Gold & Silver Sniffing Out Risk & Fear – Bill Holter

By Greg Hunter’s USAWatchdog.com (Saturday Night Post)

Precious metals expert and financial writer Bill Holter worked side by side with his business partner Jim Sinclair for more than a decade.  No two people knew more about markets and money than them.  Two years ago, Sinclair, aka “Mr. Gold,” passed away.  Now, the baton has passed to Holter, who is the new “Mr. Gold.”  Holter warns one explosive new all-time high, hitting day after day, for the yellow metal is signaling big trouble coming.  Holter explains, “There is a huge breakout.  In my opinion, the metals market is sniffing out risk and fear. . .. They funded literally trillions of dollars by borrowing in yen.  Now, what has happened, the Japanese yield curve has gone from basically zero to over 1.6 % on a ten-year (bond) and 3.2% on a 30-year (bond).  So, that carry trade now is being squeezed because the yen has gone higher . . . your cost to carry has gone higher because Japanese yields have gone higher.  So, the gold market is looking at the Japanese carry trade in the process of blowing up.  It is sovereign bonds across the world.  If you look at interest rates worldwide, they are actually going higher.”

If the Fed cuts interest rates later this month, it may not be good news.  The bond market could rebel.  Holter says, “You could see bond prices drop and yields go higher.   There is also a very high probability with lower Fed rates that the dollar weakens.”

Earlier this year, Holter called the global economy a hyper-levered house of cards.  The leverage has gotten worse, much worse.  Holter says, “There is a turbocharge to this, and when I say turbocharge, it’s fear.  It’s fear of bankruptcy.  It’s fear of default.  The world is clearly over-levered, and there are going to be sovereign defaults left and right going forward.  The only two monies that cannot default on the planet are gold and silver.”

So, is there going to be a big crash coming soon?  Holter says, I don’t know if it is going to be September, October or whatever, but you look at the math and the valuations.  The valuations are ridiculous.  Look at the math on sovereign debt all over the world.  Look at the math on the amount of debt outstanding and margin debt, and this is a huge credit bubble.  Credit bubbles do not go away quietly.  Credit bubbles burst and markets collapse.  The problem now is there is so much debt in the system and the system is so big the central banks together cannot stand against the tsunami of bankruptcies that are coming.  There is no white knight this time.”

Holter (aka, the new Mr. Gold) says, “The vast majority of wealth will seek a safe haven that cannot evaporate or be taken away.  It’s going to be gold and silver.  You are going to see a bull market in gold and silver unlike any bull market in any field ever. . .. Gold and silver will make financial history because capital from all over the world will be trying to get off the railroad tracks because gold and silver cannot default.”

In closing, Mr. Gold says if you just divide the amount of official gold held in the US Treasury by the official US government debt, you get about $135,000 per ounce gold price and around $6,700 per ounce silver price.  Holter says with $2 quadrillion in derivative debt, who knows how high the price of gold and silver can go.  One thing for sure is gold and silver cannot default.

There is much more in the 50-minute interview.

Join Greg Hunter of USAWatchdog.com as he goes One-on-One with financial writer and precious metals expert Bill Holter for 9.6.25.

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After the Interview:

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Bill Holter’s website BillHolter.com just keeps growing.  There are lots of new free articles posted.

If you need to contact Bill Holter, his email is [email protected]

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