We can talk about technical charts, supply and demand fundamentals, and price manipulation, all of which point to significant increases in the value of gold and silver for the foreseeable future.

But according to Golden Arrow Resources CEO Joseph Grosso, who is credited with the discovery of the largest silver deposit in history, the single biggest reason that retail investors, institutional players and governments around the world are gobbling up physical precious metals, resource stocks and ETF’s at unprecedented levels is that they are scared to death of the state of the global economy and where it will go next.

Like an expecting father waiting for five years to see a baby being born, we are at the inception of a mining economy… There is a pause, a slight pause towards the U.S. dollar and that pause is allowing the oldest currency in the world, gold and silver [to rise] and that is now in favor.

…Because there is fear. When there is fear, that’s when gold does best. 

… Right now, this is a scary time… People want to hop out [of traditional assets] and find safety in precious metals. 

In the following interview with SGT Report the level-headed Grosso explains that there is still hope for America and the U.S. economy, but there will be a lot of pain before it gets better, the consequence of which is an environment that has historically boded well for precious metals as safe haven assets.

(Watch at Youtube)

SGT Report: There is a web bot project out there that mines the internet for data… and the data mined by the web bot project suggests that some time in the future, because of worldwide monetary chaos, we will eventually see silver return to a 10-to-1 or 8-to-1, with some of the indicators suggesting it could actually go to a 1-to-1 silver-to-gold ratio… Right now the silver-to-gold ratio is hovering somewhere around 70-to-1… And you know as well as anyone, because you mine the stuff, silver is found in the earth’s crust much closer to a 10-to-1 ratio…

Joe Grosso: What you’re saying is really what dreams are made of… I remember a time when silver was somewhere around 40-to-1 and then it gravitated to 80-to-1.

So I do feel that there is a catch up for silver to come into a more humane ratio between the two, but it is of course it is the biggest dream that we will have a ratio of 10-to-1… this would make the silver price worth about $130 per ounce [at current gold price].

We’d like to see a return in the next three to five years where a lot of mines had to shut down and they can re-open again. Unfortunately for some, they have been liquidating assets… and out of the spoils we are now looking at acquiring or merging ourselves.

…

Silver… we’re glad to be in silver because it has two uses. One, as a precious metal. And second, almost 50% of the silver produced in the world is used for industrial use.

As Joe Grosso notes, mining companies have been pummeled over the last five years, leaving many to be either completely liquidated, or pausing operations until such time that prices eventually rise as a result of either core supply and demand fundamentals, or outright panic buying during economic crisis.

But unlike most proponents of a rising silver price, Grosso brings a unique perspective to the conversation, because he doesn’t necessarily see Venezuela-style meltdown, hyperinflation and chaos coming to the United States:

I am firmly of the belief that Venezuela will not happen in America… I think the American people have been tried [historically]… It’s happened before and America came out of it… It will happen again and America will come out of it… It’s a tough time… The administration will be under a lot of pressure…

But you do have what it takes. You have a fully developed economy which has been going for years… The comparison is pale in my estimation… The United States is in a much better position to recover.

I think that America will come out of it. 

America is America.

… I really feel that we need to be grown up enough to know that in order to cure any illness, you need a bitter medicine. The more powerful the medicine, the quicker we will return to normality. 

And America, I feel, will know that. You have the intelligence to know that. Not everything is only up and up and up and up.

It needs to be dealt with, with stronger resolve. And I am sure your country will understand that the tough things that are to come is the medicine that is going to resolve the problem. 

But if you don’t take it, you don’t resolve it. 

The American people do, indeed, understand that the system is broken as evidenced by the rise of extremely popular anti-establishment political candidates on both sides of the aisle.

It appears that, at least on some level, the people are willing to take the medicine.

But whether the governing bodies dispense it is a whole nother matter.

Failure to do so, says Grasso, means that things will only get worse.

