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Financial Sense/FS Staff/5-5-2020
“Depression is something different. A depression is a shock that creates scars that linger for years. And depression is different than a recession because while a depression is a recession, a depression invokes a secular change in people’s behavior. So how they approach savings, how they approach spending, how they approach indebtedness, how they approach, in this case, where we’re going to work, how we’re going to travel. I think that in both the context of the personal sector and the business sector, it’s going to be a big shift on how we create savings in cash and liquidity. It’s phenomenal to me that liquidity became almost a dirty nine letter word going into this—nobody had any.”
USAGOLD note: One of the themes developing among top economic thinkers is that we are rolling into new paradigm that will create changes in investor psychology that few can predict or define at this point in time. One of those changes, as Rosenberg suggests, could very well be a return to saving – saving for a rainy day or saving just to know you have capital put away that can be tapped if events warrant. Given the circumstances, saving gold for the long run, in our view (and we admit to a bias), is likely to return to prominence. Rosenberg advocates gold ownership. In fact, earlier in the year he predicted gold would surge to $3000.