Governments used to back the legal tender currency by Gold. This is what is called Gold Reserve or Gold Standard.
Healthy economies usually have or better have had a Gold Reserve between 30 and 40 % of their monetary base. Switzerland for example – until they were kind of forced into the International Monetary Fund, which prohibits to link currency to gold (the Gold Standard) – had a law in place that for every additional Swiss Frank printed Swiss Central Bank had to buy Gold worth 40 Rappen, which means 40 %. That is how and why the Swiss Frank became such a stable and strong currency.
What used to be good for Governments to “hedge” (build a fence around their monetary system for the protection purposes), the Gold Standard, cannot be bad for the individual.
That is why in order not to be completely exposed to inflation tax, one should hold 30-40 % of all liquid assets in precious metals. This range is valid for politically stable times. In unstable times however, like now, that percentage should be increased way higher, so that you only keep cash for short term (< 6 months) living expenses.
No matter what financial tsunami comes along and destroys further remainders of what is left of people’s wealth, you will be protected by your physical gold and silver, which serve you like a rock in the sea.
Important: Do not store your gold and silver with a bank or any other outsourced storage facility! You need direct access to your private Gold Reserve and only you – I cannot emphasize this enough – only you know where your Gold and Silver is.
Always remember: The one with the Gold is the one who makes the laws. So if you would store it with third party, this would transform your Gold Standard into paper gold because all you will be getting is a paper receipt. Then there is the danger of allocation below 100 % which means, the storage facility lends or even sells your gold because they believe, that not all clients will ever withdraw their stored gold at once.
If you respect these guidelines and rules you and your family will be safe no matter what happens.
Where to buy your Gold Reserve for your Gold Standard?
Well you can do this either on a monthly basis with silver (instant delivery) or via lump sums. And the best address I know for accomplishing this: Gold Souk.
They do deliver worldwide.
Enjoy, prosper and profit from your Gold Standard!