If and when things get worse, panicked and concerned citizens the world over will continue to shift capital into assets like gold and silver, which will be the only currencies left standing when it really hits the fan.

To learn more about Joe Grasso and his latest projects visit Golden Arrow Resources.

For more important news updates and interview like the one you just watched visit SGT Report.

SHTFplan and Mac Slavo www.shtfplan.com

Earlier this month, as retail investors lost confidence in the global economy and broader stock markets, an air of panic began to set in. Reports indicate the lines were literally forming around the block at gold stores throughout London and elsewhere. It was, by all accounts, the very scenario one might expect in an environment where trust in government and central banks has been eroded.

But it’s only the beginning, explains Auryn Resources executive chairman Ivan Bebek in an interview with SGT Report, as nation states and large investors are trying to get their hands on gold as fast as they can:

Before any big move in gold we have always seen extreme volatility or volatility pick up. This was just a taste of what’s to come in the next few years… We’ll look back at this and be reflecting on how minimal this move was compared to what’s going to happen as we go forward…

It’s a smart money trend… they can see where their countries are going… where the world economy is going… it’s surprising how late they are to the party… late to a very small door to get a bit of gold that’s out there… it’s going to be a remarkable reaction when that all comes to fruition. They’re just positioning themselves for what’s to come and that’s what they have to do. And getting back into the gold trade, the gold business and hoarding gold… they’re doing that because they see a very big gold market coming ahead like the rest of us.

Full Video Interview:

(Watch At Youtube)

And while there is most certainly big money moving into gold ahead of negative interest rates, a potential ban on high denomination cash bills and the global calamity to come, Bebek highlights the fact that retail investors haven’t yet begun to get involved on any meaningful scale. Many remain committed to the view of mainstream financial pundits and entrenched analysts talking their books, so they’re going to hold on to their more traditional investments until such time that they see everyone else panic. And when that inevitable rush to the exit door comes they’ll be looking to shift their capital into safe haven assets, along with the rest of the herd.

But just as there will be only one exit door for the mob trying to sell, there will also be a small entrance way for those looking to protect themselves with gold:

When you took the 2011 gold run to $1900… and you took the market cap of all the gold companies in the world… they would have fit into one big tech company on the NASDAQ. That’s how small the world gold investing market is.

So, when you look at the size and scope of the money that can come into the gold market… the door on the way out and the door on the way in… it’s really small.

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This is the start of the turn and it’s a very small door, meaning there are very few gold investments to make. In a few years there will be hundreds of gold companies like ourselves, or even thousands like there were before.

But that first wave is where all the money is made. You can go back to 2002 – 2004 and you look at the first wave and you look at what happens when gold starts to move… what happens to gold equities… the 100%, 200%, 1000%, and 10,000%  returns… those all can happen from this point forward.

It’ll be the place to put your money. At the same time, the early few years will be where most of the money is made percentage-wise.

What we saw in London a couple of weeks ago was a microcosm of what’s to come. Though there remain those like former Federal Reserve Chairman Ben Bernanke who say central banks and governments buy gold not because it’s money but because it’s tradition, that narrative, says Bebek, has fallen apart:

Five or six years ago they got onto that page, but now they can no longer say it. When you have China, Germany, Europe and all these world economies believing that it’s not a tradition… that they need to own it as a currency… it doesn’t matter what they say because the demand is so big worldwide… actions are bigger than words… the world is hoarding gold… they’re starting to go long gold… so that defeats the whole argument they have been making.

We know for a fact that the smart money including major global players like George Soros and Carl Icahn are gobbling up all the gold they can get their hands on. When the rush for the exit in global equities starts – and you better believe it will – there will be an equally panicked rush into safe haven assets.

We literally saw how small the door was as people lined up to get their hands on physical gold. Now imagine, as Auryn Resources’ Ivan Bebek noted, what that line will look like on a global scale and what it will do to gold prices.

SHTFplan and Mac Slavo www.shtfplan.com