
Gold that is stored outside the banking system should be the foundation of the wealth pyramid for high net worth individuals. Therefore, physical gold and silver should not be considered as an asset which is valued or traded on a daily basis.
Over time gold has represented an excellent investment that holds it value in real terms. In particular, gold appreciates during periods of high inflation and financial instability. As there is limited supply of gold it cannot be printed to finance the deficit spending of governments.
Gold can act as a critical hedge both against inflation and a deflationary financial collapse.
The world is currently facing a crisis of unprecedented proportions. The financial system is fighting for survival and has been temporarily rescued by governments printing unlimited amounts of money.
History repeats itself over and over again. Currencies have collapsed all over the world since the collapse of the Roman Empire and recently we recall the collapse in Argentina, Iceland, Indonnesia and Zimbabwe. The US & UK currencies are under extreme pressure with massive debt burdens.
Many Middle Eastern countries do not accept the USD as payment for oil due to its continual devaluation. China is the world's largest country and the government believes in removing the USD as the world's reserve currency rather pegging it to various currencies. China's gold reserves are amongst the smallest in the world and China expects to increase this in favour of the USD.
For further information on fiat money and why paper money has never and will never survive long periods.
Read: The Worldwide Crack Up Boom
Read: The Kondratief Theory
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