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Incrementum AG
In Gold we Trust 2015 – Extended Version
June 25th, 2015
http://www.incrementum.li/wp-content/uploads/2015/06/In_Gold_we_Trust_2015-Extended_Version.pdf
extract from the "conclusion".....
Gold has historically been the best hedge against such excessive inflationary efforts. Gold was and remains an outstanding pillar as a store of value and medium of exchange. These qualities are likely to be rediscovered if, or rather when, paper currencies suffer a general loss of confidence. Lengthy periods of rising price inflation and negative real interest rates are the main catalyst for such a loss of confidence.
The global race to debase currencies is progressing to the next round. It appears as though Japan has handed the baton to Europe now. The weak euro is likely to enter the history books as a Greek gift223. We are convinced that gold will emerge as the victor in this ongoing devaluation competition.
Below we list the most important arguments in favor of investing in gold: 224
► Global debt levels are currently 40% higher than in 2007
► The systemic desire for rising price inflation is increasing
► Opacity of the financial system – volume of outstanding derivatives by now at USD 700 trillion, the bulk of which consists of interest rate derivatives
► Concentration risk - “too big to fail” risks are significantly higher than in 2008
► Gold benefits from periods of deflation, rising rates of price inflation and systemic instability
► Gold is a financial asset that has no counterparty risk
