Episode Details
Back to Episodes
October 27, 1997: Stock Market, Gold, & Debt - Andrew Gause & Don McAlvany
Published 2 years, 3 months ago
Description
Art Bell brings on currency historian Andrew Gause to break down the stock market bloodbath of October 27, 1997, when the Dow Jones fell 554 points, its largest single-day point drop in history. Gause explains how the Federal Reserve will likely flood the system with liquidity to prevent total collapse, warning that the inevitable consequence is severe inflation.
Gause traces the crisis beyond the Asian currency collapses, pointing to overinflated price-to-earnings ratios, rampant margin buying by individual investors, and mutual fund managers who leveraged their holdings. He predicts another 1,500 to 2,500 points of decline and issues a strong buy signal on gold coins, arguing that physical gold represents the only reliable store of value. He also describes how insiders likely exited the market weeks before the crash.
Don McAlvany follows in the second half, characterizing the market as a speculative mania rather than a healthy bull run. With 75 million Americans invested in the most overpriced market in history, he warns the correction is far from over. Both guests recommend moving 40 to 60 percent of investment funds into physical gold.
Gause traces the crisis beyond the Asian currency collapses, pointing to overinflated price-to-earnings ratios, rampant margin buying by individual investors, and mutual fund managers who leveraged their holdings. He predicts another 1,500 to 2,500 points of decline and issues a strong buy signal on gold coins, arguing that physical gold represents the only reliable store of value. He also describes how insiders likely exited the market weeks before the crash.
Don McAlvany follows in the second half, characterizing the market as a speculative mania rather than a healthy bull run. With 75 million Americans invested in the most overpriced market in history, he warns the correction is far from over. Both guests recommend moving 40 to 60 percent of investment funds into physical gold.