Gold is back above $1,800, and Bitcoin is holding firm above $60,000. The US Dollar index is down huge today, falling 0.44% to 93.39. Lawrence Lepard talks all things Bitcoin and gold at the 2021 New Orleans Investment Conference.
Lepard opens his talk with some basic principles and facts:
“Sound money allows people to plan.”
Whereas,
“Unsound money is, I think, a system that allows people who run the system to benefit at the expense of others.”
The Search for Sound Money
After proclaiming that a resent is bound to happen, the host asks: What is sound money?
“Historically, sound money has always been gold because its the best stock to flow ratio asset and it’s universally recognized and so on and so forth.
So, 5000 years of history says that the best form of sound money is and has been gold. And, probably will continue to be, to some degree, to be gold.”
Lawrence Lepard Discusses the Competing Standard of Bitcoin
He immediately disregards all cryptocurrencies except Bitcoin. Lepard states:
“Bitcoin is a technological form of sound money, which is an immutable ledger. Which I believe is or could ultimately be sounder than gold.”
On the comparison with gold, he notes,
“In the shorter time frame, I think they’re both going to win. And, so, I’ve invested in both.”
Following a Collapse, the World Will Need Trust
Lepard says that it’s going to come down to what people trust at the end of the day. And that when inflation gets too out of control, people will demand a change.
Lepard quotes Voltaire as they discuss the dismal history of fiat currencies.
Lepard points to the US housing market being up 25% last year alone. Max Keiser spoke about this a few weeks ago, noting incomes are up 3%, while home prices in some areas are up as much as 36%.
“That was bigger than the housing bubble. The biggest gain in the housing bubble was 14%.”
He goes on to talk about global de-dollarization from China to Russia.
From an investment point of view, to protect their Larry says:
“Bonds are the worst investment in the world right now. By a huge measure, because they are going to lose their purchasing power.”
From there, he outlines sound money alternatives. From housing to gold and silver coins and then mining companies and, of course, Bitcoin.
“You need to move some of your assets into something that provides you with inflation protection. I think that’s the most important thing.”
He concludes that anyone who is allocated 100% Bitcoin or 100% gold is crazy. Finally, Lawrence Lepard continues to advocate holding some of each depending on one’s risk appetite.