Archive for February, 2011

Financial Armageddon from worthless Paper Money

Monday, February 28th, 2011

Maybe you think it sounds extreme but daily we move closer to the real possibility that a major fiat currency such as the US Dollar or the Euro could collapse in the blink of an eye.
The mounting economic pressures mean that eventually something will have to give.
Inflation is rising.
Oil prices are rising.
Debt is unresolved.
Property prices are falling.
Unemployment is rising.
The cost of living is rising.
Wages are stagnating.
Raw material costs are almost out of control.
Energy costs are rising.
Growth is negligible (and most estimates are over-egged by floundering politicians)
North Africa and the Middle East are unstable. The knock on effects are pure guess work at best.
What will happen next?
What will be the net effect of all these things stirred up with a huge dose of uncertainty?
It’s like a tinderbox to start a Finacial Armageddon.
Just one single event could trigger an unstoppable domino effect that would lead to financial meltdown.

Don’t believe me?
What if Greece cannot keep to the rescue plan imposed on it? What if it defaults? Will a whole country go broke? And then what?
What if the Eurozone feels the knock on effect or what if another bigger Eurozone country requires a bailout?
Any of the major currencies could be put under extra pressure resulting in a run and a collapse and at any time.
The US dollar is a benchmark for the world, for oil prices, trade, banking etc.
Is it conceivable that this , the most important currency on the planet as we know it , could collapse.
Take a look at this video and decide for yourself. Impossible, Possible, Probable or highly likely?

This is a timely reminder to the fragility of wealth stored in currency or as a paper promise reliant on the success and existence of a large institution.
Wealth needs protection for survival and the acquisition of valuable physical assets that can survive a crisis is the only way. No wonder Central banks and the biggest fortunes on the planet are stocking up on Gold!

And if the Libyan Crisis redefines World Order?

Friday, February 25th, 2011

The recent uprisings in several North African countries have already suggested the beginning of a new global crisis. Today, Libya was engulfed in flames, and this more than tense geopolitical situation has a major impact on a product whose course is scrutinised daily: oil.
Libya, producer of 1.6 million barrels per day, remains one of the major black gold suppliers in the world. Could this Libyan revolt completely change the landscape of the economic markets? will try to clarify.

The Libyan people revolt, the markets panic

On a daily basis, the markets increasingly fear a reduction in their stockpile of oil.
On Monday 21st Feb the markets showed a significant trend upwards in New York with the price of a barrel from its Friday finish of $86.08 to $89.53. In Britain, North Sea Brent barrel climbed up to $105.08 during the session. Major Oil companies are leaving: Wintershall, a German subsidiary of BASF stopped its production, Norwegian Statoil ASA has closed its doors and made employees redundant, the French company Total and the Spanish company Repsol have repatriated their teams and the Italian company Eni has returned home.
In short, the markets are apprehensive that the uprising in Libya will have an unprecedented and real impact on oil supply. Let’s look at the Libyan statistics: it is the fourth largest producer of oil in Africa, the country has reserves estimated at 42 billion barrels. Libyan oil accounts for more than 20% of the oil imports by Ireland, Italy, Austria and not insignificant amounts by Switzerland, Greece and Spain (source: International Energy Agency).

Facing anxiety: what will happen in the coming days?

Tunisia, Egypt, Libya: the countries of North Africa that have had uprisings. What do the international markets fear? That this scale and fervour reaches other Middle Eastern countries like Syria, Jordan and even beyond in the so-called domino effect. We have already seen significant problems in Bahrain and Saudi Arabia is taking preventative reform measures. Investors expect the worst and this latent situation promises little of good. The failure to anticipate or predict these uprisings evokes a feeling of unease and even fear for the coming days. We are not alone in this view! Victor Shum, an analyst with Purvin and Gertz in Singapore said that “the concern goes beyond Libya, which is a relatively small producer and concern is growing that larger producers may also be affected by the risk of contagion of these revolts”, while Vladimir Putin sees a “serious threat” to the global economy.
The beginning of the crash of 2008 began with rising raw materials: 2011 could be another year of crisis?
Soaring oil prices, rising inflation, raw material and commodities costs spiraling, energy prices still rising, unemployment increasing, Sovereign debt issues unresolved, lack of economic growth and recession looming.
Economies are shrinking and they have inflation – a tough call even for Houdini!
So what can one do to offset the worry, when crisis looms we must look to protect our savings in real tangible value that is unattached to currency or failing institutions? It isn’t black gold; it is real physical gold that remains the safe haven for securing your wealth and is the only insurance against the crisis ahead.

Should I Buy 32 Krugerrands or a 1 Kg Gold Bar?

