Gold's Protection of Purchasing Power & The Viability of Fiat Currency (w/ Simon Mikhailovich)

TL;DR

The rise of populism and the uncertain political and economic climate have led to increased interest in safe assets like gold, which has seen a recent rise in price. However, the efficient market theory suggests that the current environment is low-risk, which creates confusion in the market.

Transcript

Bill Kennedy: Simon Mikhailovich, co-founder of the Tocqueville Bullion Reserve Fund, welcome back to Real Vision. Simon Mikhailovich: Thank you, Bill. It's great to see you. Great to be with you here in New York City. So I think the last time you were on was last November, just after the US elections, I believe it was, and a lot has transpired sin... Read More

Key Insights

• 😮 The rise of populism reflects a dissatisfaction with the current political and economic systems.
• 😘 The financial system's high levels of debt and low interest rates have not led to organic economic growth, contributing to the rise of populism.
• 🥺 The current uncertain political and economic climate has led to increased interest in safe assets like gold.
• 🙃 Owning physical gold in a fiduciary framework can protect against financial risks and preserve purchasing power.
• 😘 The efficient market theory suggests that the current low risk environment is confusing for investors.
• 😘 The financial system is at risk due to high levels of global debt and low interest rates, creating the potential for inflation or deflation.
• 🥺 Populist movements can lead to totalitarianism and the loss of individual freedoms.

Questions & Answers

Q: Why has there been a rise in safe assets like gold?

The uncertain political and economic climate has led investors to seek safe assets that can retain their value, such as gold.

Q: What is the impact of populist movements on the capital markets?

Populist movements reflect a dissatisfaction with the current political and economic systems, which can create uncertainty in the markets and impact economic growth.

Q: How has the financial system contributed to the rise of populism?

The financial system, with its high levels of debt and low interest rates, has not been able to create organic economic growth, leading to dissatisfaction among citizens.

Q: How can owning physical gold protect against financial risks?

Physical gold, owned in a fiduciary framework, can preserve purchasing power and protect against financial risks by avoiding exposure to the banking and financial systems.

Summary & Key Takeaways

• The uncertainty and increased clarity since the US elections have driven the rise in safe assets like gold.

• Populist movements around the world are a symptom of citizens' dissatisfaction with the current political and economic systems.

• The financial system is at risk due to high levels of global debt and low interest rates, which could lead to inflation or deflation.

• Owning physical gold in a fiduciary framework can protect against financial risks and preserve purchasing power.