Financial writer and precious metals expert Bill Holter says, “Gold is like a tractor in first gear pulling up a hill,” as it touches all-time highs once again. Holter thinks the “gold tractor” is going to be shifting up a few gears in the not-so-distant future. Holter, who has been dubbed the new “Mr. Gold” by the reigning “Mr. Gold,” Jim Sinclair, explains, “There is no rush like a gold rush. The reason being is you get momentum followers. You get people who are greedy who want to make money. Then you have the fear trade, and the fear trade is probably the most powerful emotion. What you are seeing around the world is big money understands we have a credit implosion coming, which is going to take the currencies with it. Where do you hide? The place to hide is in gold and silver.”
As much as Holter likes gold, he says silver is way undervalued compared to gold. Holter has long said when silver prices takes off, “it will be like gold on steroids.” Holter says, “The reason silver is undervalued is it comes out of the earth at 10 (ounces of silver) to 1(ounce of gold). That’s God’s ratio. Man’s ratio had gotten to 120 to 1. I can tell you which ratio is right and which ratio is wrong.” Holter thinks God’s ratio is the correct one.
Holter says, “All roads lead to gold” especially in today’s economic environment. Holter explains, “Gold is the arch enemy of fiat currencies. . . . You can just use your common sense and see we have a big, big problem out there, and capital is going to need a place to hide. Gold and silver are the only money that do not have any liability. Gold and silver are proof that labor, capital and equipment were used to create that. It already has been done, whereas everything else is a future promise, and promises are made to be broken . . . . . The central banks must either inflate or die. . . . The central banks have to reflate or inflate, whatever you want to call it; otherwise, the entire credit system comes down.