Wednesday, June 01, 2016

Grant Williams:
Own Gold, Not ETFs
"I don't buy gold, I own it. I don't buy gold at $1,100 because I think it's going to go to $1,200. I buy it for what it does, not what the price is, the price is the last consideration for me. I think the way the picture has been developing over the last eight years, it's like when you take a polaroid, you take a picture and you sit there and you watch this thing and it slowly comes into focus, and that's what it's been like for me watching gold, we're watching this picture slowly develop .. We're getting to the point where people are going to be able to see the picture, and at that point gold is the answer. It's not just an asset anymore, it's the answer to a lot of people's questions. When that happens, I think the most important stage of this completes itself and that is the resolution between the paper price and the physical asset. I think when we get to that point where people want to own gold, ETFs won't suffice anymore. A promise to deliver three months hence is not going to be sufficient anymore, people are going to want to own the asset. At that point you realize that there are multiple hundreds of claims per ounce, and those claims won't be worth anything anymore it's going to be the asset, and that's the end game."
On financial repression: 
"The outcome of taking rates to zero, the idea is let's make it unattractive to hold cash .. Any time someone is telling you, 'you really shouldn't do that, we're going to discourage you from doing that', often times that's where people want to go and so I think holding cash, the optionality that you have inherent in owning cash now has certainly not been higher since going in to the financial crisis." .. 
On wealth confiscation coming: 
"Having the ability through digital cash, for a government to reach into your bank account and take 10 percent 20 percent, whatever it may be, is what they need. They can see this coming, at some point they're going to have to take money from the people who have it to fill the hole of the people who have spent it. This was a perfectly logical next step in that process."
- Grant Williams
link here to the reference

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