Gold: Working Generations Ahead as Headlines Miss the Big Picture

By Egon von Greyerz

Founder and Chairman

June 30, 2023

In this 20-minute MAMChat, Matterhorn Asset Management partners, Egon von Greyerz and Matthew Piepenburg, discuss the current disconnect between increasingly dark macro clouds (debt, currency, and rates) and a seemingly oblivious stock market and falsely complacent café society.

Egon opens with his own observations of this trend in the various and familiar cities of Europe, despite an ignored “summer of discontent” for the majority of middle-class families struggling to make ends meet. Piepenburg then addresses the empirical indicators of a looming and hard recession within the US as warned by everything from NY Fed data and PPI reports to tanking AirBnB numbers and luxury watch sales.

In this backdrop of ignored storm clouds, rising debt levels and misleading summer charms, von Greyerz and Piepenburg address the inevitable fate and direction of the USD and its ramifications for gold pricing. Toward this end, a number of factors, both historical and current, easily explain the foreseeable fall of the USD and steady rise of gold.

Finally, von Greyerz addresses the issue of a potential hit in the gold price during times of stock sell-offs in recessionary market declines. Placed in the context of history as well as current gold support, we learn that however the daily headlines turn, the conversation regarding gold as a wealth preservation asset is not only familiar, but confirms gold as constant throughout deteriorating cycles. In sum, the headlines may seem unique to our times, but the looming end-game (and currency destruction) is nothing new and of little surprise to the well-informed who think generations rather than months and days ahead.