Why the Rich are Running to Gold Bullion

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It’s interesting (even rewarding) to see that the mainstream media is beginning to say some of the things we have been telling our readers for years. For example, an article in The Daily Telegraph of London exclaims that,

Merrill Lynch has revealed that some of its richest clients are so alarmed by the state of the financial system and signs of political instability around the world that they are now insisting on the purchase of gold bars, shunning derivatives or “paper” proxies.

Gary Dugan, the chief investment officer for the US bank, is quoted in the Telegraph article as saying that clients are “genuinely worried about what the world is going to look like in 2009. It is amazing how many clients want physical gold, not ETFs. They are so worried they want a portable asset in their house. I never thought I would be getting calls from clients saying they want a box of krugerrands,” he said.

Merrill Lynch has predicted that gold will soon surpass its all time-high of $1,030 an ounce, reaching $1,150 by June.

If deflation sets in and rocks the economic system, gold will serve as a safe-haven, explains Telegraph journalist Ambrose Evans-Pritchard. With the opposite scenario, if massive monetary stimulus sets off inflation, gold will also come into its own, as a store of value. “It’s win-win either way,” says Merrill’s Mr Dugan.

They further warned that the eurozone was likely to come under strain this year as slump deepens. “There is going to be friction as governments in the south start talking politically about coming out of the euro. I don’t see the tensions in Greece as a one-off. It is a sign of social strain in countries that have lost competitiveness.” This echoes what we have been saying for years… we would just add that the pound sterling (see my other article about the Bank of England’s new license to print money) and the US dollar look equally doomed.

Gold may be the only answer, and indeed should make up a substantial portion of any diversified investment portfolio. And I would again stress that you should be buying physical gold bullion, not exchange traded funds, gold certificates etc. Buying physical gold has actually become quite difficult of late, with long waiting lists and high premiums. But fear not – your intrepid Q Wealth Offshore Banking team are putting the final touches now to “The Gold Report” which will explain several exciting new strategies for bypassing the gold and banking cartel altogether, acquiring pure gold bullion at a reasonable price, which you then hold in a secure offshore safe deposit box to which only you or your chosen representatives hold the key. Watch this space for more details.

Additional note from the editor: While you are waiting for “The Gold Report” you might also enjoy our brand new five part intensive offshore course, covering topics like offshore banking, asset protection, estate planning and trusts by our very own Peter Macfarlane, plus excellent articles by Thomas Bolther and Richard Cawte with practical solutions for building wealth into the future. The question is “How do you achieve the lifestyle of complete freedom without having the first $1,000,000 in the bank?” The answers you will find in this new five part intensive course, appropriately named “Secrets of the Super Rich.” Oh and did I tell you the best thing about this course? It’s free! Sign up right now online over at QWealthReport.com

8 thoughts on “Why the Rich are Running to Gold Bullion”

  1. The money that was created by the Federal Reserve was used to pay out derivative payments. The money that the banks are hording is what the government gave them to make loans.

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  2. You can buy one gold coin at a time and build your pool of wealth preserving gold coins up over time if you haven't got much spare cash to invest right now.

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  3. Indeed, it’s essential to preserve your wealth during time of crisis – fiat money is prone to devaluation and in history precious metals have always won the battle against fiat currencies that had no real backing.
    The current correction in gold’s and silver’s price can be a great opportunity to buy more of the metals.

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