For a host of disparate reasons – ranging from geopolitical tensions and currency wars to gargantuan unpayable debt and other macro-economic fundamentals – we believe the entire interconnected global economic, financial and monetary systems to be extremely fragile.
It seems certain to us that, at some point, policy makers’ ability to control the outcome of a particular shock will be wanting. History shows that crises usually spring from seemingly minor events. A correction in the stock markets – should it occur – may turn out to be a “cleansing” but it may also precipitate a larger, unforeseen crisis given the fragile state of the system.
Given the potential for such a serious crisis – and given the insane levels of debt now extant across the globe – physical gold stored outside of the banking system will perform its time-honored function of protecting wealth.
So concludes Mark O’Byrne in an article entitled It’s Time To Hold More Cash And Buy Gold (read the original unedited article in its entirety HERE) in reference to a note the Bank of America recently sent to clients in which it advised holding gold and paper currency at this time.
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