Why Gold?

WHY GOLD? Reviewing the Status Quo

The World Today

  • Interest Rate suppression will continue
  • Ongoing debasement of the US Dollar
  • Banks offer a return-free risk
  • Excessive government and corporate debt levels

What it Means for You

  • Adverse impact on portfolio returns
  • Insufficient wealth to sustain your standard of living during retirement

WHY GOLD? What Makes Gold Different

  • Gold is the only financial asset that is not someone else’s liability
  • The dollar is a small slice of the government’s debt
    • Banks are leveraged and loaded up with government bonds
    • Depositors suffered haircuts in Cyprus collapse
    • Bail-ins were adopted as the model for handling future bank failures
  • Real estate and fine art are not financial assets, and are illiquid even in a good market

WHY GOLD? Unique Physical and Economic Properties

  • Non-perishable, divisible, re-combinable, and fungible
  • High value density (150X more compact than silver)
  • Tightest bid-ask spread of any commodity
  • Highest ratio of inventories to annual production
  • Expensive to mine but not so rare
  • Constant marginal utility
    • The value of the next unit relative to the preceding unit of the good