Demonetization and the Role of Gold

Featuring David Fergusson

Gold investor and brokerage owner David Fergusson, dissects the implications for the global market from India’s demonetization and the desire of governments to find other ways to solve their financing problems. With equities overvalued and the bond market turned, David considers the appropriate level for gold holdings, while free markets battle state intervention.

Filmed on December 28, 2016 in Singapore

Published on
3 February, 2017
Topic
Global Outlook, Gold, Fiscal Policy
Duration
49 minutes
Asset class
Cash, Bonds/Rates/Credit, Commodities
Rating
68

Comments

  • DF

    David F.

    27 2 2017 10:00

    0       0

    Usman B . . . Get in touch if you are ever in Singapore

  • UB

    USMAN B.

    18 2 2017 14:48

    0       0

    I would love to have a drink with this guy!

  • AE

    Alex E.

    17 2 2017 04:41

    0       0

    Stefan M. Governments can"t wait for block chain tech to be perfected! Too hackable right now. But when it is perfected, I guarantee you that they will be able to digitally clean out your bank account and there is zero that you can do about it.

  • AE

    Alex E.

    17 2 2017 04:38

    0       0

    Thomas W., Yes, Governments DO think we're stupid which is why they keep trying to cook up all sorts of new financial regulations like having to report income sources for more than $10,000 dollars. Elizabeth B., keep 10% of your net worth in physical gold and hide in a safe location that only you know about. In the not so distant future, you are going to need it to buy your necessities!

  • JD

    Jonathan D.

    15 2 2017 18:21

    0       0

    Spoke a lot. Did he actually say anything?

  • TF

    Terry F.

    14 2 2017 21:57

    0       0

    @Daniel W, re PM storage: I agree with Will W. about Silver Bullion in Singapore. There is also Goldmoney and Bullionvault and many others. Just Google "gold storage". Be sure to do your due diligence. It is important not only where the PM is stored, but also under what jurisdiction the storage company is headquartered. Governments can strong arm any company in their jurisdiction. Be sure that the storage company you use can also return your PM to you directly. Some can only liquidate your account and wire you funds which simply continues to keep you captive to the banking system. You want your PM investment to be completely independent of the banking system.

  • SM

    Stefan M.

    12 2 2017 11:53

    0       0

    Ceteris paribus, I agree it is concerning if goverments digitize their money. However, I think it no longer matters txs to the blockchain evolution (David frame of thinking does not include blockchain knowledge) that puts the power back to the people.

  • NN

    Ned N.

    10 2 2017 13:31

    1       0

    Bravo David, I ideally wouldn't want to be described as a 'conspiracy theorist' either....but one has to accept that understanding how things truly work involves being called a 'nutter' by the existing mainframe. Now is not the time to pull ones punches in analysing where we have come from or where we have got to.

  • EB

    ELIZABETH B.

    9 2 2017 22:41

    5       1

    This interview reflects the conversations we have at home. What good are cash notes when the government can eliminate them overnight? What good is gold when that can be confiscated along with everything else. Why bother to listen anymore to any financial expert or read what they say? They realize like do, we really have no way to protect ourselves.

  • ww

    will w.

    8 2 2017 17:41

    0       0

    @Daniel W, re PMs storage: how about Silver Bullion in Singapore? (silverbullion.com.sg)

  • SC

    Sajad C.

    6 2 2017 22:08

    1       1

    Refreshingly honest. Easy to follow.

  • TW

    Thomas W.

    6 2 2017 15:18

    3       1

    Interesting that Mr. Ferguson now sees manipulation as obvious. One has to wonder how anyone DOESN'T at this point. We have market manipulation in all forms ... official, criminal, the HFT variety ... coming out the yin yang. And yet, people such as Bill Fleckenstein, Doug Casey and Pierre Lassonde who continue to pooh pooh the idea that wholesale manipulation ... oh, let's call it was it is ... a SUPPRESSION CAMPAIGN directed by the likes of the BIS, the ESF, and the central banks ... exists. "Governments have no interest in gold" and all that.

    What? Do they think we're stupid? David Ferguson is telling it like it is!

    This interview exemplifies what RVTV is all about. Superb.

  • JM

    James M.

    6 2 2017 14:52

    2       0

    I didn't find it very helpful as its a well known dialogue and there are no solutions given, but it was an excellent, simple and brutal commentary on our times and in that respect quite different from other pieces. Thumbs up from me.

