Economist Pippa Says “Buy Gold Now” … and I agree

And I say that she is totally correct. The global monetary system today rests on a very fragile foundation of trust with paper US dollars sitting as the base of the heart of the global monetary system. The collateral of the US dollar is that they tell you they can always print more, so why worry?

Pippa is Philippa Malmgren, a Ph.D. economist, and she definitely knows more about the fragility of the global monetary system than most, including me, notwithstanding having warned my Dundee shareholders in our recent annual report that I am more bullish on the price of gold than ever and am looking forward for the gold price to have a seismic move upwards.

And, yes, both Dr. Malmgren and I are aware that the recent days of gold prices have been very negative.

Philippa Malmgren has a strong resume, including having been special assistant to the President for economic policy during the Bush administration, and who today works with a long list of the world’s bigger banks and many otherwise impressive clients.

She believes, like we all should, that “Gold bulls have a rare chance to double up now.” As inflation pain continues to make headlines, no emerging market investors have any illusions. Inflation for them is here for the duration. A gold-backed Yuan is increasingly sounding like a sensible idea.

The recent bilateral currency deals with Australia, France, Russia, Singapore and many others reflect China’s desire to displace the US dollar as the world’s reserve currency.

Pippa believes that event is likely to happen and that the Chinese want the Yuan to emerge as a hard, gold-backed currency in a world where everyone else has chosen to inflate and devalue.

Robert Wenzel of the Economic Policy Journal in an article about Pippa said: “One wonders, given that she consults with the likes of Barclays, UBS Warburg, Deutsche, Bank of America and scores of others whether this is a common opinion within her circles.”