23/01/2025
Let’s Talk about Gold for a second…
The clear winner for the most superior form of money throughout history is gold. While I think silver will outperform gold in the next decade, I want to focus on gold for a second.
Why is gold at the top of the monetary food chain? There are a few reasons. For example, gold is virtually indestructible. Its chemical stability means that almost all of the gold ever mined still exists somewhere on the planet; in a vault, under mattresses and draws, and in the form of jewellery and artifacts.
Gold thus allowed human civilization to develop a longer time horizon orientation when it comes to storing value. Gold is also impossible to synthesise from other metals (sorry alchemists), and it is extremely rare in the earth’s crust. One of the more nuanced reasons why gold has been the most stable monetary metal throughout human history has to do with the connection between rarity and existing stockpiles.
For example, the typical stockpile of consumable commodities (like copper, or zinc, or nickel) is around 12 months of yearly production. Gold, on the other hand, thousands of years of production still exists as essentially stockpile which is orders of magnitudes larger than new annual production. This puts gold in a unique position, because even if prices rise stratospherically, any amount of effort to increase new mining production to meet new demand will be trivial relative to all the gold held by people and institutions.
Therefore, gold has the lowest price elasticity of supply and makes it the ideal inflation hedge and long-term sorter of wealth. Unlike currencies, which can be increased with the push a the “print” function on a printer, gold will hold its value no matter how much supply is increased.
Do you have enough gold in your portfolio?
Today, while stocks last, we are making 1/10 oz gold Krugerrands available at a reduced rate.
If silver is your choice this January, we've got you! You have two options.
Option 1: 1 kg bars from MetCon
Option 2: Silver Krugerrands
Visit our website https://www.silver-sphere.co.za/product/110-oz-krugerrand-bu-capsule/
