Storing Gold

Central Banks are storing gold (record amounts) which should be telling us something? James Turk of GoldMoney.com talks with Lauren Lyster on RT about why he thinks Central Banks storing gold and are not waiting to find out if paper currencies are headed for a collapse

In the video featured James talks about how Governments have run out of money. And thus borrowing capacity meaning they cannot take on any more debt yet they continnue to that. History has taught us that this kind of action does not end well for paper money.

Storing Gold vs. Counter-party Risk

When it comes to precious metals James suggest (logically I might add) that people like you and I individuals would do well to take their queue from Central Banks. If the Banks are accumulating and storing Gold because it’s a safe haven, then doesn’t it make sense that we do the same ?

Storing gold and silver and other precious metals make sense as unlike stocks or currency are tangible asset without counter-party risk – meaning it is not reliant on a government’s promise but rather the value placed in it by the market. As always Mr Turk reminds us that Gold has been money for 5 thousand years and as such storing gold is a means to protect wealth.

Storing Gold – Central Banks

As people watch the price of silver and gold it’s easy to be disillusioned when storing gold. Simply because the price in dollars or sterling or whatever currency seems to be going nowhere.

Don’t be fooled ! James suggests we  don’t look at the price  but rather look at the value. If you compare an ounce of gold or silver today against a barrel of oil or wheat or land you will find precious metals remain under-valued today.

And this is the reason we should continue to be buying and storing gold

Lauren also quotes IMF data showing that Central Banks in Mexico, Russia, Turkey, Kazakstan are stocking up and storing gold.

To which James replies that “Every individual needs to act like its own Central Bank. And what that means is that you have to have your own Gold or Silver reserves. Own physical metal, and when you own that physical metal you know you are protected against all of the monetary chaos that we have already seen and the monetary chaos that is yet to come.”

You can read more about the Central Banks storing gold at the excellent Zero Hedge here

What do you think ? Some people are still on the fence about storing gold to protect their wealth.

We welcome comments below

Tagged as: james turk, lauren lyster, storing gold, storing silver, zerohedge