Expect Major Deflation In Gold Before Breakthrough (Doug Eberhardt)

| About: SPDR Gold (GLD)
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Why the financial media doesn't want you to buy gold and silver.

Why hyperinflation and dollar collapse are not around the corner.

His expectations for a coming deflationary contraction.

What to expect from the metals following this contraction (Hint: highly bullish).

Doug Eberhardt is the son of a commodities trader and has been working with gold (NYSEARCA:GLD) and silver (NYSEARCA:SLV) for years. Doug was kind enough to sit down with me and let me pick his brain for a few minutes.

A few highlights:

  • Why he used to bad-mouth gold.
  • How we can trace the purchasing power of gold back for 1000s of years.
  • The two failed attempts by the U.S. to print money.
  • Why the financial media doesn't want you to buy gold and silver.
  • What it means to be an intelligent gold bug.
  • Why hyperinflation is not around the corner.
  • Why the dollar is not collapsing.
  • Why Doug is currently dollar bullish.
  • His expectations for a coming deflationary contraction.
  • What to expect from the metals following this contraction.

I hope you enjoy the interview.

(Click the play button above to hear the podcast.)

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Final Thought

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I hope you enjoy the interview as much as I did. I look forward to your thoughts and comments below.

- Brian

Interview Preview


Well, hey Doug, welcome to the show.


Thanks for having me on, Brian.


Well, Doug, for people in our audience who may not already be familiar with your work, do you mind sharing a little bit of background as far as what you do?


Sure, I have been in the investment business for a little over 30 years now, and I started in the insurance business, learning the investment side when they expanded into that, and then went off on my own, and I was actually studying for the CFP exam, and read the book on investments and just decided at that time I knew enough about gold and where gold fit in a portfolio that I didn't like what I was reading, and decided just to kind of go after that industry. I wrote a book, Buy Gold and Silver Safely to kind of help people understand that for which they don't know about gold, because most people don't know anything.




As far as gold in an investment, as an investment in the diversified portfolio, I think there's a good reason for it, and from there, I decided that you know, this book hit the 1 percent who actually goes out and buys a gold book, and I needed something to hit the other 99 percent of investors. I actually wrote a book just a few weeks ago that came out called Illusions of Wealth, and that book goes into the basics of investing. A way that it really, in our system, our education system has not been addressed. In doing this, it kind of opens people's eyes to what they don't know about just regular investing, and because most mutual fund managers don't beat the indexes, hedge fund managers don't beat the indexes. For some, just a simple index fund is good, and I just kind of open people's eyes to that, but then I go beyond and get people to think outside the box first.


That's great. You said you decided to pursue the gold and silver industry. Approximately what was the time frame of that?


That was in 2002, when I first started discovering it as an advisor through the work of Richard Russell. He had the Dow Theory Letters, and I met people from all over the world and I met people from all over the world, and it gave me a different perspective on investing that I hadn't heard before. Things like Austrian economics and living within your means as a government, and what I did from there, it took me about four years to really get to understand the industry, and then it took me another four years to write the book, Buy Gold and Silver Safely, and during that time, I pretty much consider myself one of the few experts that understands gold inside and out, and also has a business that is different than most other gold dealers out there that you see advertising on TV, because I don't sell the numismatic or rare collectible type coins, and I just stick with mostly the bullion coins.

Disclosure: This article is for information purposes only. Comments made by my guests do not necessarily represent the views of Brian or Investor in the Family. There are risks involved with investing including loss of principal. Brian and Investor in the Family make no explicit or implicit guarantee with respect to performance or the outcome of any investment or projections made. There is no guarantee that the goals of the strategies discussed by Brian and Investor in the Family will be met.



Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.