Rudi Fronk and Jim Anthony, cofounders of Seabridge Gold, discuss recession, central bank panic and an outrageous gold price.

In our view, gold investors should settle back with some popcorn and enjoy the coming fireworks, which will include the best gold bull market ever, with all the volatility that implies. We see new all-time highs just around the corner. The challenge is to take a position and stay the course. Central banks are about to pay for decades of bad policy and gold will reap the dividends.

Let's be clear about one thing: the global economy is falling into a deep recession but it is NOT due to the U.S.-China trade war, and a resolution of that war, no matter what it is, will not avoid the inevitable. Inverted yield curves and an historic collapse in bond yields are the clearest message that markets can send on the economic outlook. The trade war does not explain why Europe and Japan have been on the brink of recession for more than a year. Nor will central bank easing prevent a recession when monetary conditions are already the loosest in 25 years. Central bank monetary policy is part of the problem, not the solution. In our view, the economy and the stock market are not going to be saved by trade deals and monetary policy.

The problem is the debtway too much of it, mostly unproductive and at ultra-low interest rates. In a recession, this is extraordinarily precarious, especially the hugely inflated corporate debt. Profits are stagnant, margins are falling, balance sheet cash ratios are severely depleted and liquidity in the corporate bond market is already shockingly poor. Why do you think the three top bond fund managers (DoubleLine, PIMCO and Guggenheim) say they...

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