Why (Physical) Gold?

WEALTH PRESERVATION

There are times in history when protecting your wealth should be the primary objective of your investment strategy. As Mark Twain said: ” I am more concerned about the return of my money than the return on my money”. To preserve wealth in a fragile financial system, involves investing in assets which have no counterparty risk.


Gold is not an investment, it is real money
Gold reflects governments ongoing deceitful action in destroying the value of paper money.

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Matterhorn Asset Management (MAM) has invested in physical gold for clients for over 10 years. Back in 2002 we advised our investors to buy physical gold for up to 50% of their financial assets. The image shows how in 1913 you could buy nearly 50 oz of gold for $1,000 and today only 0.75 oz. Thus against real money – GOLD – the dollar has declined 98% since the creation of the Federal Reserve Bank of New York in the USA in 1913. But it is not only the dollar that has declined in value, all major currencies have lost 97-99% against gold since 1913. Until 1971 the US dollar was backed by gold. Since Nixon abolished the gold backing, money printing started in earnest and in the last 41 years the dollar lost 98% in real terms.

An unstable financial system

An unstable financial system

The world financial system is more fragile than ever in history. Never before has there been a time when most major nations simultaneously are running massive deficits and creating debts in the trillions of dollars. The banking system is also virtually bankrupt. If the bank’s toxic debt was valued at market value, no bank would stand today. In addition the financial system has derivatives outstanding in excess of $1 quadrillion. An important percentage of these derivatives is worthless and there are no reserves to cover for the losses. The debts of governments and banks can never be repaid with normal money. Instead governments and central banks will need to create massive additional debt and print money at an accelerated rate. This will most certainly lead to a much higher gold price.

Very few investors own gold

Very few investors own gold

Gold 1913-2013

Gold has gone up almost seven times in US dollars in the last 13 years and still only 1% of world financial assets are invested in gold. Thus very few investors have participated in the major appreciation of gold. With the likely acceleration of money printing leading to further destruction of paper money, investors will realise the necessity of owning real money. Gold has been money for 5,000 years and maintained its purchasing power throughout history because it cannot be printed. Annual gold production of 2,600 tons represents only 1.5% of the total gold ever produced. Gold is both indestructible and divisible which makes it very suitable as money. In the next few years, it is likely that not only individual investors but also family offices, pension funds and other institutional investors will invest in physical gold for wealth protection and hedging purposes.

Informed investors no longer trust the paper gold markets

Informed investors no longer trust the paper gold markets.

Currently the paper market in gold is at least 100 times greater than the physical market. Many investors are under the illusion that they own gold when all they have is a piece of paper with no physical gold backing. Gold dealers such as Comex, the interbank market, futures markets, many gold Exchange Traded Funds (ETFs), derivatives market etc would have no possibility of delivering physical gold against their paper commitments (“See Wealth Preservation”).
Furthermore, it is unlikely that Central Banks own the 30,000 tons of gold they say they do. An important part of their stated holdings is likely to have been sold or leased to bullion banks. The US Government gold has not been audited since the 1950s and many other governments refuse to reveal in what country their gold is held. This is most likely because they don’t actually own the physical gold that is on their balance sheet. We will soon be at a point when investors in paper gold realise that they need to take physical delivery in order to have the certainty of owning gold and eliminating counterparty risk. When that time arrives, there will not be enough gold around at current prices. Gold is then likely to appreciate very substantially due to massive shortages of physical gold.


Why GoldSwitzerland – a comparison

Why GoldSwitzerland

Wealth preservation principles and services compared:
GoldSwitzerland Bank account/vault Gold ETF Mint Partial Gold ownership
Clients have immediate and complete control over their Gold/Silver bars and coins.
Clients receive a non-transferable warehouse receipt in their name issued by the vault.
Counterparty risk eliminated
Gold/Silver stored outside the banking system
Offers option to Trade and Store without any USA links or subsidiaries
Allocated & Segregated Gold/Silver bars in your name with your unique serial numbers
Inspect your physical Gold anytime at the vault
Immediately collect your personal Gold/Silver
Storage without initial purchase is possible
Lowest cost entry-exit
Swiss regulated group

The table shows how Matterhorn Asset Management/GoldSwitzerland compares with other examples of precious metals investment facilitators. GoldSwitzerland scores 100% on strict wealth preservation principles/services and has become the primary choice for many investors.


