To avoid the risk of default is why you should get outright physical ownership of gold. After all, it would be so much easier to offer you a gold account...Should you choose to own gold outright, when you invest in gold, you Avoid The Risk Of Default and Swimming Naked...
One of the patterns which recur throughout history is that growing financial sophistication leads to widespread expansion of credit and exposure to default, and few people successfully avoid it when it matters.
Banks, pension savings, mortgage guarantors and all the major financial institutions on which we depend on are now tied up in a web of undelivered assets.
A is the registered owner of a bond payable by B, the principal on which has been credit-swapped out to C. The terms are controlled by a deed drafted by an investment bank D, which itself receives the interest, which has been aggregated with 30 others and sold notionally to E.
E is foreign and flattens the FX risk with a bank F, who sells and rolls a future on his long currency book, which is bought by another bank for an assured profit by running the position against a higher yield bond bought from a junk-status borrowing customer, which has been insured against the risk of default with G, a major insurer, who happens also to be A.
These are the styles of relationships that dominate the world in which ordinary peoples' savings are bound up, and they are profitable in the short term.
This is why financial rather than commercial companies increasingly dominate the list of the top companies in America and Europe. They find it easier to make profits by providing credit and assuming eventual repayment, rather than by demanding settlement; a habit that could put off no end of potential customers.
All our common savings products are bound up in these spider-webs. We do not know when and where these webs will break, and with the greatest possible respect, we don't think you do either.
What is certain, is that they will eventually break, and at an unexpected place and time, and this why we believe every forward-thinking person with a respectable private reserve would do well to consider allocating at least part of their savings in gold investment and take physical ownership in the form of solid gold investment. It just makes sense.
Investing in Gold Jewelry is one good way to do this. Gold accounts, indexes, spread bets, and futures all fail to extricate the buyer from the web of dependencies because they are based on undelivered gold. Bitcoin, a form of digital currency that falls within an expanding category of money known as cryptocurrency remains an undelivered asset.
Opt-out of the financial dependency web; take ownership of physical property outright. And finally, you can't wear gold shares, certificates or bitcoin! Another good reason why you should get outright physical ownership of gold!
Resources: Paul Tustain,
"One of the things I realized in losing first my mom and then both of my husband's parents, is that you are left with a box of treasures that's the closest thing you have to them. When we went through my mom's things and my mother-in-law's things, we found these boxes of trinkets (Jewelry). Not all of them were expensive, but all of them carried memories of them wearing this piece or that." JCK Special Report: Jane Seymour on Jewelry
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