Unlike bond and equity market investments, when you own and hold physical gold and physical silver there is no counterparty risk. This is because there is no counterparty. Contrast this to a government or corporate bond where the issuer is your counterparty and to an ETF or equity brokerage account where there are many counterparties in trusts, nominee accounts, and the settlement and clearing chain.
Likewise, there is no default risk with gold and silver, because with physical gold and silver there is no issuing entity which could go bankrupt or that can default. In contrast, in bond and equity market investments, all of the entities can default. The same is true of money market and savings accounts with banks. With cash deposits and savings balances, the commercial banking sector is your counterparty and banks can and do default. With the global shift to a bail-in regime, depositors are now at risk of being bailed-in in the event of commercial bank defaults. Investment gold and silver bars and coins are tangible assets produced from mining and refining that exist in limited supply. They are not brought into existence by monetary authorities, governments or central banks, and gold and silver are not subject to political interference or dilution to their supplies. Physical gold and silver exist outside the banking system, and outside the financial system. Physical gold and silver are a form of financial insurance against the collapse of the financial system. As the global financial system continues to lurk from crisis to crisis while being continually propped up by QE, negative interest rates and fiscal stimulus, owning physical investment precious metals is now more important than ever.
0 Comments
Leave a Reply. |
Thank you for choosing to make a difference through your donation. We appreciate your support.
This website uses marketing and tracking technologies. Opting out of this will opt you out of all cookies, except for those needed to run the website. Note that some products may not work as well without tracking cookies. Opt Out of CookiesCategories
All
Archives
April 2024
|