What Makes Bullion Different?
Learn why increasingly governments (and their central bank partners), private investors, and wealthy dynastic families have always owned and placed an allocation of their wealth into physical bullion (gold, silver, and more recently now platinum and palladium as well).
How is bullion different from other asset classes?
(e.g. physical gold, platinum, palladium, silver bullion)
Physical precious metal bullion products are one of the lone investment vehicles or assets one can own without the risk of other parties failing or under-performing on promises made.
Nearly all equities, bonds, fiat currencies, crypto currencies, and even most forms of real estate require the performance of others or their infrastructure for value.
Conversely physical bullion products made with investment grade gold, palladium, platinum, or silver do not rely on someone fulfilling a duty to maintain their values.
Physical bullion is by its inherent nature precious and fully protected from bankruptcy and thus bullion as always able to retain its value amongst future investors yet born.
Precious metal coins, rounds, and bars have and will remain inherently valuable given the special respective properties each precious metal fundamentally possesses.
Although some may claim bullion has no counter party risk, this is not technically true.
Outright theft or physical seizure could certainly be classified as a risk posed by other parties. Further along in this book we will discuss various methodologies and means to lesson, insure against, and most likely avoid this ever present threat.
Bullion in hand is also one of the most private assets you can own outright today. It is difficult to locate, track, and trace. Both bullion buying and selling privacy nuances will also be discussed in later chapters of this book. Of course with any capital gains or losses you make when buying or selling bullion, consult a tax professional on the matter.
Bullion is not simply great wealth defense, it can also save an investment portfolio from failing while other asset classes and financial sectors like equities or bonds are falling. We will discuss backtested bullion allocation studies from 1968 through 2016 shortly.
On a macro economic and historical basis, bullion typically does the real accounting currently being delayed by cash based accounting governments ( e.g. USA ) and mark to model financial institutions (e.g. large perhaps insolvent commercial banks) who have resisted doing so, yet.
Bullion historically increases its buying power when insolvent governments, companies, family estates, and debts are finally rectified and marked down to their true real market values.
Born in exploding stars, physical bullion has outlasted and withstood any financial market crashes the world has ever seen or is likely to experience ahead. Bullion is the asset class that truly survives and outlives all others.