Lars Schall, an independant financial journalist from Germany interviews financial analyst and investment manager Marshall Auerback on behalf of Matterhorn Asset management / GoldSwitzerland.
Auerback says that the environment of currency wars and competitive currency devaluations, will make the gold market a very interesting subject to follow in the years to come. According to him, only very few people understand the gold market – be it in economics or the financial press. He outlines how he became involved in the gold market at the end of the 1990’s during his work for Frank Veneroso, and that it was clear back then what a great investment gold would be in the following years. Auerback thinks that the recent price plunge came about because of a “collusion” between bullion banks and some big hedge funds. He does not believe that gold is in a bubble before it reaches the level of $3000. Moreover, he addresses the gold policy of countries such as Italy, China and Germany. With regards to the latter, he is certain that the Deutsche Bundesbank is preparing the terrain for the time after the euro.
Auerback does not believe that the recent take down in the paper gold market was a natural market event. He thinks that physical gold, silver and the good mining stock companies still represent excellent investment opportunities. Moreover, he states that interventions are taking place in all kinds of markets.
The podcast discussion is based on the following questions;
Does the profession of economics understand gold fairly well?
How about the financial press?
Is the gold market a free market?
Why are mining stock companies both in gold and silver having a hard time?
What’s your analysis of the recent hit that the prices of gold and silver took?
Was this a natural market event?
What things have to be in place before you talk about a bubble in gold?
Why would you say that gold is still cheap?
Where do you see silver heading?
Will the volatility both in gold and silver increase in the years to come?
How do you think about the management of the dollar by the US government / the US Federal Reserve?
Has the Bank of Italy all the gold that it claims to have?
What are your thoughts on China’s gold policy?
How do you think about the fact that the Bundesbank announced that it wants to repatriate some of its gold holdings at the NY Fed and all of its gold from the Banque de France?
Do you think that gold will become a prime form of money in international trade in years to come?