I had the chance to speak with chairman and founder of Casey Research yesterday, Doug Casey, out of Uruguay. It was an excellent conversation on markets and more, but due to telephone line quality, only printed highlights of the interview are shared below.

When asked about the best asset class in the world right now for investors, Doug said, “Gold and silver are perhaps the best places to be right now, and I kind of hate to say that, because they’ve been in huge bull markets for the last 10-12 years really. At this point they’re fair value, and I continue buying them. I think a substantial portion of everybody’s net worth should be in physical gold and silver at this point, because they’re the only financial assets that aren’t simultaneously somebody else’s liability. There’s no counter-party risk with them, and that’s critical.”

Doug further added that, “The junior gold stocks now, compared to gold, are about the cheapest that they’ve ever been. So if somebody wants to participate in that highly volatile, very speculative space, now is the perfect time to do it. Over many years, there have been many markets where they’ve gone up 10 to 1, fallen back 95%, than they go up 10 to 1 again. And some of the stocks go up 50 to 1, or 100 to 1. So now is the perfect time to look to get involved in them. Because one thing the governments are going to be doing, is creating trillions more dollars, and that’s going to create other bubbles. So if you’re well positioned, you can capitalize on that, and make a fortune as the greater depression dawns upon most people.

There is almost certainly going to be a bubble in gold and silver, and a super-bubble in the companies that explore for and mine them. So buy them now.”

Doug added that the financial crisis in 2008 was just a warm-up, with the ultimate crisis bringing about select bargains for the prepared, and catastrophe for most: “Since 2007, we entered a gigantic hurricane, and from 2008 to early 2010 we were at the leading edge of the storm. For the last several years we’ve been in the eye of the storm, but we’re going to come out the trailing edge, and it’s going to be much worse, and much bigger, and much longer lasting that what we saw back in 2008. So I think there will be some bargains, but not now.”

“These governments have printed up trillions and trillions of currency units, not just the US government, but the Europeans, the Japanese, the Chinese. These trillions of currency units have really inflated the value of everything, as people look to hide capital in something that has value. We’re in the middle of a gigantic bond bubble, they’ve created a bubble in the bond market that’s bigger than the bubble that was in real estate, and bigger than the tech bubble in the stock market up until 2001. When the bond bubble that we’re in now deflates, it’s going to be a catastrophe for most people.

Bottom line according to Doug Casey: We’re at a quiet moment in the ongoing crisis, and as currencies and bond bubbles begin to implode, gold, silver, and mining shares may explode to historical proportions.