Thursday, February 24th, 2011

After all they have the exact same weight in Gold.

For a long time the buying and selling of gold has been outside the reach of the average citizen. The predominate banknote and the dominant currencies previously managed to position themselves very well in respect of the precious metal during stable periods. However, it is during difficult times that the true, safe value of gold really stands out. A lot of businesses which were deemed lucrative and reliable have been unmasked since 2008 thereby clearly exposing the reality of the situation. Similarly, quantitative easing and currency wars have highlighted the volatility and vulnerability of currencies during recent years. Countries like China with huge Forex reserves, institutional investors, pension funds and even personal saving accounts alike have lost significant value in the blink of an eye as currencies have weakened.

The reality to which we are referring is the stability and confidence of an investment in gold. Fortunately, nowadays it is easier for you to convert your savings into gold. Think for a moment of the real value of a banknote or currency. They are hopelessly vulnerable given that the price of coloured paper is not worth anything. Let’s not kid ourselves. Your savings are safe if they are converted into gold given that since it was first admired by human beings, it has been desired, sought after and treasured through the centuries.

The first step in buying Gold

If you have already decided to buy gold to transform your savings into something of value, perhaps you don’t know where to start. Since the US, UK and Canada, amongst others, entered this crisis in the spring of 2008, many business involved in the buying and selling of gold have sprung up in towns and cities everywhere. Many of these are actually looking to buy your gold, offering you cash in so called great deals, but most have been exposed as a rip-off because they are part of the recycling business. It is normal for you to be asking yourself whether these businesses are reliable. Do they sell 24 carat gold? Do they give you a good price? What do you do when you want to sell? The common denominator is that such businesses spring up because the demand for gold is so high and so lucrative. There is not an infinite quantity of gold on our planet so recycling surges like this indicate that demand is high, supplies dwindling and of course that the price of gold is rising. The prices paid for recycling your gold are far inferior to the headline spot price quoted because companies have to make their margins.

It is probable that your bank is not able to advise you either because it is not their speciality or they prefer you to invest in their own portfolio of investment products. If you decide to go to a dealer in Hatton Garden, Downtown New York, Sydney or Toronto, it is probable that they sell whole gold bars or smaller fractions as gold ingots. At first sight it seems very safe and easy but be careful what you pay. The price of a 1Kg bar shoul be near to the gold price plus a few percent. However, the smaller ingots do not compare so well. Often these are sold up to 50% higher than the spot price. You buy the gold over the counter and then what. Ideally you should store it in a vault for security but remember that your bar or ingot loses value immediately because it has left the professional circuit. When it comes to selling you will need to pay (and find) a professional to assay (verify) your gold Also, the issue is will you make a good return on your investment. In the case of expensive smaller ingots the gold price will have to increase drastically to recoup the 50% premium before any return is made.

We should also point out that a 1 Kg bar has certain disadvantages. To start with, if you wish to sell it in fractions, it is obviously difficult to cut up and so when you wish to sell it has to be the whole bar and you need to find a buyer who has the money for a whole bar and trusts you that it is what you say it is. It is also difficult to transport because at airports it is considered as a blunt instrument. It is impossible to send by post because it can only be insured for a maximum value of five thousand Euros (or equivalent) and there are also false ingots which are either plated or filled with tungsten. The list is long but most importantly the price of bullion bars only increases with the spot price. This is important to remember at resale. The most important moment for a gold investment is the moment at which you choose to sell it i.e. for a maximum return on investment.

There are some new innovations on the market that offer smaller ingots at prices similar to a 1Kg bar. These are good value as they allow investors to enter the market and pay a reasonable price plus they are easier to sell because they can be sold separately. The other important factor for any gold investment is where to keep it. There is only one safe place- in a Vault. This protects the integrity and value of your investment because it never leaves the professional circuit and there are no unnecessary transport costs to eat away at your investment. It also makes resale very simple because the gold does not have to move.

In summary, beware of over-priced small ingots, do not take possession of gold and when you buy a 1Kg bar ensure that it is from a reputable professional source and close to the spot price. However, bars and ingots do not maximise the benefits during periods when the price of gold is high, especially during the current crisis, although allocated physical gold is always preferable to “paper” gold as an investment.

If Gold bars are good but not the best physical gold investment then what is?
What should I do if I have about thirty six thousand Euros to invest?
Buy a 1Kg Gold Bar or Gold coins with 1Kg of pure gold content?
The answer is clear: buy thirty two Krugerrands (that contain 1Kg of pure gold).

