• Gold: $ 1,282.41
      Silver: $ 15.43
      Platinum: $ 804.15
      Palladium: $ 1,356.92

    • Gold: $ 1,282.41
      Silver: $ 15.43
      Platinum: $ 804.15
      Palladium: $ 1,356.92

Precious Metals * Private Vaulting * Refinery

5 Advantages of Owning Physical Gold in 2015

5 Advantages of Owning Physical Gold in 2015

With gold prices reeling, some investors are second-guessing the investment appeal of owning the yellow metal. Although most gold enthusiasts would argue that low prices represent the perfect time to buy, some market participants are questioning whether gold’s bull market will ever return. Regardless of where you believe gold prices are headed in the near future, there are several practical reasons to invest in the precious metal in 2015. Below we look at just five of those reasons.

  1. Physical gold protects against currency devaluations

2015 has been an extremely volatile year in the currency markets. Monetary policy has stepped in to compensate for weak economic recoveries, and this has led to sharp fluctuations in global safe haven currencies like the euro, pound, yen and US dollar. Recall that earlier this year the euro experienced one of the most volatile days in history after the Swiss National Bank removed the peg on the euro-to-franc exchange rate. This single move put several currency brokers out of business. In this environment, buying gold can hedge against currency depreciation.

  1. Physical gold protects against a banking crisis

Since 2008 the idea of a banking crisis hasn’t appeared so far-fetched. In the United States alone, 465 banks failed between 2008 and 2012, according to the Federal Deposit Insurance Corporation. The European and Greek debt crises in 2011 and 2015 also reminded investors that bank accounts provide little guarantee of solvency. Owning physical gold and storing it in a safe offshore location can provide much needed protection in an increasingly volatile financial system.

  1. Physical gold safeguards private wealth against capital controls

Since the financial crisis, capital controls have become a reality in places like Cyprus and Greece. Several other countries have also placed or expanded restrictions in order to limit capital flight during times of distress (the People’s Bank of China is perhaps the most recent example of this). Restrictions on stock market activity, limits on cash withdrawals and negative interest rates on government bond yields have made it extremely difficult for investors to generate wealth. Holding physical gold in an offshore safe haven free from the meddling hands of central banks removes those restrictions. Offshore vaulting facilities like Byzantium also provide investors with immediate access to their precious metal for liquidation purposes.

  1. Physical gold has no counterparty risk

With global financial debt surpassing $100 trillion last year, financial assets like stocks, bonds and currencies have very high counterparty risk. In the simplest terms, this means the global financial system is extremely leveraged and highly sensitive to external shocks. Physical gold, on the other hand, is not a claim on anyone’s debt and has no counterparty risk, providing layers of security not available in other asset classes.

  1. Physical gold is a sound investment option in an aging bull market

With the bull market for stocks entering its sixth year, analysts are growing more convinced that we are in the tail end of the bull uptrend. Many of the world’s top investors are predicting a financial downturn as early as next year, and are citing 2015 volatility as a potential sign of things to come (recall that Q3 2015 was the worst quarter for stocks in at least four years). Although there’s no way to know for sure how this will play out, it’s becoming clearer that owning stocks doesn’t carry the same upside as it did in 2013. Physical gold provides one of the best hedges against volatility, and 2015 may be the best time to begin buying.

Click here to learn more about the advantages of physical gold buying in 2015.

Husni “Sam” B, Byzntium International Ltd SEZC

www.Byzantium.ky

O: +1 345-947-7000

OUR LOCATION

PO Box 2154, Grand Cayman, KY1-1105, Cayman Islands.

Email: info@byzantium.ky

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