Wealth preservation – Unique Safety – Swiss Solidity

Wealth Preservation

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

YES

  • Each gold bar is directly owned by the investor
  • The investor receives a certificate of ownership with the unique serial numbers of his gold bars
  • Gold storage 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
  • Highly secure storage service by private Swiss, HK and Singapore independent and fully qualified vault operators

NO

  • Exchange Traded Funds – A gold ETF is more of a trading tool which mirrors the price of the underlying asset. Not all Gold ETF’s are fully backed by the metal
  • Futures, Unallocated Gold – A 100% derivative of the physical metal and used for speculative or short term hedging purposes
  • Bank allocated Gold – Allocated gold in a bank means that, on paper, specific bars belong to you only as long as the bank has adequate stock. You have no immediate access to your gold
  • Bank Safe Deposit Box – You are holding metals outside the Good Delivery chain which makes selling and insurance costly. In case of a longer bank holiday you will not have access
  • Storing gold at home – If sizeable this is a high risk solution and very difficult to move, insure or sell
  • Part or Mutual ownership – Owning a share in a bar does not give you full control and access in case of an emergency.

Virtually 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.


Unique Safety

GoldSwitzerland offers unique and ultimate safety by enabling investors to purchase and store gold & silver bars within bullion vaults in Zurich with total control over and personal access to their precious metals.
  • When you buy gold from GoldSwitzerland you receive the highest quality of gold (999.9 or 99.99% purity for 1 kilo and 100gr bars). 400oz bars are London Good Delivery.
  • Your gold is stored outside the banking system, outside of the Eurozone or a USDollar zone, allocated and segregated in your name.
  • One of the locations is within the compound of and underneath Zurich Airport.
  • The other specialized vault location is for UHNW individuals and sovereign wealth funds. This location is entirely self supporting for electricity, oxygen and water supply.
  • You own actual physical gold bars which are registered in your name, not an allocated fraction of a gold bar as with with other companies.
  • The gold is insured by a major international insurance company.
  • You are issued a signed Certificate of Ownership / Warehouse Receipt with the specific weights and serial numbers of your gold bars.
  • You (or a representative authorised by you) can inspect your gold, normally during office hours, by appointment. As this requires assistance from security staff a small fee will be charged by the vault for this service.
  • You can collect your gold from the vaults if you so wish.
  • In case of a disruption in the financial system, you have gold which is safely stored and which you can readily access yourself.

Swiss Solidity

Matterhorn Asset Management AG – (MAM) / GoldSwitzerland is a company specialising in asset management and consultancy for institutions, corporations and high net worth individuals, with particular emphasis on physical precious metals.

MAM is affiliated with one of the largest independent asset management groups in Switzerland, the Aquila Group.

Confidentiality

The client lists of MAM/GoldSwitzerland and the vault companies are totally confidential and no one outside these entities has access to investors’ details.

Neither MAM nor the vault companies are required to report investors’ precious metals to any authority in any country.

Swiss Financial Market Supervisory Authority (FINMA)

Our affiliated company, Aquila & Co AG, is regulated by the Swiss Financial Market Supervisory Authority (FINMA) as a Bank and Securities dealer.
The FINMA List of Authorised Bank and Securities dealers (PDF)
Matterhorn Asset Management is regulated, through Aquila & Co AG, by the Swiss Financial Market Supervisory Authority (FINMA) under their money laundering supervision.
The FINMA List of regulated supervised companies (PDF)

Accountants

PwC are the auditors of Matterhorn Asset Management AG and its Precious Metals Division GoldSwitzerland.


The 3 principles for safe storage of precious metals

Matterhorn Asset Management AG, Zurich
Tel: +41 44 213 62 45 - Fax: +41 43 456 97 11

©2015 GoldSwitzerland