“What caused that hasn’t gone away. The main problem with the global financial system is there is far too much debt. And because of the excessive debts that couldn’t be serviced, we almost had a systemic breakdown just a few years ago.
The total debt levels around the world have not shrunk since that time, in fact they have increased. What has happened is a very minor amount of private sector debt contraction has been far more than offset by the sovereign sector. It’s the governments that have been levering up over the last 4 to 5 years.
But the total debt in the system that has to get serviced has not shrunk. Therefore, the problems that almost caused a total meltdown have not gone away. They’ve (actually) gotten worse. So exactly as you are saying, Eric, a prudent investor should not be at risk and should not have his gold at risk in the global financial system. It is not safe.