First economic slowdown strategy

by | Jan 8, 2004 | Archives

Where do we go if the U.S. dollar really fails.   What is left?   What is the ultimate currency?    The prerequisites of a currency are durability, divisibility, desirability, portability, fungability and rarity.   Gold has these values more than almost any other element on earth.   So when currencies fail gold and other precious metals will prevail.   Invest some part of your portfolio in precious metals.   Keep some of these metals near at hand.

Gold is the most obvious and best known store of value.   However don't put everything in gold as there is great controversy whether it has a place in this generation as a store of wealth.   Gold prices would normally soar at times such as this.    However an article in The Economist outlined the fact that gold only rose 6% after September 11 and quickly gave back half this gain.   This could be in part to a 20 ton gold auction held by the Bank of England.   Some consider there is a conspiracy (in fact the Gold Anti-Trust Action Committee supports a lawsuit filed against Alan Greenspan and the Federal Reserve claiming that they have conspired to fix gold prices).    Others believe the supply of gold is just too large and demand too small.   The point is that the market does have dangers.

Whether such a conspiracy exists or if the supply currently outstrips demand, gold still has credentials that fights inflation.    A falling US dollar and currency turmoil could quickly change the supply-demand position.   Plus at its current price, the risks of gold falling much further are reduced.   The downside is that gold does not pay a dividend and if not held personally most types of gold ownership requires a storage fee.

One way to buy gold is at a Swiss or Austrian Bank and have them hold for you.   You can learn more from eClub advisors Anglo Irish Bank in Vienna.   Email: mavie@angloirishbank . or Swiss banker eClub advisor Andy Kaegi or you can learn how to hold gold at a very low costs with Perth Mint Certificates from Asset Strategies at

More on gold tomorrow and more on gold now at

Until then may all you investments be golden.