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Gold 'super bubble', another Civil War now more likely than ever - Doug Casey gets serious

Kitco News

The chances of Americans clashing in another Civil War are now higher than ever, said Doug Casey, who noted that in todays’ environment, gold, and gold stocks in particular, have not yet begun to see the highest price peaks.

“So what’s the next bubble, that’s what a speculator has to ask himself, and the answer to that is gold, also commodities in general. In particular, there’s going to be a super bubble in gold stocks,” Casey told Kitco News.

Casey is the founder of Casey Research and InternationalMan.com, and the author of the “Crisis Investing: Opportunities and Profits in the Coming Great Depression.”

Fund managers have been “miseducated” about gold since university, and so gold stocks are not even currently on the radar of most institutional investors.

“These gold mining companies are coining money at this point, and eventually they’re going to figure it out, and they’re going to pile into them,” he said, adding that the gold mining sector’s entire market capitalization is lower than Apple’s cash reserve.

Casey has made the assertion that America is headed for a civil war, but we’re now inching closer than ever, he said.

“I was shocked myself when I first said it, but not anymore,” he said. “This war will be war of secession, because the so-called Red counties and Blue counties should just part company. It should get violent, actually.”

Casey added that the fundamental differences between opposing political parties today run deeper than just disagreements over policies.

“This is a basically a cultural thing going on. Cultural disputes, or your view of the world, when you have that kind of a dispute it’s kind of irresolvable. It’s like trying to change somebody else’s personality. This is much deeper than polite political disputes of the past,” he said.

The only way to prevent this from happening is to start de-politicizing every facet of life, Casey noted.

“My answer to make America great again is not what the government should be doing, it would be reducing the functions of government by about 90%,” he said.

On the economy, a recovery is not taking place any time soon, Casey noted.

“We’re not having a V-shaped recovery, that’s nonsense. That’s political propaganda. This is going to go on for at least a decade, and it’s going to be scary, and we’re just in the innings still,” he said.

In an environment when risk assets are propped up by monetary and fiscal stimulus, and not by sound economic fundamentals, there is no more “investing,” only “speculating,” Casey remarked.

Since 1971 the markets and the economy have been in a bubble, they’ve rested on what the Federal Reserve does. Now, it’s completely a question of what the Fed does. The stock market that we’re in today and the bond market hyper-bubble are 100% due to the trillions of new currency units created by the Federal Reserve,” he said.

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