But investors should not really be
concerned. Gold will continue to reflect the escalating deficits and the
never-ending money printing by governments.
In the next few years, many institutions will fail. And it always happens totally unexpectedly. This is why it is absolutely critical to preserve wealth by holding major assets outside of the financial system. Major fortunes will be lost and it will be a question of who loses the least. One of the few assets that will continue to reflect the destruction of paper money is gold. But it must be physical gold only stored outside the banking system in the name of the investor with personal access to the gold.
Switzerland now has two gold initiatives. One of them is to create a Gold Franc which will be accepted as legal tender in parallel with the paper franc. Switzerland has a long-standing tradition in gold both from the point of view of private ownership and refining of gold. Four of the top six refiners in the world are Swiss. This gold tradition makes it more probable that this initiative is passed by parliament. Initial soundings are positive. If gold is accepted as a parallel currency, this would eliminate any small risk of confiscation of gold in the future in Switzerland.