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Is a gold bull market underway?

Michael Cuggino, Adrian Day, Mary Anne and Pamela Aden, Harry Browne, Robert Wiedemer, James Turk, Doug Casey, David Morgan
January 6, 2004
Video Transcript

Host: Is it any wonder that in these uncertain times the world is already turning to gold as the preferred storehouse of wealth? The fact is, a gold bull market is well underway. In recent years, gold has solidly out performed the stock markets. Beyond the United States, individual accumulation of gold is on the rise. As citizens from emerging economies like China and India are acquiring gold like never before. Governments can print up more and more money, but they cannot create more gold, and that makes it a rare and valuable commodity to own.

Michael Cuggino: Gold is a store of value and people flock to it in times of uncertainty. People will look towards it in inflationary times. It goes to offset the value of that paper asset. If people lose confidence in the economic system, they lose confidence in paper assets like stocks and bonds. They will avert to what's known as, "hard assets" like gold and silver.

Adrian Day: Well, of course, a lot of things affect a precious metal as a macro economic situation, as a geopolitical situation, and there's the industry specific situation. I think right now they're all very favorable for gold and we have of course a falling dollar. A falling dollar is in of in itself bullish for gold. I think it's been the main driver of gold over the last several years.

Mary Anne Aden: Since 2000, a mega shift has happened. It's something that we often talk about. The environment went from going from stocks, which where equity markets were the rage, and that soured in 2000. The market came down sharply and gold has been stronger than stocks or bonds since then.

Harry Brown: Gold is the one asset that is not somebody else's liability. If you have gold coins, nobody owes you anything. If you have a treasury bond, if you have a stock, if you have a savings account, whatever it is, somebody owes you something. All you have is a piece of paper that says that somebody owes you something. When you have gold in your hand, nobody owes you anything.

Robert Wiedemer: What's interesting about gold, I talk about we had a virtuous cycle of bubbles interacting to push the economy up and as they start to pop it's become a vicious cycle of popping bubbles pushing the economy down. On the flip side of that, we're sort of developing what's in a sense a sort of interactive set of bubbles pushing gold up. That will all interact with each other, a falling dollar, a falling stock market, a world economy that's in trouble pushing even more world investors into gold who are already inclined to invest into gold in the first place. So you've got that same sort of virtuous cycle now of, I won't call it bubbles but you can look at it that way, factors that are working together interacting to push the price of gold up. That's going to be one of the key reasons it's going to do very, very well.

Doug Casey: I think this time around, gold is not just going through the roof, it's going to the moon. This is going to be a moon shot this time around. The economic clock on the wall tells me that just like in the early 70's this is the time to buy commodities in general. That's true of almost all commodities I think, but in particular, gold and for a different set of reasons silver, the two precious metals.

David Morgan: Take a position and hold on for the ride, because, I'm telling you, it's going to be heck of a ride. I'll go on record as this and I don't mind saying it, the last move from 1971 to 1980 that's a warm up phase compared to what's going to happen in the next 10 years in the metals market.

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