Final Catastrophe Of The Currency System

Sadly, things have now gone too far to stop the inevitable currency collapse and implosion

of the financial system but that doesn’t mean that it is too late for individuals to protect themselves. As we enter this final phase, there will be panic in financial markets with governments and central banks taking draconian measures. Below are some of the potential risks that all investors must protect themselves against today:

• Currency collapse –  leading to destruction of capital
• Capital controls – making it impossible to take money out of bank or country
• Bail-ins – the bank will steal your money in order to try to save itself
• Forced investments – compulsory purchase of treasuries with your bank or pension assets
• Custodial risk –  stocks and bonds will be hypothecated by the bank, leaving you nothing
• Bank failures – all your investments will disappear as the bank becomes insolvent

The above list in not exhaustive but it contains the most likely events that will take place in the next few years. Most private investors don’t see these risks and have zero protection against them. And professional money managers haven’t got a clue about real risk, nor do they see any need for protection or insurance. When you manage OPM (Other People’s Money), you take maximum risk in order to benefit from the upside. The downside is not your risk and thus it can be ignored. This strategy works extremely well until the music stops. But as long as money printing and credit creation inflates markets, these professionals will never spend a second worrying about the total destruction of clients’ money.

The best and cheapest insurance against the risks outlined above is to hold physical gold and silver. But it is not enough just to own gold and silver but just as important how they are held. It is a sine qua non to hold metals in physical form, outside the financial system and outside your country of residence. It is also critical to have direct access to your wealth preservation asset which should not be held through a counterparty. 

Gold and silver will not protect investors against all the problems that the world will experience in coming years. But if they are held in the right way and place, precious metals will be the best insurance against the massive wealth destruction that will take place in the next few years.

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