Gold, the value of confidence

The word crisis means change and we do not doubt that on many occasions this is positive, but if it is about our savings, our confidence in the future, then the crisis shakes us and makes us anxious and uncertain. Many Europeans have always had confidence in gold and now, in these unstable times, they feel satisfied with their choice. For example, our French neighbours hold between three and five thousand tonnes of gold, almost double that held at the Bank of France. But are they Gold bars? No, they are coins and, specifically Kruggerands. How is it possible to feel confident saving if our confidence is based on paper? It is clear. There is nothing more reliable than gold. Has it not survived thousands of years up until now?

How can we measure its value?

During these uncertain times in which we are living, selling gold coins is easier than buying them. We have now witnessed a period of high prices for gold. We are able to calculate the value of coins by a so-called premium. The premium can be zero or very low which is when coins are being sold at the price of the gold they contained.
To explain, the premium of a gold coin is the difference between its actual selling price and the price for the gold content it contains. This is expressed as a percentage.
As demand increases for coins so the premium increases. Please note that the premium of a Gold coin can rise dramatically even if the gold price doesn’t. This means buyers are seeking the coin as a store of wealth and safe haven.
The benefit of Gold coins is that they can rise in price with the gold price (reflecting the pure gold content they contain) and because demand is high (their premium increases).
The premium can be different depending on location representing a differential in demand.
This difference can be illustrated and calculated by taking the price difference between a one ounce Kruggerand in the UK, for example and the same in the USA or Australia. These two coins have the same weight and the same quantity of gold (Law of 900 °/oo) and yet the price can be different given that the Kruggerand is much more in demand in one country or in limited supply.
These differences in price for the same coins are known as the Premium differential and they can be used as a measure of supply and demand but also as a means for judging the value of a gold coin investment. Remember that 2 factors change the price of a coin, the gold price and the premium.

It’s a case of Heads you win, Tails you win!

We decided to use the example of the one ounce Kruggerand because this is a very well-known coin, but we could equally have chosen the Swiss Vreneli, the Sovereign or the American Gold Eagle, all which are recognised throughout the World.
Finally, physical gold investment is an excellent way to protect your wealth, especially during times of crisis and instability. Protecting your investment and maximising its return means keeping it safe and secure in a Vault. If you have the means to make the choice between a 1 Kilo Gold Bar and 32 Krugerrands, which one is the best investment?
32 Krugerrands everytime!

Gold demand at 10 year high

Wednesday, February 23rd, 2011

Official figures released recently by the World Gold Council confirmed that demand for gold continues to rise. In 2010 the annual demand for gold rose by 9% equating to 3,812.2 Tonnes which is worth around $150 Billion. This is a ten year high and a strong indicator that the current price is not only sustainable but likely to increase further.
This increasing demand can be attributed to several factors.
First, there is an even higher demand for Jewellery.

Secondly, demand strengthened in key Asian markets, notably in China and India.
The Indian market is based on strong cultural references such as the Wedding Season and 2010 saw a revitalisation of the sector as awareness grows regarding the protection of wealth in gold.

The Chinese demand is backed by a strengthening retail investment by private affluent investors who are looking to gold bars and gold coins as a safe refuge for their newly acquired wealth.
The Chinese market saw the greatest increase in investment demand growth. The annual demand showed a 70% increase year on year and was equivalent to 179.9 tonnes.

After 21 years Central Banks are Net Purchasers

Thirdly and even more significant is the fact that after 21 years of being net sellers of gold the Central Banks became net purchasers of gold. This can be seen as a consolidation of their position in troubled times because they feel exposed to Forex fluctuations due to currency dilution and devaluation. It is also proof that they see gold as a safe haven to protect their reserves of wealth when they are aware of instability and potential crisis ahead. The instability in the Middle East, the soaring oil price and the risks of increasing inflation in developed economies is causing anxiety.
Central Banks are all too aware of the possible Eurozone collapse as Sovereign debt issues, austerity measures and bailouts fail to shake off the looming depression that awaits.

What will happen if Greece, Ireland or any other of the Eurozone Members are unable to abide by their debt resolution measures? Chances are there will be more than one if not all of them. Politicians wrangle with the shackles of increasing debt which they are trying to defer to another generation on a daily basis but fact is they can’t run away fast enough and they WILL get caught out. What then?

Paper Gold or Physical Gold?

It is hardly surprising that real demand is focused on physical gold and this can be illustrated by a drop of 45% for the year in demand for ETFs (or paper gold). Investors know that protecting their wealth ahead of a crisis can only be achieved by owning physical tangible assets.

