Our Investment Philosophy

At a time when governments worldwide have adopted fiat paper currencies and then debased them to finance reckless spending, precious metals remain the only honest and accountable form of money.

Gold and silver have served as a store of value and unit of exchange since the dawn of civilization due to their inherent properties: rarity, durability, fungibility, divisibility, and portability.

Paper Currencies Increasingly Shaky

We believe the US dollar, the world’s reserve currency, is facing collapse, and there is no strong candidate to replace it. The euro, the only other currency with enough liquidity and financial backing to challenge the dollar, now looks very fragile. China, soon to be the world’s largest economy, does not even allow its currency to trade freely in global markets.

In this scenario, only gold is considered a true safe-haven asset. Foreign central banks have already switched from being net-sellers to net-buyers of gold. We believe we are witnessing nothing short of the re-monetization of precious metals.

A Failed Experiment

Many investors are shocked to consider a return of gold as money. However, it is actually the fiat era that is unusual. The period since 1971, when Nixon closed the gold window, is the only time in human history that currency has not been backed by precious metals. This was not progress, but in fact the result of a series of geopolitical events – namely the historic stability of the (gold-backed) US dollar and the dominance of the US after World War II.

The reason a fiat system was never attempted before is that it would give too much power to whatever group was able to control the printing presses. The US seized that power, and now its abuse of it is driving the global economy into a colossal crisis.

The Global Debt Bomb

The Western world is now facing unprecedented levels of sovereign debt. The worst nations — including Greece, Spain, the UK, and the US — have funded and unfunded liabilities greater than the yearly output of their entire economies. These governments have assumed debts and made promises they simply cannot afford.

When the major banks faced bankruptcy in 2008, Washington bailed them out; but Washington is also bankrupt, and it is bailing itself out in a way that few even notice. Since our ailing economy can hardly afford more tax hikes, and politicians can’t risk cutting entitlements, the federal government is undergoing an inflationary bailout.

Washington is simply printing more and more dollars. This allows it to pay back its bonds with cheaper and cheaper dollars, until its creditors receive the nominal value printed on the front of their bonds. This does not erase the debt, but rather pays it back by stealing purchasing power from every investor, worker, and saver with dollar-denominated assets.

The worst part is that nearly every wealthy Western country in the world is mired in debt, and each one is devaluing its currency along with the US. It’s a race to the bottom, and many conservative investors feel there is no safe place to turn. But history provides us with a safe haven from all government paper — gold.

The Ultimate Insurance Policy

Unfettered access to portable wealth, which is not subject to confiscation, registration, or unwarranted intrusion by government authorities, is the ultimate insurance policy. Physical gold and silver, being the most well-recognized and dependable forms of money throughout history, should be the core of any well-balanced portfolio.