Gold is genuine Wealth, it is real money

Gold is genuine Wealth, it is real money
Throughout history, no paper currency has survived in its original form. Paper currencies are normally inflated away until they are worthless.

The purchasing power of the US dollar has declined by 90% since 1950. The situation is the same for most currencies.

When governments come under financial pressure they can never resist printing money to pay for debts, be they war debts or just excessive spending.

Gold is the only currency which has no liability attached to it.

So far no paper currency has survived intact over a longer period whilst gold and silver, as a matter of fact, has represented real money for several thousand years. When paper money fails investors who own gold /silver still have a currency which holds its value despite the fact that banks may be bankrupt.

Iceland is a recent example of how paper money can lose its value overnight. With the massive debt levels and money printing in many countries including the USA and the UK, the risk of a similar default in other countries is very high.

Gold has at all times represented real wealth as well as being a medium of exchange. “Old money” has always maintained a percentage of its wealth in gold since the specific characteristics of gold make it probably the safest and most attractive investment for storing and preserving wealth.

Gold stored outside the banking system should be the foundation of the wealth pyramid. Therefore, physical gold or silver should not be considered as an asset which is valued or traded on a daily basis.
Gold – an excellent investment.

Over time gold has represented an excellent investment that holds its value in real terms. In particular, gold appreciates during periods of high inflation and financial instability.

As there is a 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, and a message of warning is only negative to those who aren't prepared.

The financial system is fighting for survival and has been temporarily rescued by governments printing unlimited amounts of money.

There are only two possible consequences of these actions:

  • Either the government succeeds in temporarily rescuing the financial system by printing gargantuan amounts of money. This will lead to inflation or hyperinflation making paper money virtually worthless.
  • Or, if this fails, there will be a deflationary credit collapse which will lead to a systemic failure of the financial system.
  • Both of these outcomes will be extremely bullish for gold which always benefits from money printing and high inflation. In the Weimar Republic in the early 1920s gold went from DMark 100 per ounce to DMark 100 trillion. In the case of a deflationary collapse, many or perhaps most banks will fail whilst gold (stored outside the banking system) will be the only save money.

So for sound and prudent diversification, it would be expedient that a core physical position of physical gold and silver be considered as part of a savings or investment portfolio.

In the case of bank failures, it would be prudent to diversify a core physical position of gold and silver easy and simple, outside of the banking system.