When a crisis hits hard no-one can guarantee the value or indeed honouring of paper transactions as the financial institutions offering such products are themselves vulnerable to the systemic debt that pollutes all economies and that influences everyday life across the globe. Nobody predicted that an institution such as Lehman Brothers would fail or that RBS and Lloyds Banks would be brought to their knees. Similarly no-one can tell you today who will be the next casualty when economies falter. It could be your bank, your pension provider, your employer.

Act now or do nothing?

If you really like a bet then do nothing and take a chance on life not changing for you.

If you prefer to protect what you have and want to be sure that you are left with something for your future survival then get in to gold now. It is the inflation proof investment that is like fire insurance for your personal wealth. Exactly like fire insurance, do you think you should buy it before or after the event?

There are more and more options for physical gold investment and it has become accessible to everyone.
The most difficult step to take is to start, the rest is logical and reassuring.

Remember that investing in bars is good but investing in gold coins is even better. Click here for a guide to gold coin investment and don’t wait to start.

Who controls your money? Who controls the Banks? …..and Who controls YOU?

Saturday, February 19th, 2011

I’m sure that we all believe that governments control the money supply especially in their own country and their own currency.

I’m sure that when we place our blind faith in the banks for loans, mortgages and everyday banking we trust that they will do their best for us and operate with upstanding principles to protect our assets.

I’m sure that those of us living in a free democracy believe our liberty and rights are being controlled by fairly elected governments representative of the people.

I’m sure that as you watch the daily news about unrest around the world you begin to sympathise with the poor oppressed peoples and hoping that soon they can have the same safe system bestowed upon them that we all apparently enjoy.

I’m sure that you would be horrified to learn that the controlling influence on the largest economy in the world and therefore an influence that stretches right around the world does not actually belong to the US government at all.

Despite its self-appointed name, the US Federal Reserve which controls Quantitative Easing, the printing of the US Dollar and US Economic Policy is actually a private company steeped in mystery with a special status completely outside the control of law.

You don’t believe it? Well just take a few minutes and watch the video for a quick insight into the real world of money laundering and absolute control.

Remaining ignorant could be bliss but then again if your livelihood and survival depends on it sometimes it’s better to be informed.“the american dream” Video

You may now understand why your continued use and enslavement in paper assets is important to those who would seek to control.

When a crisis hits or the bubble bursts you will be left with nothing and no way of reclaiming a cent or a penny of your hard earned cash.

Do you think the politicians, bankers and enormous fortunes of the world will really care?

After all when was the last time you saw a poor politician or a poor banker?

When crisis strikes they remain the great untouched because they have the personal means and wealth to survive wars or economic disaster. They won’t feel hardship or hunger but you will.

During World War II many ordinary French families managed to survive the occupation because they had stashed a few gold Napoleon coins away which they could use to buy food. This is fact and is borne out by many a testimony from the time.

If the monetary system imploded or crashed and your Dollars, Euros, pounds or whatever became worthless, how would you survive?

Gold ownership is like a fire insurance for your personal wealth and is an investment in a physical entity that you own. When a crisis hits it has always proved to be vessel of value irrespective of the currency or era.

The logic for fire insurance is quite simple – should you buy it before or after the event?

Gold investment for the masses has never been encouraged because the Banks prefer you to believe in paper money which they can print, lend to you and make huge profits for themselves in the process.

It has never been in their interest to tempt you or advertise its qualities because they have been “stealing your gold” since money was invented.

In the Age of Austerity we find ourselves, not knowing whether currencies or countries may collapse at any time, what have you done to protect yourself from destitution and desolation?

Maybe you like taking chances and are hoping for the best but that may not be enough to survive and feed yourself.

Maybe you could plan ahead and maybe you should start now?

Remember, after the fire it is too late to buy insurance!

10 Reasons to invest in Physical Gold

Friday, February 18th, 2011

There are many potential investors wondering what all the fuss is about concerning Gold because for the longest time it has been viewed as a past time for millionaires and Countries. The Gold we refer to here is “allocated” gold i.e. a specific, referenced, visible piece of gold bullion or a gold coin that is allocated to and owned by one person. It does not necessarily include quantities of gold held as anonymous parts of anonymous bars in anonymous vaults (“unallocated”) because this type of gold cannot be repatriated to the owners if the need arose as no-one knows which bits of which bar belong to each investor.

