Money Printing Gone Too Far

Sophisticated individuals, families and institutions recognise that record-high global debt levels accompanied by historically declining GDP growth rates represents a fractured financial system, whose global debt-to-income ratio is currently 3 to 1.

Such a disconnect between rising debt levels and stagnating GDP can only be sustained by equally record-high levels of global fiat currency creation (i.e. Quantitative Easing, or “money printing”).

Masking Reality with Fake Paper Money

Fabricated paper/electronic money rather than actual income from robust trade, manufacturing and sound corporate and political governance has been abusively used to mask these otherwise broken economic realities.

Global policy makers are effectively buying their own sovereign and corporate debt with money created from nothing.

A Dangerous Game

This is a dangerous game played throughout history, and one which, without exception, always ends badly for those who lacked the foresight to hold physical gold and silver as insurance against the declining purchasing power of their respective currency.

Too many pundits focus on a currency’s “relative” strength yet overlook the real question—namely its inherent purchasing power. Using the Euro and US Dollar as key examples, the decline of their purchasing power as measured against gold is not only self-evident, but increasing.

Extreme Currency Creation Results in Extreme Currency Devaluation

The staggering level of fiat money creation and zero-to-negative interest rate policies (effectively using debt to solve a debt crisis) seen since the Great Financial Crisis of 2008 is now beyond dispute. The direct impact such policies have had upon declining global currencies is, again, both self-evident and deeply concerning.

Our focus on wealth preservation therefore makes the ownership of precious metals an essential component of an informed portfolio. Although pleased when precious metals rise in price, our primary argument for gold and silver is, and always will be, as an insurance asset against evolving currency risk rather than just price appreciation.