Dear friend and client of Physical Gold Fund,
We are pleased to release this next episode of the Physical Edge with Alex Stanczyk. In this episode, Physical Gold Fund’s Managing Director explains the importance of jurisdiction choice for vaulting, as well as why vaulting outside the banking system is a prudent safe-guard in today’s financial environment.
- According to the IMF, gold is the only Case of a financial asset with no counter party liability
- Gold will not default like some other financial assets could during a liquidity crisis
- Over 30% of the bond market is now negative interest rate bearing, with over $7.9 Trillion at negative yield and gold is looking more attractive
- The meme that gold is a bad investment because it produces no yield does not stand up under scrutiny, all forms of money generate no yield unless invested
- A modest allocation of a portfolio to gold acts as a diversifier and a truly non-correlated asset
- Gold is not subject to hacking or cyber warfare
- Gold is truly non-correlated
- There is a physical market for gold, regardless of what financial markets are doing
- Gold protects against sovereign risks such as rapid currency devaluations, examples Russian Ruble, Brazilian Real
- It’s a hard asset with no counterparty risk, and it has excellent liquidity compared to other hard assets, such as real estate. Gold has almost a 24-hour, very deep, and highly liquid market
- Criteria when evaluating vaulting jurisdictions
- Political stability, economic stability, rule of law, history of confiscations, precious metals industry infrastructure, strategic defenses
- Switzerland as a vaulting jurisdiction
- Long standing relationships in the precious metals industry in Switzerland
- Switzerland is the core of the precious metals industry, and is a solid foundation for liquidity globally
- Reasons for electing non-bank vaulting
- Rule of Law matters regarding gold as a financial asset or physical property
Learn more about Jim Rickards new book, The New Case for Gold at http://thenewcaseforgold.com/
You can follow Alex Stanczyk on Twitter @alexstanczyk
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