Why Choose Gold, Silver and Precious Metals as Wealth Protection Assets

The aftermath of the 2008 global economic crisis saw economic superpowers such as Japan, Sweden and Switzerland introducing Zero Interest Rate Policy (ZIRP) and Negative Interest Rate Policy (NIRP). With central banks cutting down interest rates to zero or below zero, commercial banks passed the lowered rates to their clients. As a result, more and more wealth builders started looking for alternative ways to store cash and protect their wealth.

Nevertheless, governments are concerned about the possible rise in illegal activities springing from people trying to work their way around this issue, with tax evasion being one of the principal concerns. For that reason, a growing number of institutions is trying to educate wealth builders on the legal ways to protect their wealth.

To avoid systemic risks and prevent yet another economic collapse that can result from an outburst of cash seizures, a number of actionable methods have been devised. These wealth protection hedges include: gold, silver and precious metals, offshore bank accounts, cryptocurrency, physical land, and second passports. Among the mentioned, holding gold, silver and precious metals is widely considered to be the most efficient way to secure financial stability.

World Gold Council has published data clearly showing that gold, silver and precious metals are universally favored as hedges against inflation, devalued currency, and a number of other global economic issues. Namely, it has been made public that central banks purchased a total of 336 tons of gold in 2014 alone, which revealed the nature of their plan to diversify foreign reserves. Furthermore, data shows that gold and silver bullion and coin demands have doubled in developed markets in 2016 compared to 2015.

In the case of the US dollar, this currency has lost more than 98% of its purchasing value in the past century, while gold has had an increase factor of 60 in the same period. If we further add the fact that cash seems to be losing its purchase value rapidly, holding gold instead of cash has more promise of a financially secure future.

Are there any Downsides?

When it comes to protecting your wealth by purchasing gold, silver and precious metals, the most obvious risk is not having a long-term asset protection strategy. These hedges will work only if all the details of auditing, storing, maintaining and servicing the purchased gold and silver bullion or precious metals have been laid out.

Additionally, choosing a trustworthy company offering these services is paramount. Silver Bullion is one of the most reputable companies serving wealth builders in Singapore, offering gold and silver bullion and coin sales in addition to the aforementioned services. The company strongly advocates transparency and educating the general public about how to safely store their non-financial assets.

Gold, Silver and Precious Metals as #1 Wealth Protection Assets in Singapore

Finally, for a non-financial asset to be considered actionable, it has to fulfill three key functions of money: it has to serve as an exchange medium, a value storage, and also provide account of economic transactions and valuations. Gold, silver and precious metals not only satisfy these criteria, but have additional benefits. Namely, they are finite, tangible, divisible and relatively scarce assets. When it comes to owning physical gold, there is zero counterparty default risk since this asset isn’t issued by a government or central bank

Nevertheless, placing your trust in these safe haven assets may backfire if you don’t get thoroughly informed and act accordingly. Simply purchasing tangible assets such as these doesn’t guarantee a future free of financial turmoil. In order to devise an airtight wealth protection strategy, you first need to account for protecting your non-financial assets.

Singapore has established itself as a go-to place for asset protection due to the exclusive local jurisdiction that provides isolation from Western nationalizations, escheatings or confiscations. Companies such as Silver Bullion were founded with an aim to leverage these jurisdictional protections. Choose a reliable partner that can eliminate counterparty default risk and enable you to protect your wealth with 'beyond all risk' insurance. By offering legal title ownership of authenticated physical gold and silver bullion and precious metals, Silver Bullion will prove to be just that.