Why Precious Metals
For thousands of years, from 3rd Century Rome to 18th Century France or the John Law era of 1720, history teaches us lessons.
History specifically confirms that all empires, nations or regimes which find themselves at fatal debt levels eventually resort to the seductive (as well as desperate) call to devaluing their currency in an effort to counterfeit their way out of a debt crisis.
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The current era is no exception to natural market forces and such lessons of economic history. Despite years of spending and living beyond their means in an era of undeniable market euphoria and risk-asset inflation, governments and central banks around the world have put us at severe risk.
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Central banks have promulgated a fantasy that such artificial measures are sustainable. This includes the growing popularity of “unlimited QE” under economic theories like Modern Monetary Theory (MMT) which are wrongly presented as a viable and sustainable policy solution.
Rising Global Risk
Informed investors are acutely aware of the increasing economic headwinds impacting the preservation of their acquired wealth. Undeniable as well as unprecedented macro risks are now before us.
Greater than $260 trillion in global debt is artificially serviced by over $28 trillion in fiat currencies created by global central banks in the last two decades. Such debt levels and currency “solutions” are both alarming and clear.
Rising Market Volatility and Banking Risk
Equally clear is the ever-increasing market volatility which follows such extreme debt policies. These concerns, coupled with the operational risks facing a global banking sector exposed to a perilously overvalued derivatives market, are on the forefront of our thinking.
Historical Warning Signs
Our principals, like the sophisticated investors they serve, respect economic history and the lessons learned from centuries of policy makers attempting to solve one debt crisis after the next with more debt, all paid for via currency devaluation.
This is a fatal pattern whose core antidote has always been the prudent ownership of physical gold and silver. For more on these critical themes and the reasons for precious metal ownership, we invite you to click below.