Why invest in physical Gold ?

- Gold is the only form of money that has not been destroyed throughout 5000 years of history.

- Gold is becoming again Money : For 2000 years, money was made of gold and silver coins. Since 1971 and the end of the Gold exchange standard by President Nixon, we are living a monteray experience of paper money. As all previous experience in the past this experience will fail.

- Gold is undervalued : adjusted from the real rate of inflation (not the one published in the media) gold should be much hight, some say around 10 000 dollars to take into account the trillions of dollars that have been printed since 2008. The Dow/Gold ratio is a good indicator of the fact that gold in undervalued.

- The end of the dollar as the world reserve currency is unavoidable. In view of the inflationist monetary policies of all the governments the purchasing power of the dollar is destroyed. Countries with big dollars reserves know that and are literally fleeing the dollar and investing in tangible assets to protect themselves.

- Other international money (euro, yen, swiss franc) are no alternatives. All these currencies as based on “paper money” and follow the same long term fate as the US dollar which is going back to its intrinsic value of zero.

- The true impact of the derivatives has not yet been experienced. Warren Buffet called the derivatives “weapons of mass destruction” and it the coming years this market will implode trigerring domino effect that in turn will destroy our monetary system based on fiat money.

- Investment demand from investors is just starting to rise. Few people own gold today so it’s impossible to speak of a gold “bubble” when this asset is under owned.

- Investors are realizing that Gold ETF are not the same heaven it is supposed to be. Gold ETF are not backed by 100% physical Gold. Owning Gold ETF shares doesn’t necessarily mean investors own physical gold. ONLY invest in Physical gold.

- The production of gold by mining companies can’t rise, the credit crunch made structural investments impossible and gold is becoming harder to mint. So the offer of physical gold is stable and thus not pushing the price down.

- Central banks are not selling gold any more. To the contrary a lot of Eastern and middle East central banks are actively buying gold in order to limit their exposure to the devalutation of their dollars and euros reserve.
The gold market is very small. All the gold ever produced during history represent a 20m square block.
Gold has proved during centuries its capacity to hold value and to protect against inflation.