central banker in the 1970s and known for his critique of central bankers
    • He claimed Fed was out of control at when it’s debt load was around $80B
  • “Gold bugs” still see cracks in the future of the federal reserve system, John Exter saw these cracks back in the 1970s
  • Congress has no clue as to saving money or budgeting
  • Central Bankers accommodate Congress with artificially low rates
  • John Exter’s Inverse Pyramid
    • Upside down pyramid with gold at the bottom

Exter

  • 2008-09 we had a mini-crash in the pyramid, but gold and silver also got hit
  • Once this unraveling begins, even gold can get hit
  • Many things can trigger the unraveling, they all usually come back to Fed
  • The unraveling begins when bids disappear on risk assets, investors trying to liquidate assets are unable to
    • In 1987 there were some assets that had no bids
    • Fear sets in and causes people to panic (ex: 1987)
    • Fed will do all they can to stem
  • Doug is confident Fed will not raise rates again this year
    • Fed will likely begin speaking of QE again because the strong dollar is really hurting things
  • Gold and silver should bottom where they are short-term
  • Gold and silver will collapse with everything else
    • During the predicted unraveling cash and treasuries will do best
    • TLT and TMF will shoot up
    • The dollar will go over 100 and even 120
  • Doug is confident in gold and silver (SLV) now more than ever
    • Even so, he sees one more last leg down in gold and silver
  • Gold should run up to 1400-1500 over summer 2018
  • There will be a time when treasuries begin to crack, then gold and silver will begin to take off
  • When to buy gold? When you begin to see treasuries crack
  • Can’t have a dollar crash without other currencies crashing
  • Doug recommends going half in gold now and half in during the crash coming in September/October 2018
  • When will $50,000 gold come?
    • If Fed raises rates down the road, when is the end game? When we hit 6% in interest rates
    • Fed still has a lot of tools, can still lower rates and even go negative. The US cannot pay 6% interest on its debt
  • The coming deflationary credit contraction could extend longer than people think
  • He sees us easily reaching $5,000 gold
  • For summer 2018, Doug sees stocks and gold/silver going higher
  • For fall 2018, Doug will be looking to see if the Fed starts retreating and potentially mentioning QE again. This could be the beginning of a 2007-09 type crash.
  • Doug looks to be long metals and miners by end of year

 

You can find the interview via the following links:

Investor in the family

 

apple podcastStitcher radio

 

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About Doug Eberhardt

Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534

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