I can’t recall exactly where in Jim’s speech this quote fit in, but his statement certainly sums up our present financial environment. Jim states that “every soverign wealth fund is a back door out of the dollar into assets.”

Now that the dollar has been gutted by greed and stupidity, the smart people are all fleeing to alternative currencies and safer investments. If we as small time investors have figured out that we distrust fiat currency and need to protect our assets, one would suppose that people with vast sums of money would be even more frantic to extricate themselves from a dollar implosion. The people at the top of the pyramid of power may be among the greedy, but they aren’t among the stupid. As Jim says, follow the smart money and see where they are investing and you won’t go wrong. His research in “connecting the dots” in the gold market led him to what he describes as “a corporate entity in Grand Cayman” who holds the derivatives on Barrick and would get the shares of the company like foreclosing on a house. When asked point blank who that corporation is, he said that he believes it is the Carlyle Group.

In Jim’s opinion, gold is the main focus, as “money.” Other metals and minerals are in demand, but not in the same sense as gold. When asked about silver, he reiterated that silver may outperform gold early on, but it won’t be supported at its ultimate high level as gold will be. He also said that he expects platinum and palladium to perform very well as investments.