  • DR

    Daniel R.

    6 2 2017 03:05

    3       0

    @RAGHAV M - Lower bonds = higher interest rates. Two mechanisms affect property. Higher mortgage rates affect ability to carry a large property loan. Also for a given level of rents, property prices have to fall to match a higher rate of return.

  • RM

    Raghav M.

    5 2 2017 20:28

    0       0

    Can someone explain how property prices follow the bond market? Thanks

  • ss

    shaun s.

    5 2 2017 17:18

    5       0

    David's three RV interviews among my favorites. Outstanding piece!

  • CH

    Calvin H.

    5 2 2017 16:32

    10       0

    Finally! A 'real' and honest conversation from a subject matter expert! After the 26min mark is the best conversation I have EVER heard on RV and for that matter ANYWHERE. Thank you. I am now a lifetime member. Great job Grant on letting him struggle with the hard questions.

    Question - when RV talks about inflation, why don't you mention that velocity of money needs to turn and what catalysts are required to make this happen? This is central to gold's rise, no?

  • DW

    Daniel W.

    5 2 2017 15:42

    0       0

    Hi, being based in Germany I would like to store some of my physical Gold abroad, outside the EU and outside the US. Can anybody recommend an offshore storage? I was thinking about Malca Amit, any experiences with them? Thanks!

  • DH

    Dale H.

    4 2 2017 22:32

    3       0

    Enjoyed this - thanks. This is where I am as well - waiting and invested in gold. A sad commentary on the world of finance today. Difficult times for investors.

  • db

    don b.

    4 2 2017 12:07

    13       2

    It is interesting to see some of the top people in the world coming around to the vision of outliers like Bix Weir. And that is that the whole thing goes down and if you have have a 3rd party bank in between you and your investments you will lose. Banks have now taken over almost 100% of finance which is dangerous to the extreme. I think if people knew the real risk of rehypothecation, the chaos of the DTC, and the degree that markets have been rigged by Bob Rubin and Larry Summers "Gibson's Paradox" they would flee. I have never wanted to be wrong about something more.

  • ma

    mary a.

    4 2 2017 04:24

    32       0

    Never listened to an RV interview in which the person expressed my personal conundrum about the state of financial affairs and the decisions that we face better than this one. There are NO simple solutions to making money or even to keeping what we have. Thanks, RV.

  • WS

    Wm S.

    4 2 2017 04:17

    3       0

    There are drawbacks that a *REPLY-to-comment* feature might pose to this site. As examples: distract from core product, conversational hijacks/pollution, ergo enhanced moderation requirement. (I'm available, btw.) But, my goodness, I'm loving all these comments and wish I could engage (reply) with this site and move them along even farther.

  • rm

    russell m.

    3 2 2017 23:21

    0       0

    i recommend returning to the intro theme music from the early gold series interviews.

  • MS

    Matt S.

    3 2 2017 22:51

    2       0

    @Chivaar - "especially for sector agnostic investors"

    What do you mean by sector agnostic? Thanks.

  • WE

    William E.

    3 2 2017 21:03

    18       0

    Greed and Fear are different sides of the same coin - Unfortunately, central bankers are holding the coin on it's edge and many of us are only 50/50 in the game. Resolution will only come when an exogenous event (good or bad) arrives. Given that I can't think of a "good one" powerful enough to qualify, my bet is we are eventually in for a very rough ride. As always, the question is when?

  • FG

    FundamentalAnalysis G.

    3 2 2017 20:42

    4       1

    There are definitely investment opportunities available especially for sector agnostic investors, and for which you aren't required to look at emerging/frontier markets. However you just need to be more active as well as more careful in your approach.

  • AD

    Anthony D.

    3 2 2017 19:25

    28       1

    There is nothing more refreshing than humble, smart people.

  • AG

    Alex G.

    3 2 2017 18:14

    4       0

    I would say there's been 4-5 RV guests that have quoted , or attempted the Rothschild line

  • KC

    Klendathu C.

    3 2 2017 16:33

    53       2

    The Kyle Bass, John Burbank, Louis Gave kind of videos are priceless, but it is these kind videos where Real Vision shines as a lone voice of reason in these times of monetary insanity and government overreach.

  • IJ

    Ian J.

    3 2 2017 16:33

    22       1

    Love the honesty - classic Real Vision.