Jim Rickards Talks To Peter Schiff: The Role Of Gold In Currency Wars

In this videocast, Jim Rickards and Peter Schiff talk about currency wars, the gold market and the next liquidity crisis. Below is the video, it’s tackles several topics in a short but very powerful way.

The topics that both men cover in their discussion with the timestamp referring to the video:

  • 0:28 – A review of the most recent developments in the international currency war and why the US is unfortunately going to “win.”
  • 1:43 – Countries with the biggest dollar reserves are building up gold reserves in preparation for a currency crisis.
  • 2:15 – China’s officially reported gold holdings are probably false. Rickards leads Peter through his reasoning that China’s gold holdings are likely 4-5 times greater than official reports!
  • 4:00 – If China told the truth about how much gold they really have, the dollar would collapse and gold would skyrocket. They don’t want this to happen before they’ve bought as much gold as they feel they need.
  • 5:11 – Why has Germany seemingly changed its mind about repatriating its gold?
  • 6:49 – Basically, the Fed has “leased” the same gold over and over again.
  • 7:12 – Rickards explains why gold dropped in 2013 and why it was a one-time event.
  • 8:10 – At some point, US Treasuries can no longer be the safe haven for investors.
  • 8:30 – Rickards addresses the problems surrounding the London Gold Fix and how the gold market is moving to the East. Shanghai is rewriting the rules of the gold market.
  • 10:01 – Rickards explains how the next liquidity crisis will play out, with the collapse of central banks, as well as sovereign nations.
  • 11:17 – When you have a currency crisis, it’s the paper wealth that evaporates. Rickards explains how Warren Buffet is preparing for exactly this endgame – by dumping paper money and buying hard assets.

 

 

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