Today a 42-year market veteran warned King World News that the world now faces military wars, economic wars and currency wars. He also believes this could easily lead to $10,000 gold and included an important chart. Below is what Egon von Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, had to say.
Greyerz: “Eric, sadly the potential of a major war is now increasing dramatically. I would almost say that it’s certain we will either have a major military conflict or a full-blown economic war, which would be just as devastating. And I wouldn’t be surprised if we have both.
“The escalation of hostilities in Ukraine can easily lead to a world war as Paul Craig Roberts has been talking about over the last few weeks. Isn’t it amazing that six months ago nobody talked about Ukraine as a potential catalyst for major conflict?
War and social unrest cycles point to the next few years being full of conflict that will involve human misery in most parts of the world. Economically the world is in a mess that can only get a lot worse. We’ve had currency wars for a long time already, but these will intensify.
We are seeing major currencies such as the yen, renminbi, and the ruble weakening. The U.S. dollar will be the next currency to fall but it will fall fast, and that move is imminent. The dollar should soon break solidly below the 80 level on the Dollar Index.
We start by looking at gold from October 2008 to August 2011, when gold went from $680 to $1,920. That was a stunning 180 percent move higher in just under three years. This was on top of major percentage gains in gold since the beginning of the decade.
Gold could easily rise to $10,000 in that environment, but we could see a lot more zeros after the gold price if the hyperinflation gets out of control. The bottom line is I think the waiting time is over and the next move higher is imminent and that move will continue for quite a few years before we see any significant top.”
Source King World News