DR. THORSTEN POLLEIT (WWW.BOOMBUSTREPORT.COM) INTERVIEWS CLAUDIO GRASS
Thorsten Polleit (TP): On November 5, 2024, Donald J. Trump was elected the new U.S. president with a landslide victory. His declared goal is to take on the “Deep State” and its bureaucracy. His advisor, Elon Musk, is urging the reduction of national debt, and even the inflationary Federal Reserve (Fed) has become a target, described as an evil that must be healed. Is all this just early enthusiasm, or are the U.S. truly at a turning point?
Claudio Grass (CG): Those who understand that politics is a competition of crooks, and that politics is always left-wing, will watch the current political “Muppet Show” with quite some reservation. I think Trump is merely reflecting a kind of nationally-oriented brand of socialism — as opposed to international socialism, or globalism. The goal, as always, is to divide the population. Democracy is the “illusion of choice” or, in the words of Vladimir Lenin, “The state is a machine for maintaining the rule of one class over another.” In terms of the U.S. dollar as the global reserve currency … well, its market position is clearly on the decline. Other fiat currencies, such as the euro or even the Swiss franc, are no better and might even be more vulnerable than the dollar. Elon Musk supports the digital world, and X (formerly Twitter) is supposed to become the West’s new “WeChat,” a centralized platform for everything. Anyone who thinks Musk is a saviour should take a closer look at his technocratic agenda. So yes, the West is at a turning point. Not just the U.S., but especially Europe. If we look to history as a guide, it is clear that every 80 to 100 years there has been a kind of “reset.” Why should this time be any different? The means of dividing society are the same as in the past. There is nothing new under the sun.
TP: The price of gold has risen from $1,500 to nearly $2,700 per ounce during the presidency of the Democrats — likely as a result of high inflation and soaring national debt. If Trump reverses the policies rolled out by the Biden administration, could it mean the end of the good times for gold (and silver)?
CG: What is the biggest driver for gold? Loss of trust! That is, when people lose faith in institutions, when they are threatened by war and inflation, when thoughts of the future fill them with anxiety. We are in the final phase of the current monetary system under the leadership of the U.S. dollar, and thus at the beginning of a commodity bull market, which I believe started in 2022. The problems created by our central banks and governments are enormous, and they are being papered over with money printing and negative interest rates (in real terms). We are talking in trillions today. And I like the comparison that one trillion seconds amount to around 31,709 years. It’s all about the scarcity of goods and services.
Therefore, I see one last big phase of inflation in the form of a so-called “Crack-Up Boom” centered in the U.S. The world will continue to get divided, and politicians and bureaucrats will push an agenda that is even more hostile to the interests of their own population. Therefore, I believe precious metals will once again do what they have done for thousands of years in a “reset.” Whoever owns gold and silver will not only maintain their purchasing power, but their purchasing power will increase significantly. As I said, scarcity of goods and services is what counts for wealth — not the creation of IOUs out of nothing. Debt is just advanced consumption that will not take place in the future. Personally, I believe that holding physical gold and silver will allow individuals to make it through the difficult and hard-to-ignore transitional period, and if necessary, to start a new life — whether at home or abroad. Again: Every 80 years we have a kind of reset. Why should this time be any different? The signs and strategies today align with those of earlier revolutionary periods — such as the Jacobin Revolution in France. We are once again confronted with a cultural revolution.
TP: Many gold and silver investors create positions through gold and silver ETFs, and some also purchase gold and silver certificates. For many, this is an easy and cost-effective way to participate in the precious metals market. As a proponent of physical gold and silver, do you agree? What do you see as the pros and cons of “paper gold” and “paper silver”?
CG: A person I greatly admire and who has substantial wealth once told me, when he purchased physical gold in large quantities and stored it outside the banking system: “I’m an entrepreneur and investor, I want to create real value for my fellow human beings with my capital. Therefore, I don’t like the idea of buying gold and burying it in the ground, unable to use it.” He said the most important thing about this decision for him was that he could secure part of his wealth outside the banking system. He also recognized that the biggest risks in today’s system are hidden, and property rights are only temporary — as we’ve seen in places like Cyprus and Greece in the past. I think this point speaks for itself. Many people are aware that gold is a form of money, and it makes sense to hold it — rather than have cash in a bank, often subject to negative real interest rates, or bonds which come with massive default risks, or an entirely inflated stock market full of NVIDIAs, Teslas, and whatever the “Magnificent 7” are called. Today’s system is absurd, and physical gold and silver, in the form of coins and bars, are the antidote. ETFs, certificates, etc., all carry counterparty risk or represent a promise to pay. For many ETFs, you’ll find something called a “Cash Settlement Clause,” which states that in times of crisis, the ETF issuer may pay out fiat currency instead of physical gold. So, if you’re going for gold and silver, it should be physical — and held outside from the banking system.
TP: One argument that proponents of crypto (especially Bitcoin) often bring up against physical gold and silver is that the precious metals are difficult to transport, that you’ll run into problems at the border. Is this a legitimate concern?
CG: A digital nothing obviously has advantages over a real, tangible asset. The key issue is belief … (laughs). Bitcoin has not yet proven itself as money, and it remains a speculation to this day. Personally, I prefer physical gold and silver as a store of wealth, rather than a speculation that could burst and collapse just like the current tech boom. Nevertheless, I also believe that digitization is part of the future. Every coin has two sides, and the internet is no exception. Dear Thorsten, you know as well as I do that soon enough, there will be companies offering tokens backed 100% by physical gold, stored outside the banking system. These tokens can be exchanged at any gold dealer in the world for physical coins and bars. That would solve the “transportability” issue. Nevertheless, I believe that every person should own physical coins and bars in the future, so that they can become their own central bank. In this way, you’re not dependent on the system; you remain in control of yourself and your private property. It allows for freedom of action for yourself and your loved ones. Gold is a good idea — it is, after all, sound money for a sound society.
TP: A final, albeit somewhat unprofessional, question: Where do you see the gold and silver price in twelve months?
CG: Of course, it’s difficult, even impossible, to make concrete predictions about the future. That said, even without knowing the future, I have an opinion on it. Paper currencies will continue to depreciate against gold and silver. Inflation will accompany us, and geopolitical risks are enormous, further driven by political agendas. Therefore, I think a price of $3,500 to $4,000 per ounce of gold by the end of 2025 is not unrealistic — before it goes much higher after that. The big bull market in gold and silver has only just begun.
TP: Dear Mr. Grass, dear Claudio, thank you very much for sharing your thoughts with us — and for advocating gold and silver, precious metals that are truly sound monies!
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Claudio Grass, Hünenberg See, Switzerland. www.claudiograss.ch
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