Protect your purchasing power In the world of paper money, central banks are printing it as fast as they can spend it, which is not only creating astronomical liabilities but is debasing our currencies, eroding our wealth, and diminishing our purchasing power through above-target inflation. Ownership of physical bullion is the traditional safety net against these threats, mainly because there is no counterparty risk and it becomes the ultimate store of value.
As for the benefits of holding physical bullion, the general outlook is that the continued excessively loose monetary policies of central banks will prolong the higher inflation rates due to currency devaluation. Ownership of gold and silver bullion represents a hedge against inflation, maintenance of purchasing power and insurance against economic uncertainty.
Private investors that go to a refinery wanting to refine their individual gold and silver items into bullion are faced with substantial refining and fabrication fees, known as ‘barring’ costs. Refineries also have minimum lot requirements and typically will not work with small quantities; if they do, considerable fees must be charged in order to cover their costs. Basically, it becomes extremely uneconomical for the individual investor, which is the main reasoning behind the GoldSwap concept which takes advantage of economies of scale. Lots are refined on a cumulative basis, which means the costs are reduced to a minimum and allows investors receive higher returns.
Diamonds may also be submitted in exchange for bullion. In partnership with The Diamond Certification Laboratory of Australia (DCLA), diamonds are assessed based on the 4C’s to determine quality, and the value is converted to bullion.
GoldSwap™ is also an important element of the environmentally friendly GoldWise program. To learn more, see GoldWise.
