3 Min. Gold News – Jim Rickards – BBC Radio – May 7, 2014

3 Minute Gold News

A Quick Read for Busy People

A 3 minute synopsis of a clip from a recent interview with Jim Rickards, by BBC Radio Live Five discussing his New York Times bestselling book The Death of Money.

Topics:

Gold
China

Jim Rickards

BBC Radio 5 Live

Interview with Jim Rickards
May 7, 2014

GOLD

Jim says he looks at Warren Buffett buying hard assets, and gold by the tonnes.

There are only 35,000 official tonnes of gold in the world, not counting private gold.

China has bought about $3,000 tonnes in the last four years.

So 10% of all the official gold has moved to China.

The Bank of England should be out buying gold tomorrow. They should print sterling and buy gold.

For the individual Jim recommends they put 10% of their investable assets in gold. You shouldn’t go “all in” or overboard. 10% will protect you in these various scenarios.

Jim says that if he’s wrong and it’s all good then gold will go sideways and you won’t be hurt too much. If he’s right and you get wiped out when the asset bubbles crash then the gold could protect you.

These are asset bubbles — London property, Chinese property, New York property, U.S. stocks.

Leverage is at an all time high. These are asset bubbles.

When they crash, which they will because they always do, you’ll get wiped out. But gold could triple or quadruple in that scenario and that’s your insurance policy.

CHINA

London is a magnet for a lot of flight capital around the world.

Good news for London is bad news for China.

You can see Chinese billionaires getting out as fast as they can — smuggling, under-invoicing, rigged deals with casinos where they lose money and the casino operator wires it to a foreign bank account.

This is flight capital all over the world.

There’s a very bad credit crack up coming in China.

It’s starting sooner than Jim expected, and he covers it in Chapter 4 of The Death of Money.

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