Gigantic Short Position In Gold And Silver Markets Now

by: Gregor Gregersen

Summary

The US today is the largest debtor nation in the history of the world.

The Gold Standard has never worked because it requires great discipline from governments.

September's gold to silver ratio of 84.1 was the highest since the nineties.

World renowned investor, Jim Rogers, sat down with SBTV at The Safe House and shared his thoughts on the changing fortunes of the US, the coming global financial collapse and the state of the gold & silver markets.

Jim recounts the difference in the fiscal state of the US since the 70s. Back then it was a creditor nation. Today, the United States is the largest debtor nation in the history of the world. Jim further adds, "The (nation's) debts are going higher and higher every day. Nobody is doing anything about it. Every country in world history that has gotten itself into this situation has had a crisis."

He believes that central banks may attempt to introduce the Gold Standard again when the economy deteriorates. However, central banks will either abandon it again or they will 'change the rules' because the Gold Standard requires great discipline to maintain... and politicians do not like fiscal discipline.

Jim reveals that there is now a gigantic short position in the gold & silver futures market. "Historically, when that happens, they go up for a while. Undoubtedly, gold and silver will go up because of this gigantic short position."

With the gold-to-silver ratio reaching as high as 84.1 in September, Jim agrees that silver is a better buy than gold on a historical basis at this moment.

Discussed in this interview:

  • 02:02 How America has changed in 50 years.
  • 03:20 Central banks don't know what they are doing.
  • 05:32 Jim's account of the Nixon Shock.
  • 07:56 Gold Standard requires great discipline.
  • 09:10 Jim's outlook of the next economic collapse.
  • 11:30 Gravity of next economic collapse.
  • 12:25 How China will be affected by the collapse.
  • 13:40 Winners emerging from the economic crisis.
  • 16:47 Reversal of role between east and west.
  • 18:30 What should investors do?
  • 19:42 Gold to go into a bubble.
  • 22:05 Good time to buy commodities?
  • 23:59 Electric vehicles and battery metals.
  • 26:23 Huge potential in silver.

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. I have no business relationship with any company whose stock is mentioned in this article.