Protect Yourself Against Financial Catastrophe

What is currently happening in markets should be no surprise to investors who understand sound money and have been following our risk warnings in the last few years.

The world has been living in cloud cuckoo land for so long that unlimited credit at zero percent, hundreds of trillions of dollars of new credit and quadrillions in derivatives were all believed to be real money and assets and part of normality. In the last couple of days we can see how quickly euphoria changes to fear. The Dow went down over 500 points on Friday and started down over 1,000 points on Monday, the biggest one day fall ever. The Plunge Protection Team then managed to buy the Dow back up a loss of a hundred points. But they failed to hold it so the market fell almost 600 points by the close.

Any intervention here will be futile and temporary. Before we see the end of the biggest bubble in world history, the Dow and most markets will have gone down by at least 90%. This is what happens when an asset bubble basedThis brings us back to wealth preservation and insurance against imploding assets and all the risks around the world.

Physical gold will continue to serve as money as it has done for 5,000 years as currencies crumble and assets implode. But it is not just a must to hold physical gold. It is how and where it is held that is absolutely critical.

Let me set out a few of the criteria for owning gold:

1. It must be physical gold. Not paper of any form whether it is ETFs or futures.
2. Gold must be stored outside the banking system in the safest vaults in the world
3. Gold must be stored in countries with sound and stable political systems. Preferably it should not be stored in the investor’s country of residence
4. We consider the USA too high risk for storing gold including its neighbour Canada. The US is the most indebted country in the world and its banks have a dangerously high derivative positions of hundreds of trillions of dollars. Also the political system is not gold friendly. For the same reason gold should not be stored through companies based in the US even if the vault is located abroad

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