Why buy gold

  • Gold is a proven hedging instrument and safe haven asset. This is seen in recent academic research, in people’s experience and indeed throughout history.

    Precious metals have historically had a negative correlation to price movements in the financial markets and paper assets and bonds. They also have a negative correlation to the U.S. dollar as a currency. Many of our investment and pension portfolios are overweight equities and bonds and many are exposed to the dollar.

  • Gold is no one’s liability and cannot go insolvent. Gold is a centuries old finite medium of exchange and money and does represent any company’s and government’s liability or ability to repay. Every company and government in the world can go bust. Every stock and bond in the world can go to zero. Gold will always have a value. By owning gold in the safest way possible you reduce your counterparty risk.

  • Gold bullion markets trade continuously around the world and no determination of market value is required by an investor upon resale as the price is based on a live market price and therefore is not subjected to the opinion of a valuer, auctioneer or other vested interests.

    Bullion coins and bars can be sold automatically at any time unlike property which can remain on the market for many months or even years or sometimes cannot be sold at all. Indeed, many countries have experienced bank holidays and market closures which have rendered deposits and stocks illiquid for a period of time.

  • Gold is an asset that central banks are increasingly using to shore up confidence in increasingly debased and volatile fiat currencies as excessively loose monetary & fiscal policies cause monetary instability and currency devaluations.

    Fiat currencies have been competitively devalued since 2007 by many central banks.

    Paper currencies are set to be further devalued in the coming years. In a worst case scenario, they could eventually become worthless, resulting in people seeking out safe hard assets such as gold.

  • Precious metals protect against economic and geopolitical risks of terrorism and war.

    Gold, silver, platinum and palladium all experienced phenomenal gains during the oil crisis, geopolitical crises and stagflation of the 1970s.

    The price of gold rose from $35/oz to $ 850/oz which is an exceptional 2,400 % return. Meanwhile bonds collapsed in value as yields surged and stocks traded sideways for the decade despite very high inflation.

    Similarly, gold protected people during the recent global financial crisis and rose every single year from 2006 to 2013.

  • Reputable, well established, secure and highly regulated intermediaries such as the very highly rated and globally trusted Perth Mint of Western Australia exist for insured, long term storage. Secure storage is the way to go for investors do not feel secure enough to hold bullion in a private residence or safety deposit boxes of if their holdings are very large.

Why Buy Silver With The Perth Mint Certificates

  • Silver’s intrinsic value persists. It is considered a secure and affordable investment and has earned a place as an important diversification in the portfolios of many different types of investors. For example, Individual Retirement Account (IRA) participants may choose to include PMCP silver in their portfolios.

    Silver is a proven hedging instrument and safe haven asset. This is seen throughout history including in the 1970s stagflation and during the financial crisis of recent years.

    Precious metals have historically had a negative correlation to price movements in the financial markets and paper assets and bonds. They also have a negative correlation to the U.S. dollar as a currency. Many of our investment and pension portfolios are overweight equities and bonds and many are exposed to the dollar.

    Like gold, silver is part of the precious metals asset class, and can act as a hedge against inflation and a portfolio diversification technique to mitigate geo-political, monetary and systemic risks. Like gold, silver is a store of value and has retained its purchasing power over long periods of time.

    It has been shown in numerous academic studies, including by the highly-respected portfolio and asset allocation experts, Ibbotson and Associates, in a June 2005 study, ‘Portfolio Diversification with Gold, Silver and Platinum’, how silver and other precious metals are the only one of the seven asset classes with a negative average correlation to other asset classes.

    It is also worth noting that the authors showed that, excluding cash, precious metals are the only asset class with a positive correlation coefficient with inflation, which is further evidence that precious metals act as a hedge not just against macroeconomic and systemic risk but also against the long term threat of inflation.

    The Ibbotson study wrote that “The three metals were chosen because gold and silver are often viewed as a safe harbor in times of crisis. Conversely, during economic expansion demand for silver and platinum is thought to increase.”

    According to Ibbotson Associates, precious metals are the most positively-correlated asset class to inflation. From a strategic point of view, Ibbotson determined that portfolios could reduce risks and improve returns with a 7-15% allocation to gold, silver and platinum.

     

  • Gold and silver are centuries old finite mediums of exchange and money that do not represent any company’s and government’s liability or ability to repay. Every company and government in the world can go bust. Every stock and bond in the world can go to zero. Silver will always have a value and by owning silver in the safest way possible you reduce your counterparty risk. Silver is no one’s liability and cannot go insolvent.

  • Silver bullion markets trade continuously around the world and no determination of market value is required by an investor upon resale as the price is based on a live market price and therefore is not subjected to the opinion of a valuer, auctioneer or other vested interests.

    Bullion coins and bars can be sold automatically at anytime unlike property which can remain on the market for many months or even years or sometimes cannot be sold at all. Indeed, many countries have experienced bank holidays and market closures which have rendered deposits and indeed stocks illiquid for a period of time.

  • Silver has protected purchasing power throughout history.

    Silver is widely perceived to be both a commodity and a form of money, and it has been used as a medium of exchange for thousands of years due to its inherent value.

    Milton Friedman said that the “major monetary metal throughout history is silver, not gold.”

    Fiat currencies have been competitively devalued since 2007 by many central banks.

    Paper currencies are set to be further devalued in the coming years. In a worst case scenario, they could eventually become worthless resulting in people seeking out safe hard assets such as silver and an attendant surge in price.

  • Silver experienced phenomenal gains during the oil crisis, geopolitical crises and stagflation of the 1970s. Gold surged 2,400% during the period but silver surged by 3,000% – from $1.63 per ounce to over $50 per ounce.

    The price of silver rose from below $1.40/oz to $50/oz. Meanwhile bonds collapsed in value as yields surged and stocks traded sideways for the decade despite very high inflation.

  • Reputable, well established, secure and highly-regulated intermediaries such as the very highly rated and globally trusted Perth Mint exist for insured, long term storage of silver. Secure silver storage is the way to go for investors do not feel secure enough to hold silver coins and bars in a private residence or safety deposit boxes of if their holding are very large.

Why Perth Mint Certificates