15 September 2014

The Secret to Physical Gold Ownership and Why People do Not Sell

The gold and silver markets have been moving sideways for quite some time. And naturally every time when the expectation of an investment does not turn out one double-checks the underlying fundamentals to decide whether to hold or sell the investment.

I do not personally know all of the gold dealers in Europe but the ones I‘m talking to turnover around 2.5 billion in gold and silver every year plus our CelticGold business. Because of this I can see where the trend is.

High Level of Gold, Silver and Financial Education 

The one common aspect amongst the CelticGold customers I talk to is the high level of financial education. This education helps the individual investor to navigate through the daily flood of news and mis-information.

Massive Educational Development

I would like to tell a little story. I was invited by a friend to his seminar in Las Vegas in August 2009 to toDa 45 minute gold presentation. I asked the 440 participants how many of them know that the Federal Reserve is a private corporation and owned by a few families.

It was only known by a few back in 2009 and I said in a jocular way: A German actually needed to fly in to tell you guys that the Federal Reserve who prints all your Dollars and decides the fate of all the US is owned by five private families.

Since 2009 more and more people have come to understand that something is terribly wrong with the system. This is all a good development and leads us directly to the secret of physical gold ownership.

The Secret to Physical Gold Ownership

The gold and silver investor knows that only 10-30% of the annual supply is available for retail investment.

Physical Gold Demand and Supply 2013/2014


Because of this reality the supply of physical gold and silver bullion dries out within a few days should the demand rise dramatically. One would think as there are 2,500 tons mined every year the general availability in gold may rise but this is not the case.

The gold in circulation again is only a fraction of the annual gold supply.

Gold Investor Knowledge #1: Physical Gold and Silver coins and bars may not be available

People simply do not sell their physical gold and silver coins and bars because they know when demand rises dramatically again the market will be washed out of vailable gold and silver products. And by the time the market has availability again premiums will have risen or prices will be sky-high.

This very fundamental knowledge is the secret to physical gold and silver investments: „If you can‘t hold it - you don‘t own it.“

This is the very reason why we recommended in our Financial Outlook for 2014 to slowly add to the physical portfolio of gold and silver coins and bars.

The only two True Ways of Physical Gold and Silver Ownership 

The first way is the direct physical ownership. You buy gold and silver, have it shipped to you and then store it safely in a safety deposit box.

The second way is the direct physical ownership of gold and silver coins and bars stored under your name in a high security storage facility such as Prosegur and G4S offer.

You will always have immediate access to your gold and silver portfolio and in addition there is no counter-party risk.

At first the costs of buying and storing may look higher than with ETF‘s and other bullion providers. Over the long term you will save on costs with the direct investment as there are simply no other costs than purchasing, storing & shipping involved.

Plus... it‘s really yours and the safest way to invest.

Author: celticgold.eu

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