Gold & Silver Remove Third Party Risk Like Knight Capital

It’s perhaps not so astonishing to see another financial firm blow up in a matter of a couple of days with Knight Capital reporting a $440 million loss due to a software malfunction. But this is a reminder just why holding physical gold and silver in your portfolio is a good idea right now.

The value of precious metals does fluctuate daily but it will always be there because you do not have a third party between you and your wealth. Gold and silver are money in its purest form.

Third Party Risk

Nobody is going to ring you up to announce the bad news that your money has gone, unless you leave your safe open for some burglar to steal it. Yet that is exactly what you do with third party risk in financial firms in times of crisis.

Not only does it make sense to keep some of your assets outside of the financial system when that same system is malfunctioning so badly, but is it not obvious the you will not be alone in thinking this.

You and millions of others are thinking about buying precious metals for precisely the same reasons. And when you all actually do so then the demand for gold and silver will go up and so will the price.

Read more: ResourceInvestor.com, 8 August 2012