precious metals

Why Precious Metals?

For centuries, commodities, especially gold, have represented in the eyes of many affluence and wealth. On the one hand they are stockpiled, particularly in the case of gold, as reserves of wealth, but on the other hand they have also been used to manufacture luxury goods, as well as being a medium of exchange.

Gold is Precious

Gold has always been a measure of value and an instrument for the preservation of value. In recognition of this, for many years paper money was tied to a fixed gold standard, because this secured a real and stable value to paper money. As time has shown, during times, such as these, of sustained monetary expansion, paper money tends to lose its purchasing power, and accordingly the role of money as a measure of value, as a medium of exchange and particularly as a store of value diminishes. There is no longer any guarantee or protection of the purported capital value of paper money, and subsequently it is increasingly no longer an adequate medium and measure of value, particularly for retirement planning purposes.

Countering the Erosion of Capital Value

Precious Metals represent inherent tangible value, and this value is best suited to withstand the increasingly apparent global tendencies to erode monetary value. They maintain their stable value and are not prone to sudden and sharp variations in value. Precious metals have a value in themselves and are – in contrast to paper money – debt free. Precious metals are therefore best suited to act as an inherent form of ‘insurance’ against the erosion of value