People will come to understand that paper is worthless in the long run…
Tom welcomes back Egon von Greyerz, Founder and Managing Partner of Matterhorn Asset Management AG based in Switzerland.
Paper gold is traded by the banks at massive multiples to annual production every day. This vast amount of trading and gold swaps is 99% paper and is done to keep the gold price down. No sane trader would sell millions of gold ounces in a short period, but this happens regularly.
He explains the forces that are arrayed against those like WallStreetBets who want to fight the system. Egon argues that the system has unlimited resources with which to oppose such activity. He is skeptical that a raid on silver will accomplish anything, but people will come to understand that paper is worthless in the long run.