-- Published: Friday, 8 April 2016 | Print | Disqus
The number one reason to buy gold bullion given the new risks in the 21st century digital age is “cyber financial warfare,” Jim Rickards, Chief Global Strategist at West Shore Funds told “Bloomberg Markets.”
The respected analyst and best selling author has just released his new book, ‘The New Case for Gold’ and discussed the risks that digital money and wealth pose to all investors and savers today. He also talks about the Federal Reserve, China’s gold buying strategy, why gold is safer and more liquid than stocks, bonds and cash and tells Scarlet Fu and Alix Steel why “gold is going to go to $10,000 per ounce”.
Rickards’ most important point and one we have been making for many months now (see here) is that today there are additional benefits of owning physical gold outside the financial system due to the real risks of hacking, cyber warfare and terrorism and the threats these pose to all forms of digital wealth – which is most wealth today.
“There are new reasons to have gold, which I talk about in the book, 21st century reasons. [Russian President] Vladimir Putin has a 6,000-member cyber brigade working night and day to destroy, disrupt and erase digital wealth. So how many billionaires do you say, ‘what do you have, stocks, bonds?’ No you don’t, you have electrons. Putin can wipe those out. The thing about gold, you can’t hack it, you can’t erase it, you can’t delete it. It’s tangible,” Rickards said.
Rickards does not mention silver. However, given silver bullion has similar qualities to gold bullion, a strong case can be made those who buy silver coins and bars, either in their possession or in allocated and segregated secure storage will also be protected from the increasing “digital wealth” risks of today.
The other important point that Rickards makes is that “paper gold is paper gold” and ETFs and futures are paper gold which can be defaulted on and therefore, it is vital you own physical coins and bars.
Read Cyber War Poses Risk of Bail-Ins to Banks and Deposits
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-- Published: Friday, 8 April 2016 | E-Mail | Print | Source: GoldSeek.com