Jim Rickards: Global Financial System Needs Golden Anchor?

In this video interview Jason Burack of Wall St for Main St interviewed best selling author and Chief Global Strategist at the West Shore Funds James Rickards. Mr. Rickards just released its new book “The New Case for Gold” which is available for purchase on Amazon.

Readers are recommended to listen to the interview, though it lasts half an hour.

Some the highlights from the interview:

  • Why do you think so many people on Wall Street don’t understand gold? Jim says there’s been over 40 years of “anti-gold” conditioning (basically a form of brainwashing) in schools in the US while people in other countries understand gold’s role in a diversified investment portfolio far better.
  • Warren Buffett holds an erroneous view on gold as he believes that gold caused the Great Depression of 1929.
  • Gold is money and doesn’t need a yield.
  • Why are Russia and China accumulating so much physical gold? According to Mr. Rickards, China is hedging its paper US Treasury holdings (over $3 trillion currently) in case the US is successfully able to create massive amounts of inflation and devalue the US Dollar. Russia is accumulating gold because the US is targeting them more with financial warfare.
  • Will the Shanghai Gold Exchange allow for real price discovery in the gold market? According to Mr. Rickards, gold has been manipulated for over 100 years since WWI and the Chinese would love to accumulate more gold at a lower price. However, gold miners cannot withstand gold at lower prices.

This, and much more, is discussed in this interview.

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