I had the chance recently to reconnect with John Rubino, CFA Institute contributor, blog publisher, and author of a number of financial books.

It was a particularly interesting conversation, as John has written a number of prophetic books warning of growing asset bubbles, and currently produces editorial research for CFA designated fund managers worldwide. As the subject of discussion, was a recent piece published by John, entitled,“Inflation is Raging – If You Know Where to Look“. 

In discussing his research on global markets, John notes that frightening asset bubbles are developing all over the world, and as a case in point, “Bitcoin…was about a dollar per Bitcoin a couple of years ago. Now it’s $1000…A painting by Francis Bacon called ‘Three Studies of Lucian Freud’ [just] sold for $142 million, which was the highest price ever paid for a painting at an auction….[A] diamond [just] sold for $83 million which is the highest price ever paid at auction for a diamond, and trophy real estate in Manhattan, London, Singapore and Hong Kong have all blown through previous records…So there are asset bubbles [occurring] all over the world.”

There is one final hard asset group which has yet to move into euphoric pricing John noted, and, “If you drew up a chart of all the hard asset investment options for the average member of the 1%…they would look at that chart and say, ‘OK, well my penthouse has doubled. My paintings are way up. My jewelry is way up. Well, look at gold and silver. It’s actually down. Let’s move some money in that direction.That’s the last good deal that’s out there on the list of things that are not fiat currency.’”

The fact that precious metals have yet to move into a bubble-phase according to John, “Implies that gold and silver are being really aggressively manipulated at this point and the reasoning for that makes complete sense—the central banks of the world need to depress gold and silver because those are forms of money which compete with the dollar and the euro in the end. When they go up, they make those currencies look bad.”

As a consequence of the ‘monetary truth-telling’ aspect of gold, “The central banks of the world…as part of the process of greatly expanding government debt, and financing that debt with newly created currency…have to use some of that currency to push down the value of gold and silver and they’re doing it,” John added, “So at some point in the not too distant future, this game has to end and when it does…the market [will] decide where gold and silver should be…[and] they will just snap right back into [price] alignment with art and jewels and high end real estate…or we’ll see a [supply] default on one of the major metals exchanges…”

As a final comment to investors, John noted that if confidence, “[Is] shaken in one major currency, it will be shaken in all of them…Once [the people] figure it out the game is over…[and we’ll] have to go back to some form of sound money. That’s really the end result of all of this—is that we will go back to gold and silver…something that cannot be inflated away [and] cannot be created in infinite quantities by central banks.”

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This was a powerful interview, conducted with an author and researcher who’s work is mainly reserved exclusively for asset managers worldwide. It is required listening for serious investors and market students.

To listen to the interview, left click the following link and/or right click and “save target as” or “save link as” to your desktop:

>>Interview with John Rubino (MP3)

To learn more about John Rubino and to follow his regular work visit:DollarCollapse.com

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Thanks,
Tekoa Da Silva
Bull Market Thinking