Physical Gold / Silver The Only Real Hedge

Physical Gold / Silver The Only Real Hedge by Rory for The Daily Coin

Having physical gold and physical silver close by makes a person feel better about themselves and feel better about those around them. If you don’t believe me take some physical gold and physical silver and carry it in your pocket or, at the very least, have a couple of pieces of physical gold / silver on your desk and watch what happens. Having gold, especially, close to your being will change you in ways that I can not explain.

We know that gold is money and silver is money, but for the most part we don’t really see these in the proper light – they have no counter party risk – no one can claim it but the owner! This must be the reason behind the “super-rich” hoarding gold for generations and telling us, the little people, that gold is a “barbarous relic“, “a pet rock” or that it is, in fact, “not money“. The thing is, every one of these quotes came from a “super-rich” person of privilege.

Gold and silver have had a great run in 2019 and we see this continuing into 2020 and 2021.

Over the last year, gold prices are up nearly 20%. The yellow metal is on pace for its best year since 2010.

In a note to clients published over the weekend, analysts at Goldman Sachs outlined why the strategic case for owning gold remains strong. The firm cites political uncertainty and recession fears that are unlikely to abate as primary catalysts, among other worries among the global elite like wealth taxes and increasing talk about MMT and central bank effectiveness.

By 2020, the firm thinks the price of gold will reach $1,600 an ounce; on Monday, gold was trading near $1,460.

But the firm also surfaces some really interesting data on how investors have expressed their desire to own gold. Which is that owning the physical metal seems to be the global elite’s preferred way to hedge against tail events.

“Since the end of 2016 the implied build in non-transparent gold investment has been much larger than the build in visible gold ETFs,” the firm writes, citing the chart below.

Trade data implies that gold in storage has increased far more rapidly than is reflected by financial market instruments, indicating a widespread preference for physical gold instead of gold-linked financial assets. (Source: Goldman Sachs)

In plain English, this means that for those including gold in their end-of-the-world trade, owning gold bullion is a must.

“This [data] is consistent with reports that vault demand globally is surging,” the firm writes.

“Political risks, in our view, help explain this because if an individual is trying to minimize the risks of sanctions or wealth taxes, then buying physical gold bars and storing them in a vault, where it is more difficult for governments to reach them, makes sense.” Source

All we know is we will continue stacking into 2020, 2021 and beyond. We have been explaining that the coming two years are going to reset gold and silver. The gains are going to blow people’s minds and once these new highs are established there will be looking bak.

Got physical in hand?

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The Daily Coin

Rory Hall, The Daily Coin. Beginning in 1987 Rory has written over 1,000 articles and produced more than 300 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Silver Doctors, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Shadow of Truth YouTube channels to enjoy original videos and some of the best economic, precious metals, geopolitical and preparedness news from around the world.