Paul Tustain: Gold Is Sending A Signal That The Monetary System Is In Grave Danger

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Submitted by Chris Martenson

Paul Tustain: Gold Is Sending A Signal That The Monetary System Is In Grave Danger

"When a country's public debt exceeds 90% of GDP, that is the magic number. You get to 90%, there is no way back, and that is the number that the U.S. is going through pretty much as we speak. It is also the number which the UK has gone through; all of the PIGS are going through it, as well. They are all going past the 90% debt to GDP ratio. Obviously, Japan is miles past it already. It's up to 200%+. There does not appear, in the historical analysis, to be any great likelihood of getting back from that level of debt safely. There is this strong evidence that above 90% debt to GDP, you will experience either a cataclysmic default or some form of very serious inflation."

So observes Paul Tustain, gold market analyst and founder of BullionVault. In his view, gold serves as a beacon who's price is currently signalling the monetary system is in grave danger. He and Chris Martenson discuss the primary factors driving the price of gold and smart strategies for investors looking to build or maintain their holdings of the metal.

Click here to listen to Chris' interview with Paul Tustain (runtime 56m:55s):

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In this podcast, Paul covers:

  • The differences between unallocated and allocated buillion and the market problem that led Paul to found BullionVault
  • How central banks have recently shifted to become net buyers of gold after a long period of dis-hording bullion, and how this - combined with surging private investment - has sent demand for the metal skyrocketing 
  • Why we're currently experiencing inflation & deflation at the same time: our monetary policy is pushing more and more money into short-term investments, driving up the price of the things we use today (food, fuel, etc) and and lowering prices of the things we finance over longer periods (like houses)
  • Paul's approach to valuing gold and why he sees $3,844/ounce as a defensible (and conservative) estimate of it's appropriate value
  • Paul's perspective on silver, gold miners and ETFs 
  • The purpose and advantages of the allocated custodial bullion purchasing & storage model that BullionVault offers

Click here to read the transcript