Bank-Held Gold: Gone When Needed Most

The highly acclaimed crypto market is undergoing a harsh correction, painfully demonstrating how quickly governments can put this asset class in distress. As we’ve repeatedly argued, crypto’s are not a wealth preservation asset. In the U.S. and globally, prices are rising at rates not seen in decades. Asset price inflation is now spreading to everyday goods as the velocity of money in circulation increases, in some cases exacerbated by artificially created shortages. It looks as if we have to prepare for shrinking economies and inflation. In this mix, more and more institutional investors are recognizing the need to diversify their portfolios with gold as a stable currency and inflation hedge. If they choose ETF’s for this, they put themselves in danger of having no precious metals in case of emergency. The Perth Mint’s problem should provide a cautionary tale for investors.

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