Gold is the ultimate form of wealth preservation. Throughout history gold is the only currency that has survived in its original form. All paper money systems in history have been printed away until the money becomes worthless. Already in 1729 Voltaire had said: “Paper money eventually returns to its intrinsic value – ZERO”
True Wealth Preservation Principles for owning gold
- Each gold bar is owned directly by the investor
- The investor receives a certificate of ownership with the unique serial numbers of his gold bars
- The gold is stored in specialised bullion vaults outside the banking system
- The investor has personal access to his gold
- The investor can physically withdraw all or part of his gold during office hours
- The investor can send a representative (e.g. accountant) to inspect the gold
- The gold is insured by a major international insurer
- Your investment is administered by the vault operators and by GoldSwitzerland which is part of the biggest independent asset management group in Switzerland with over Swiss Francs 5 billion under management.
There are many ways to invest in gold but none of the following fulfill our strict criteria of gold ownership based true wealth preservation principles:
- Exchange Traded Funds – An investment in a gold ETF is merely a piece of paper. Some of the biggest ETF’s are not even by backed by physical gold. It is not your personal gold and you have no access to the gold in case of a problem in the financial system.
- Futures, Unallocated Gold – These instruments are just paper gold and offer no real wealth protection.
- Allocated Gold – To have allocated gold in a bank means that you have specific bars that belong to you as long as the bank has an adequate stock and control system. However, you have no access to your gold and if the bank closes for whatever reason (bankruptcy, systemic failure, long bank holiday for restructuring the financial system) you can no longer control, let alone use your own gold.
- Bank Safe Deposit Box – As with allocated gold, you might not have access for a long time if the bank closes. Also, It is very difficult and costly to insure your gold.
- Storing gold at home – We consider this to be very high risk. Crime is increasing and will increase even further as the economy deteriorates. It is also very difficult to keep it a secret since most people will talk about their gold. More difficult and expensive to sell.
- Part or Mutual ownership – There are specialised companies where you can buy physically backed gold. However, you don’t actually own any individual bars, but rather just a (small) share in the total gold inventory of the company. You will not have direct access to your gold and thus cannot exercise any emergency control over your gold.
Virutally Risk Free
Although there is clearly no absolutely risk free method for buying and storing gold, GoldSwitzerland has created a system which surpasses virtually any other method and offers wealth preservation at the highest level.
GoldSwitzerland offers unique safety by enabling investors to purchase and store gold/silver bars in private non-bank bullion vaults in Zurich with personal access to their precious metals. Read more…
Matterhorn Asset Management and its gold division GoldSwitzerland are part of the biggest independent asset management group in Switzerland, the Aquila Group with over Swiss Francs 5 billion under management. Read more…