First Tier Asset, constant increase in Value

Why you should store Precious Metals.

For millennia, gold and silver are considered safe havens in times of crisis. Anyone who has acquired a lump of precious metal around 50 years ago is still pleased to have made a valuable investment decision today. An investment in bank accounts or supposedly safe government bonds, however, has repeatedly led to almost complete bankruptcy in this period.

Gold and his little brother Silber have proved themselves several times as an inflation-protected investment. In view of the turbulent economic situation and, in particular, the outlook for the future, they are becoming more and more the focus of investors.

First Tier Asset Status

Under Basel II rules Gold was treated as either Tier 1 or Tier 3 capital, since the BCBS stipulated that “at national discretion, gold bullion held in own vaults or on an allocated basis to the extent backed by bullion liabilities can be treated as cash and therefore risk-weighted at 0%.”

Inflation protected

Many investors are drawn to gold’s role as a diversifier – due to its low correlation to most mainstream assets – and as a hedge against systemic risk and strong stock market pullbacks. Some use it as a store of wealth and as an inflation and currency hedge.

A source of Return

The price of Gold has increased by an average of 10% per year since 1971 when gold began to be freely traded following the collapse of Bretton Woods. And gold’s long-term returns have been comparable to stocks and higher than bonds or commodities.