A DELUSIONAL CENTURY
DELUSION
A false belief or opinion
laboured under the
delusion
that success was at hand
100 YEARS OF PAPER
MONEY COLLAPSE
US INFLATION 1665 - 2011
POPULATION EXPLOSION
1800 to date
TRICKY DICK
THE LAW OF DIMINISHING RETURNS
GLOBAL DEBT IS EXPLODING
WORLD DEBT & GDP
THE MOST PRODUCTIVE MAN IN
HISTORY - 2005
BENEFITS SUPERVISOR
SLEEPING by LUCIAN FREUD
EU’s MILK COW SLEEPING
EITHER WAY SHE IS …
Debt per Capita
US PROBLEMS GREATER
WHAT HAPPENS NEXT
• Austerity – a vote loser
• Deficits accelerate
• Unlimited MP- Money Printing
• US Dollar falls sharply & other currencies
• Hyperinflationary Depression
THE BEST SOLUTION
SUPER MARIO
YOU AIN’T SEEN NOTHING YET
HYPERINFLATION
DESTINY OF CURRENCIES
EMPEROR HAS NO CLOTHES
CONSEQUENCES • Interest rates & taxes surge
• Unemployment surges
• Asset prices fall – in real terms
• Exchange controls
• New political parties & leaders
• Pensions & social security collapse
• Social unrest - Crime
• Famine – population fall
• Geopolitical problems
WHO WILL BE SAVED
THE DESTRUCTION OF PAPER MONEY
Ounces of gold bought for $ 1,000
Investment Year Ounces Gold
Price
%
change
$1,000 1913 50 $ 20 -99%
$1,000 1971 28 $ 35 -98%
$1,000 1999 4 $ 250 -86%
$1,000 2002 3 $ 300 -83%
$1,000 2012 0.6
$1,750 -
THE DOW HAS LOST 82% IN REAL
MONEY - GOLD - SINCE 1999
PROPERTY vs GOLD
WEALTH PROTECTION
• Asset values will be destroyed – real terms
• Nobody unaffected
• Privileged few – assets to protect
• Avoid
– Counterparty risk
– Leverage
• Own
– Physical gold (silver) Outside financial system
– Farm land
THIS IS NOT WEALTH
PROTECTION
• Gold / Silver ETFs in banking system
• Unallocated or allocated Gold/Silver in bank
• COMEX Gold
• Futures Gold
• Bank safe deposit box
• Storing gold at home
Matterhorn Asset Management
• Wealth preservation
• GoldSwitzerland
– Specialises in physical Gold and Silver bullion
– Stored outside the banking system
– Gold/Silver bars owned directly by investor
– Personal access to metals
– Ultimate form of wealth preservation
GOLD STORAGE
PHYSICAL PRECIOUS METALS
• 100 x more paper than physical - PONZI
• Gold: 600 – 700 tons daily
• Silver: 5,000 tons daily
• No physical to back up
• Do Western Central Banks still have gold?
• Bank gold encumbered
• Don’t hold gold within banking system
GOLD IN USD
2002-2012
19.5% CAGR
A STEALTH MARKET
SILVER in USD
2002-2012
22.5% CAGR
GOLD PRICE & GLOBAL QE
GOLD STARTING
PARABOLIC RISE
1900 - 2012