As he watches the price of gold march inexorably toward $2,000 (and beyond), and keeps an eye on developments in the Western world, S&A Resource Report Editor Matt Badiali tells Gold Report readers in this exclusive interview that it's time to make space in the safe for gold. That's gold to hold, preferably to pass on to one's heirs, but if need be to pay for one's meat and potatoes. As for investments in these troubled times, he's hot about investors adding shares of the booming senior gold mining stocks to their portfolios because "we're going to see them really soar."
The Gold Report: A recent issue of Stansberry Digest addressed how the European bailout will influence the U.S. dollar—or, as some would put it, the U.S. dollar implosion. How do the paper currency issues afoot in Europe set up gold for a bull run?
Matt Badiali: First of all, if you think of the Fed as a company, they can print as many shares in the form of money as they want, but the underlying value of the whole company doesn't change. So that means the value of every share that they print or every dollar that they print has to get smaller to reflect its portion of the whole. At least with a share, you know that you own a piece of a company. It used to be that every dollar issued was backed up; you could take it in and you could get something—like gold or silver—for it. Paper currencies now are really IOUs that aren't backed by anything. There's really not much holding them up.
In the past when we've seen paper currencies implode, say in Argentina 10 years ago, and the typical American or Western European figured, "Oh, that will never happen to us. We're smarter than that." Now, having just watched this implosion with the European Union, they realize, "Holy smokes! This is real; this could absolutely happen to us."
Read More - Matt Badiali: Smart Money Holds Gold & Buys Major Miners
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