Global Economic Risks Impacting the Preservation of Acquired Wealth
Informed investors are aware of the many economic risks impacting the preservation of their acquired wealth. Such risks include, but are not limited to
Global Spiralling Debt
There has been more than $260 trillion in global debt which has been 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 alarming. Global policy makers are effectively buying their own sovereign and corporate debt with money created from nothing.
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This is a dangerous game played throughout history, and one which, without exception, always ends badly for those who lacked the foresight to hold physical gold and silver as insurance against the declining purchasing power of their respective currency.
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Economic history shows 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. The only real solution has always been the prudent ownership of physical Gold and Silver.
Global Banking System Volatility
The ever-increasing market volatility, the operational risks of extreme debt policies and the overvalued derivatives market expose the global banking sector to alarmingly high risks and downfalls.
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Sophisticated investors recognise the direct correlation between extreme monetary policy (i.e. money printing and rate suppression) and the simultaneous rise in stock and bond valuations.
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Such central-bank-supported market highs are not only misleading and unsustainable; they ultimately lead to increased price swings and huge market volatility against which precious metals have consistently served as a reliable buffer in the past as well as present.
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Despite years of central bank support and headline-making bailouts, private commercial banks face a myriad of operational and structural risks. Forefront among these risks is bank exposure to a now irrationally over-valued derivatives market. The notional value of this market is likely greater than a quadrillion-dollars. Banks face massive counter-party and concentration risk in this inflated sector.
Unstable Credit Markets
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Stocks follow money printers.
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Credit markets across the globe have become grossly over-bought (and over-valued), thereby sending/compressing bond yields to the basement of history and thus rendering bond assets far riskier than their traditional profile as a volatility buffer.