David Rosenberg on Deflation
From an NFTRH subscriber: “Gary, You might want to watch David Rosenberg’s presentation. You guys have a lot in common wrt your market outlook and deflation expectations.”
Thanks, Michael. I am enjoying listening to him right now. I love non-promotional voices just telling it as they see it.
thanks gary
Watched this yesterday and yes, it was in alignment with the Men Who Stare at Charts.
David also said this once, in a RealVision interview that I’ve always kept in the forefront:
Critics argue that gold provides no returns because they’re thinking of gold as an investment. Gold is NOT an investment, so it doesn’t provide any return.
The reason gold doesn’t provide any return is because it doesn’t have any risk, and as everyone knows, there’s no return without risk.
A hundred dollar bill doesn’t provide a return unless you deposit it in a bank, at which point it’s no longer a hundred dollar bill – It’s a liability of the bank, and you are the creditor with the risk of the bank not paying you back.
And the biggest risk that gold doesn’t have (which all financial assets have) is the risk of permanent impairment – in other words, the risk of permanent loss of value.
Gold price itself can go up and down, but gold itself is permanent. That is, its value cannot be lost or destroyed.
So well said. Thanks Michael.
Though they do not like to think of themselves that way, a majority of gold bugs are speculators in risk and have little concept of what the value proposition of gold is. This is proven by their most vehement touting done during inflation phases. /2022/08/11/gold-is-about-value-the-miners-are-a-speculation-upon-value/
Great video; thanks for posting. Tom Luongo of Gold Goats ‘n Guns confirms what David Rosenberg sees but takes the “why?” even deeper into the realm of geo-politics: The Fed is raising rates to destroy the Davos/EU-based offshore $dollar market.
I agree that gold stands out, as it is probably the least “consumed” metal in the world. Pretty much all the gold that is mined over the thousands of years is still above ground. But that might be about to change. As we head into the fourth industrial revolution (robotics, virtual reality, artificial intelligence), we will use gold for parts of nano devices from which it is hard to extract the gold i.e. recycle. This alone will put upward pressure on the gold price in the coming decade.
BTW: just saw that GBTC (Grayscale Bitcoin Trust) trades at 42% discount to bitcoin. Still wondering if I should short it if and when it trades back to the 18-20k region OR wait and buy it at Gary’s 12-13k target for a bounce only.