You undoubtedly know gold’s internal value and you recognise its value as a defensive security but do you know its protective value? In fact we also consider that gold has the ability to protect its owner from arbitrary decisions taken by governments. We believe we can protect ourselves equally well from internal currency devaluation following price increases (reduced purchasing power) as from an external degradation of the currency such as an exchange rate devaluation. In this respect, we are often reminded of what has actually happened in countries where successive devaluations after the Second World War has led to people suffering losses of wealth that in many cases was mitigated  to a certain extent by people transferring their money to gold

Tags: Gold, inflation, Money

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