"Invest immediately in gold and silver," the founder of GoldSwitzerland urges.

Egon von Greyerz, founder and managing partner of the assets management company Matterhorn Asset Management, believes that the central banking system will collapse in the next few years. The cause is the abusive issuance of money and the excessive indebtedness of governments, businesses and consumers. 

With the market experiencing a sharp absence of buyers, the smartest thing right now is to invest in tangible assets, including gold and silver, explained von Greyerz, who is also the owner of GoldSwitzerland, a firm busy trading and keeping precious metals. 

Egon von Greyerz says the macroeconomic problems countries face nowadays are the consequences of uncontrolled money issuance and irresponsible assumption of debt, both of which are manipulations managed by central banks.

The 2008 financial crisis, the housing crisis that followed in the US and the domino effect in industrialized nations, the evolution of rates, inflation, etc. – all are consequences derived from the activity of the financial system based on the governance of central banks.

The total debt is approaching a critical mass after which the current financial system will not be able to survive, and the bankruptcy of Silicon Valley Bank and the investigation of Credit Suisse are only the beginning, according to an article signed by the Swiss billionaire, who is an active expert in the field of market analysis. 

The analyst also believes that central banks are unduly concerned with bailing out private commercial banks when they are drowning under the weight of problems of their own making.

In virtually all cases the central banks decide to print more money and rescue the losers.

Due to high debts, the world will start selling, but given the absence of buyers, the value of the offerings will decrease by 70% and more, and in some cases even to zero, warns the billionaire.

Von Greyers recommends paying off all debts to avoid the confiscation process and investing in tangible assets, with precious metals - especially gold and silver - representing the safest investments.

While the urge to invest in gold can be understood - the man has a precious metals business - it is suspicious that the expert has not suggested solutions to the problems he identified, given that it’s not the first time Egon von Greyerz lashes out at the central banking system.

In 2010, the businessman predicted global hyperinflation, massive unemployment, and the "end of Western civilization," calling for investors, as he does now, to put their money into gold and silver. 

Roubini, pessimistic as well

Egon von Greyerz's view of an impending crisis in the banking sector is shared by economist Nouriel Roubini, professor emeritus at New York University's Stern School of Business. 

Roubini said in a commentary for market monitoring portal MarketWatch that the US banking sector is going through turbulent times, which are due to unrealized securities losses amounting to $620 billion. The Federal Reserve has only made things worse – after raising the interest rate, the market value of US bank assets fell dramatically, so that currently unrealized losses are actually $1.75 trillion, or 80% of their capital. 

Nouriel Roubini sees troubles for the US banks. Image: Reuters

"Judging by the quality of their capital, most US banks are technically close to insolvency, and hundreds are already completely insolvent," the economist was quoted by News-Cafe-eu as saying.

When depositors feel that their money is no longer safe, confidence in banks will evaporate and they will rush to withdraw their funds, causing unrealized losses to become realized. Practically everywhere in the world, central banks have raised base interest rates, putting additional pressure on commercial banks, according to Roubini.

Interest rate increases, which were supposed to ensure price stability, can result in a recession and rising unemployment, and against this background the risk of severe financial instability also grows.

Nouriel Roubini is also called "Doctor Doom", because of his frequent negative forecasts. His colleagues and journalists alike observe that many of the alerts he issued never came true. However, Roubini correctly predicted the 2008 housing bubble burst, two years before it happened, and the financial crisis that followed.