Unstoppable Drivers Will Reveal Best Kept Investment Secret
The world’s best kept investment secret is GOLD.
- Gold has gone up 7.5X this century
- Gold Compound annual return since 2000 is 9.2%
- Dow Jones Compound annual return since 2000 is 7.7% incl. reinvested dividends
So why are only 0.6% of global financial assets in gold?
The simple answer is that most investors don’t understand gold because governments suppress the virtues of gold.
GOVERNMENTS WILL ALWAYS LIE TO THEIR PEOPLE
Has anyone ever heard a Western government tell their people that gold is the best protection against their government’s total mismanagement of the economy and their currency?
Has any government ever told their people that throughout history all governments, without fail, have destroyed the total value of the people’s money?
That includes every single currency in history since no currency has ever survived.
And have current governments told their people that since 1971, their currencies have declined by 97% to 99%?
So why don’t governments tell their people that in the next 50-100 years their currency will lose another 97-100%?
Obviously, no government would ever be elected if they told their people the truth that the economy and their money will continue to be mismanaged and destroyed like it has throughout history.
And why don’t governments study history where they could learn from their predecessors mistakes?
And why don’t journalists study the history of money and educate the people?
The answer is obvious, journalism is just government propaganda and there is not a serious investigative journalist around today.
INVESTMENT MANAGEMENT INDUSTRY IN DENIAL.
In addition, the whole investment management industry neither understands nor likes gold.
Studying and understanding money doesn’t serve their purpose. Better to create a mystique around a mediocre industry that on average underperforms the market.
A greedy and self-serving investment management industry is not interested in gold. Gold doesn’t allow them to churn commission which is important for their survival.
This whole industry could be abolished with most investments being held in index funds and physical gold. The net performance would most probably be superior to a very and inefficient industry.
DRIVERS FOR GOLD
In the 12 minute video extract from a Palisade Radio interview below, I discuss the drivers for gold.
In summary the important drivers discussed which will soon propel gold to much higher levels are:
- Global deficits & debts – US, Europe, China, Japan, Emerging markets
- War
- Social unrest
- Gold buying by BRICS countries
- Central bank gold purchases of gold due to move from Dollar reserve assets to Gold
GOLD IS THE BEST WEALTH PRESERVATION ASSET THROUGHOUT HISTORY
- Gold is not an investment. It is nature’s money and thus the only money which has survived in history.
- Governments and Central Banks are Gold’s best friend. Throughout history they have without fail destroyed the value of Fiat money whilst Gold has for thousands of years maintained its purchasing power.
- As I discuss in the interview, risk is today greater globally than any time in history.
- Physical Gold is the ultimate protection against such risk.
- Gold for WEALTH PRESERVATION purposes must be held in physical form with direct access by the investor.
- Gold must obviously be held outside a fractured financial system. No use holding your gold in the system that you are protecting against.
- NEVER, EVER hold gold in paper form or ETFs.
- Gold must be held in a safe jurisdiction outside your country of residence and especially outside the US, Canada and the EU.
- Gold and Silver are not just for the wealthy. You can buy 10 grams for $70 or one ounce of silver for $25.
- With major bubbles in virtually all asset classes including stocks, bonds and property, the allocation to physical gold and some silver should be at least 25% of your financial assets and potentially much more.
NEVER worry about the gold price. Governments will continue to devalue your fiat money and thus revalue gold as they have throughout history.
Courtesy of VonGreyerz.gold
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