Kris Sayce from Funds Morning Australia attended the Sydney Gold Symposium this week. He admits no prizes for producing the proper guess on the opinions on gold and silver. “The message was buy both. And buy them now.” Which he says, created him feel a bit uncomfortable.
Here are Kris’ highlights from the conference – and a word of warning:-
Monday’s keynote speaker was Egon von Greyerz. Here are a handful of choice quotes:
“There are three varieties of cash. There is funds which is worthless (Zimbabwe), there is cash that will grow to be worthless (US dollar), and there is true income (gold).”
“100,000 men and women earning average $ 40,000 have to operate for 350 years to create as much earnings as Ben Bernanke can print $ 1.four trillion in a fraction of a second.”
What’s the difference? The first is mostly productive work… The latter is a man pressing a button!
“Nixon should have been impeached for going off the gold regular, not Watergate… or shot even! It was the worst criminal act I’ve ever seen.”
The afternoon session saw our old pal, Dan Denning take the stage:
“The gold standard must be the friend of the working man…
“You can not have correct liberty without gold as genuine income.”
And on the sham of central banks obtaining an inflation target, Dan pointed out an inflation target of three% signifies the central bank is authorising the steady erosion of personal wealth… by three% each year.
But “beneath a gold normal [the men and women] cannot be robbed by the central bank in that way.”
The keynote speaker second day was a ripper too.
But as we had been chairing, we did not have the likelihood to take as several notes as we would have liked. Richard Karn’s speak on specialty metals was the very best of the crop.
His greatest slide compared nations’ funds provide growth and reported inflation prices. Turns out Australia’s funds provide is developing more quickly than the U.S. However officially our inflation is under control!
But obtaining back to our point from the begin of this letter, some parts of the Gold Symposium created us really feel a bit uneasy.
We know it was a gold conference. And we knew everyone would be bullish on the yellow metal. But still, we had hoped for some counter arguments. Or at the quite least for one of the speakers to say, “Of course, if I’m wrong, this will happen…”
The closest any of the speakers came to this was (we believe) John Embry of Sprott Asset Management. To paraphrase, he said: “Be careful what you wish for. If there is hyperinflation it will be terrible for everybody.”
It’s an argument we’ve created here many instances. We know the gold bugs won’t like us saying it. But the ideal outcome for gold investors is almost certainly for the world’s economies to expertise a lot more of the same… bailouts and central bank funds printing.
That will be bad news for those who do not own gold as they’ll stay unaware of the silent destruction of their wealth. But for gold and silver investors it could (or should) see valuable metals crank greater over time.”
The complete report is offered at http://www.moneymorning.com.au/20111116/the-operating-mans-and-womans-greatest-friend.html
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