After the structural problems of the global economy were not fixed in 2008, the problems were simply patched up and pushed further down the road. However, this time around central banks don’t have the luxury of lowering interest rates by a great deal as they played that hand in 2008. This leaves only one route that the central banks can conceivably go down: fiscal stimulus, and my goodness how have they embraced it. With the dollar heading over a cliff, we may well be set for the next collapse in the global banking system. HNWI and institutional investors are rightly concerned and many are looking at options to preserve their wealth. Storing wealth in the form of gold in a safe and stable jurisdiction has time and time again proved to be the ultimate method of long-term wealth preservation. The VAULTALP Switzerland Gold Vault Storage service can help you preserve your wealth well into the future.
The global banking system has collapsed in 1914, 1939, and 1971….is 2020 next?
With the reckless actions of the Federal Reserve and other central banks in response to the coronavirus crisis, every new dollar being printed is devaluing the currency further and further. The Fed balance sheet has expanded a staggering 57% from $4.2 trillion at the start of March this year to $6.6 trillion today. Forecasts indicate it could reach $10 trillion by early next year.
Added to the negative effects of the Fed balance sheet growth comes a devastating shock in oil prices. With oil prices currently well below break-even for practically all oil producing countries, defaults and possible state failures are looking more and more likely. Not only are Venezuela and Iran on the brink, other countries in the Arab Gulf, Africa, and South America are unable to survive with current oil prices. Massive defaults and bankruptcies are expected in the US shale sector also.
The systemic risks associated with reckless financial mismanagement by central banks and the financial shock of state defaults can’t be ignored.
How can I protect myself from a banking collapse?
With the fate of the US Dollar seemingly sealed, smart investors are turning to gold to preserve their wealth for the long term. Just before the last collapse in 1971, an average house could be bought with the equivalent of 300 ounces of gold. Today the same house can be bought with 170 ounces of gold. Imagine how much in Dollar or Euro terms a house price has changed from 1971 to today! That is the power of gold as a tool for wealth preservation.
The VAULTALP Switzerland Gold Vault Storage service allows our clients to buy gold with crypto or fiat currencies, and to store it in our ultra-secure alpine vault. Each individual bar serial number is registered to each specific client, ensuring full title and ownership is clearly defined. Clients are welcome to visit our vault to inspect their gold, and they are also free to personally collect their gold with prior arrangement. Additionally, clients can sell their gold back to us, or use our special exchange service that enables our clients to exchange their gold directly for crypto.
Now is the time to take action to preserve your wealth for the long term.