Jim Willie (Part 2): the rush for physical gold is on

Episode 65: Statistical analyst and newsletter writer Jim Willie of GoldenJackass.com talks to GoldMoney’s Alasdair Macleod about the increasing transfer of wealth from Western countries to their Eastern counterparts, and the hugely bullish picture for silver at the moment.

The huge flow of gold from West to East is evidence of this wealth transfer. Willie also talks about plans by Germany, China and Russia to create an alternative payment system to replace the US dollar in multilateral trade. According to Willie it is going to be gold-based and will be peer-to-peer – eliminating many sources of profit that currently exist for banks. He also points to increasing talk from certain influential people about the possibility of a renewed gold standard.

Willie sees big outflows of gold from London to China, with 5,000 tonnes leaving London from March to mid-June according to his source. As banks are desperately looking for physical gold official reserves might be seen as a tempting source. He senses a scandal were such gold has been replaced with gold certificates to satisfy physical demand.* In his view, Fort Knox likely does not hold the gold that it is claimed exists there.

On the subject of silver, Willie expects the white metal to outperform gold threefold once the prices of both metals start rising. Stockpiles have been used up over recent decades, but the monetary and industrial demand for silver is continuously increasing, painting a very bullish picture for the metal.

This podcast was recorded on 3 November 2012.

*NB: When Jim refers to the coming “allocated gold scandal”, he is referring to allocated gold stored at banks. Please note that metal stored in GoldMoney vaults is not stored with banks, and is not loaned out. See the following Frequently Asked Question for information on how you can be sure that metal stored with GoldMoney is safe.

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Alasdair started his career as a stockbroker in 1970 on the London Stock Exchange. In those days, trainees learned everything: from making the tea, to corporate finance, to evaluating and dealing in equities and bonds. They learned rapidly through experience about things as diverse as mining shares and general economics. It was excellent training, and within nine years Alasdair had risen to become senior partner of his firm. Subsequently, Alasdair held positions at director level in investment management, and worked as a mutual fund manager. He also worked at a bank in Guernsey as an executive director. For most of his 40 years in the finance industry, Alasdair has been de-mystifying macro-economic events for his investing clients. The accumulation of this experience has convinced him that unsound monetary policies are the most destructive weapon governments use against the common man. Accordingly, his mission is to educate and inform the public in layman’s terms what governments do with money and how to protect themselves from the consequences.

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