Why Buy Gold?
Gold has outperformed all major stockmarkets in the last 10 years The Dow Jones has declined 77% against Gold since 1999 with similar percentages against most European stockmarkets.
This outperformance in gold is likely to accelerate in the next few years with the target of another 95% fall in the dow/gold ratio, consequently gold will vastly outperform the stockmarket in the next few years.
There has been unprecedented demand for physical gold in the last few months. It is vertually impossible to get hold of gold coins or gold in smaller denominations in most countries. Thus while the gold price has been going down there has been record demand for physical gold. This is a sign of intervention in the future's market. This anomaly is likely to change soon. When buyers of gold futures on Comex demand delivery, there will be an explosion in the Gold price. Comex dose not have anywhere near sufficient stock to satisfy outstanding contracts.
In times of uncertainty gold represents real money and the only money that does not have a liability attached to it. Also gold can't be printed. This is why Gold is appreciating against all currencies.
In our opinion the real move in gold has not started yet. The problems out lined will push Gold substantially higher in the next few months and years.
Gold should not be bought in paper form (such as Exchange Traded Funds, Futures or in a bank as unallocated gold)
The only true form of wealth preservation is to acquire physical Gold, to own it in one's own name and to store it outside the banking system.
