Egon von Greyerz, a legendary figure who has successfully predicted quantitative easing policies and historical currency fluctuations, recently wrote an article pointing out that a series of dominoes are about to fall. For anyone with savings, preserving value will be the top priority. Here are his views:

When a monetary era comes to an end, a series of dominoes will begin to fall, gradually at first and then suddenly accelerating. Several important dominoes the world will witness include: politics, geopolitics, currency, debt and investment assets.

The consequences of these dominoes falling will be unimaginable - social unrest, war, hyperinflation, deflationary collapse of assets, debt defaults, etc. But when the dust settles, there will also be countervailing forces, such as the rise of powerful BRIC countries, which often have commodity resources to back them up.

Gold will play a key role in this process. Central banks, sovereign wealth funds and investors will all turn to gold as the most stable component in a shaky system. This will lead to a fundamental revaluation of gold. Since more gold cannot be produced, the increased demand can only be met by higher prices.

The likely result is that the price of gold will increase exponentially.

The fall of asset dominoes will initially manifest as high inflation, which may evolve into hyperinflation and high interest rates. As the system collapses, the inflationary prices of assets such as stocks, bonds, and real estate will plummet by 50%-100% of their real value.

Most sovereign bonds are "best suited for wallpaper". I think the probability of this sequence of events happening is very high, especially in the West. Such financial, economic, political and social collapses are not rare in history, although not on this scale.

The dollar's status as a global trade currency is likely to decline at an accelerated pace over the next few years.

The BRICS countries use local currencies in bilateral trade as much as possible, and use gold as the final settlement currency. They are gradually moving away from the US dollar. At some point, this trend will accelerate because it will become redundant to trade in another country's currency, especially considering that final settlement can be done in gold.

As I have stressed many times, the US expropriation of Russian assets would result in central banks no longer holding US dollar reserves, but gold would become the only acceptable reserve asset.

I have experienced two major bull markets in gold in my 55-year career. The first was from 1971 to 1980 when gold rose 25-fold from $35 to $850. The second began at $250 in 2001 and just started a run that would take prices to current levels many times over.

However, my 55-year career covers just over 1% of gold's long-term bull market.

Since the advent of the fiat currency system, gold’s bull market has sadly been a reflection of governments’ economic mismanagement leading to ever-widening deficits and debts. Under this system, gold’s price primarily reflects the chronic debasement of paper money.

Central banks have invariably destroyed the value of fiat currencies through deficit spending and debt creation. For example, during the Roman Empire period from around 180 to 280 AD, the silver content of the Denarius coin dropped from almost 100% to 0%, with silver being replaced by cheaper metals.

The real move for gold and silver has not yet begun. At around $2320 per ounce, gold is as cheap relative to the money supply as it was in 1970 at $35 or in 2000 at $300.

As the dominoes fall, most people in the world will experience far more hardship than they are experiencing now.

For anyone with savings, whether it's $1 or $100 million, wealth preservation should be a top priority. Physical form of gold and some silver stored safely outside the banking system should be an absolute priority.

The article is forwarded from: Jinshi Data