Tuesday, June 2, 2009

Paul Van Eeden on BNN: Gold is $150 Too High

Paul Van Eeden, President of Cranberry Capital, was on BNN Friday. Mr. Van Eeden, is the absolutely brilliant man who about a year ago showed on Howard Green's show and, to the host's shock, correctly called the financial crisis that was about to occur, every bit of it. His top picks at the time were cash and gold. He is, in my opinion, by far the person who made the best call on BNN - all year long.

Mr. van Eeden says that cash and gold are still his top picks, and that the current rally is a sucker's rally. He does not believe in green shoots, there is far more downside to come. He predicts high inflation to come, no deflation. However he says gold is currently $150 too high! However, the conditions today (inflation coming) are perfect for gold to repeat 1970. Wonderful speculation.

Watch the show.

Other points:

- Invest in gold, not in silver. Silver consistently lags.
- The debt being created cannot be repaid. We are years away.
- We have never in history had the perfect conditions for gold that we have today.
- $150 gold too high call is based on a model he has of gold inflation vs USD inflation.
- USD to go down.
- zero risk of monetary deflation (some prices can go down, but that is not deflation)
- very high risk of high inflation to come. However in 2010, 2011, still dealing with inventory destruction.
- no risk of hyperinflation in the USD (50%/mo), but 10-20%/year is quite possible.

Stumble Upon Toolbar

No comments:

Financial TV

Blog Archive

// adding Google analytics