Benefits of holding physical Gold Bullion

In this video I explain the benefits of holding physical Gold Bullion

Introduction

Gold has played a central role in society for thousands of years. Gold has been used throughout history, and is directly responsible for the economic expansion and prosperity of numerous civilizations throughout history

1. Tangible with Inherent Value

Physical gold is real and tangible. It is indestructible, impossible to create artificially, and difficult to counterfeit. Mining physical gold is arduous and costly hence it has inherent value unlike paper money which is backed by nothing.

2. No Counterparty Risk

Physical gold has no counterparty risk. When you hold and own gold bars outright, there is no counterparty. In contrast, paper gold or e-gold (gold futures, gold certificates, gold-backed ETFs) all involve counterparty risk.

3. Scarcity

Gold deposits are relatively scarce across the world and difficult to mine and extract. New supply of physical gold is therefore limited and  this is reflected in golds value. Indeed We are said to be at max supply

4. Cannot be Debased

Gold cannot be debased, and gold supply is immune to political meddling.

Unlike fiat money which is constantly losing value via money printing quantitative easing and financial system bailouts.

5. A Store of Value

 Gold has far outlived all fiat currencies by thousands of year

Gold is is the ultimate store of value. Physical gold, in the form of gold bullion retains its purchasing power over long periods of time.

In contrast, fiat currencies such as the US Dollar are poor stores of value and their purchasing power is consistently eroded by inflation (rising prices)

Since the creation of the US Federal Reserve in 1913, the US dollar has lost over 98% of its value relative to gold.

7. Long- Term Inflation Hedge

Physical gold’s ability to retain its purchasing power over time is sometimes referred to as the “Golden Constant”.

This reflects the fact that gold’s purchasing power is constant over long periods of time

It’s the same gold as it has always been it’s just the FIAT currency you are exchanging it to that is fluctuating in value

1973

One gram of gold = 1.09 (today 36.00

lager 14p and milk 6p
one gram of gold from £1.09 – £36.77

beer one gram = 7 pints in 1973, today 12 pints
milk one gram = 18 pints in 1973 today 72 pints

Today one gram of gold has 33X more purchasing power than in 1973


lager 14p (7 pints) , pint of milk 6p (16) , gold £34 ( £1.09 per gram

today (lager = 3.00) (milk 50p – 2 pints) gold £1137 today – 3M £1139) 1g = £36.77

8. A 2500 Year Track Record as Money

Because of its ability to retain value and act as a store of value, physical gold has been used as money for over 2500 years.

It was only in August 1971 that the US famously suspended the Gold Standard meaning US dollars could not longer be exchanged for gold. 

This triggered the debt fueled expansion that is still having repercussions within today’s monetary system.

For 97% of the last 2500 years, gold has been used as money

9. Safe Haven (Insurance)


Physical gold acts as a safe haven asset in times of conflict, war and geopolitical turmoil.

Since physical gold does not have any counterparty risk, investors rush to gold during these periods so as to preserve their wealth

(US-China Trade Wars – Gold Up)

10. Liquidity and Universal Acceptance (Emergency Money)


Gold is universally accepted as money across the world, with the highly liquid global market always providing platforms to cash out

For example property can be challenging to sell in some markets and can be a long a complicated process whereas if you are in need of cashflow you can sell gold bullion one bar at a time and brokers will happily take if off your hands

Good for people who are asset rich and cash poor

11. Outside the Banking System

In the current era of global financial repression, physical gold is one of the few assets outside the financial system. Gold is not issued by any monetary authority or central bank or government. Because its not issued by any government or central bank, gold is independent of the banking system. Fully owned physical gold, if stored in a non-bank vault or held in one’s possession, is outside the banking system.

12. No Default Risk

Unlike a government bond, there is also no default risk with gold because it is not issued by any authority that could default.

Gold bars are no one else’s liability. Physical gold cannot go bankrupt or become insolvent. Therefore, there is no need to have to trust any other party when holding physical gold.

13. Diversification

Numerous studies by financial academics, as well as industry bodies, such as the World Gold Council, have validated gold’s role as a strategic portfolio diversifier. Optimal allocations to gold in multi-asset portfolios have found to be in the 5% to 10% range.

More recently cryptocurrency assets like Bitcoin are now considered in a similar way along with traditional digital assets like stocks, shares and bonds.

14. Currency Hedge

There is generally an inverse relationship between the gold price and the US dollar, in that the gold price generally moves in opposite directions to the US dollar. (Reserve Currency Failure)

Therefore, holding gold can act as a currency hedge of the US dollar, and help manage the currency risk of portfolios denominated in US dollars.

15. Central Banks hold Gold

The world’s central banks downplay the importance of gold because it competes with their fiat currencies, most central banks continue to hold substantial amounts of physical gold in vaults around the world.

They hold gold as a reserve asset on their balance sheets, and they value this gold at market prices.

Like private gold investors, central banks hold physical gold because it is highly liquid, it lacks counterparty risk, and because gold is a safe haven or ‘war chest’ asset that acts as a financial insurance in times of crisis.

Central banks also hold gold for when it re-emerges at the centre of a new monetary system, so that they will not be caught out having no gold.

16. Gold for Inheritance (Generational Wealth)

Gold Bullion can be a great form of inheritance for your children and family members.

Gold is real, tangible, valuable, and has a highly liquid trading market, it is an ideal asset for inter-generational wealth transfers.

Because physical gold is available in convenient weight denominations, such as troy ounces and gramss, it can be easily passed to recipients, in wills and trusts.

Our Gold supplier is ArgorHeraeus since 2008

24 karat., 999.9 fine

Good Delivery Gold

Strong Brand Prescence

One of 5 LBMA Referee Refiners

One of largest refiners in the world

Competitive Pricing, Wholesale +3%

Same pricing structure starting @ one gram up

Guaranteed Buy Back
FREE Storage

Storage is handled by Loomis International

Insurance by Fedex

Highly Liquid Markets



Leave a Reply

Your email address will not be published. Required fields are marked *