by Egon von Greyerz
We are living in unprecedented times. The perceived prosperity that the world has enjoyed in the last 100 years and in particular the last 40 years is coming to an end. The debt based wealth that has been created is now at great risk of imploding both for nations and for individuals. Never before in history have most major nations been on the brink of bankruptcy. In addition, the world financial system is bankrupt and only still standing due to false valuations of banks’ toxic assets. The risk of sovereign or bank failures is major. It is therefore critical for investors to eliminate counterparty risk. Throughout history gold is the only currency that has survived and maintained its purchasing power. All other currencies have been printed to oblivion. Gold represents the best insurance against a fragile world financial system. But due to the fragility of the banks and the massive counterparty risk, investors must hold physical gold and store it securely outside the banking system. The mess in the world both politically, economically and financially is deteriorating at a rapid pace.