2021-10-01
Matterhorn Asset Management are in the gold business - and that (a) means they know a lot about it and (b) it would be surprising if their interests did not colour their opinion of where the financial world is bound this autumn and henceforth.
That said, it's hard to fault their logic, and equally, it's hard to know if there are any truly different options that are being left out of the discussion. We need to check out the assumptions underlying the argument.
The primary assumption is that the system of fiat money (not backed by any asset) will continue.
Is there reason to suppose that it won't? Well, yes - the petrodollar system that underpins it is breaking down since Russia China and others started offering to trade oil in other currencies - so the US dollar is losing a primary support. What if (as some think) the whole system will undergo a reset, perhaps back to asset-backed currency (central banks have been buying gold)? If so, when?
The dynamics of world finance would be changed and we may still end up with too much currency chasing too little product (inflation) or vice versa (deflation) and there is the small matter of how a currency revaluation would be handled (unknown at present). So yet more to contemplate.
Or maybe the WEF will get their way and we will all end up swapping carbon crypto tokens for our needs ...? It's hard to imagine that a "great reset" would leave the financial system unchanged, especially when it seems to be in so much trouble.
A centrally-planned and executed global command economy run by technocrats wielding inscrutable AI algorithms (what could possibly go wrong?) to dole out (or withhold) social credits to (from) all and sundry through an enhanced Social Pass app probably seems like Utopia to some (communism on steroids to others).
Whatever happens, a period of chaos seems inevitable - the only choice is whether it might be predictable in some measure or utterly unexpected and unfamiliar in character.
Certainly I am not qualified to foretell the future (and I suspect nor is anyone else) so as usual it's every man / woman for him/herself.
Personally, I'm steering clear of anybody who thinks they know how this will turn out (although "badly" might not seem too far off the mark). Just don't omit to reassess the unstated assumptions when considering your options - and maybe keep an amount of cash to hand to tide you over any financial / internet outages which chaos may bring.