1. It is an investment that you own, it is your property and it cannot be lent out to a third party or used to form credit.
2. It has increased in value over 600% in the last 10 years and has shown a healthy return on investment year on year.
3. It is not a paper asset vulnerable to to the performance, viability, stability or existence of an intermediary.
4. It is not an investment in a Bank which cares little about paying you interest and a return on investment because it is preoccupied making money for itself.
5. Historically it is the only “currency” to maintain a real value in purchasing power throughout centuries.
6. It is a debt free investment, not linked to the worldwide black hole of sovereign debt and spiralling deficits.
7. It is THE safe haven for wealth and used by Countries and the largest Private fortunes on the planet as a protection against inflation, currency devaluation, economic instability and ultimately pending crisis.
8. Economic and financial experts the world over recognise and advise that Gold should form part of every investment portfolio.
9. The price of gold has been suppressed and controlled for decades by those who seek to control global finance. Since 2008 the rules have changed and control has been lost. If the gold price was corrected by the same factors as fuel, food and currency it would be worth at least $2100 an ounce today.
10. It is a precious metal available in a finite quantity that is constantly in demand the world over.It is always a good time to invest in gold because demand is extremely high and supply is dwindling. Prices will fluctuate but in the end Gold will continue to rise because it is irreplaceable, a precious metal with unique properties and it cannot be manufactured or printed.

There may well be more good reasons to invest in gold so feel free to leave a comment and add yours because there can never be too many.

The financial elite have guarded the control of Gold for far too long and would prefer that it remained their sole property.

However, in a current day climate of democratic rebellion by the masses against authoritarian elitist control of wealth it is time for everybody to share in the prosperity of gold investment.

After all, your wealth in gold is a lot safer than your wealth in the Banks!

Gold is as good as a rock solid Triple A rated Investment

Monday, February 14th, 2011

Gold hasn’t reinvented itself as a currency yet. But it is getting closer.
J.P. Morgan Chase & Co. said it will allow clients to use the metal as collateral in some transactions. For example, a hedge fund wanting to borrow money for a short period can put up gold as collateral and use the borrowings to invest elsewhere, betting on making a better return. Typically, banks accept only Treasury bonds and stocks in such agreements.

By making the announcement, J.P. Morgan is effectively saying gold is as rock solid an investment as triple-A rated “Treasurys”, adding to a movement that places gold at the top tier of asset classes. It also is trying to capitalize on all the gold now owned by hedge funds and private investors that is sitting idle in warehouses.

“It’s solidifying a trend that gold is re-establishing its role as a monetary and financial asset,” said Carlos Sanchez, associate director of research with New York commodities consultancy CPM Group.

J.P. Morgan said it is responding to demand from clients, many of which also store gold in the bank’s vaults.

“Many clients are holding gold on their balance sheets as an inflation hedge and are looking to make these assets work for them as collateral,” said John Rivett, collateral-management executive at J.P. Morgan Worldwide Securities Services.

J.P. Morgan’s decision Monday reignited debate among gold’s fans and detractors. For decades, supporters have argued gold is a monetary asset and should be treated on an equal footing with cash. However, gold critics argued the market has been too volatile and too small for it to be considered a legitimate currency.

Recently, though, gold’s status has been rising.

Exchanges in New York, Chicago and Europe recently agreed to accept gold as collateral for certain trades. And the World Gold Council also is gaining traction in its push to have the Basel Committee on Banking Supervision accept the precious metal as a Tier-1 asset for banks, along with government bonds and currencies.

In India, many financial-services companies are offering personal loans against physical gold, a market that is expanding.

“Gold is increasingly being used as collateral around the world,” said Natalie Dempster, the gold council’s director of government affairs. “All these moves reflect a growing recognition of gold’s role as a high-quality, liquid asset.”

Gold futures for February delivery on Monday settled 70 cents lower, or 0.1%, at $1,347.60 a troy ounce on the Comex division of the New York Mercantile Exchange. It reached a nominal record close on Jan. 3 of $1,422.60.

In essence, J.P. Morgan is creating another role for gold, which has limited use now. One of the main laments of the metal’s critics is that, once bought, the metal doesn’t generate any income, compared with interest on bonds or dividends on stocks, and mainly just sits in vaults, rising and falling in value.

“It gives another use to gold as a cash instrument,” said Tom Pawlicki, an analyst at MF Global, a commodities brokerage. Investors who hold gold, he said, “might be less likely to sell it.”

Gold still is far from being the integral part of the monetary system it once was.

After World War II, under the Bretton Woods agreement, several countries pegged their currencies to the dollar, which in turn was fixed to the price of gold. President Richard Nixon ended the dollar-gold peg in 1971.

It is unclear whether customers need to hand over the physical bullion to J.P. Morgan or at what haircut the metal will be pledged with the bank.

There still is risk for financial institutions in taking gold as collateral.

If prices fall sharply, along with the value of the underlying trades, the collateral value could fall short of covering the trading positions, leaving banks scrambling for more margin to cover the losses.

In the past, worries about a lack of liquidity in the gold market have prevented banks from taking gold as collateral. But as investors piled into the market in recent years, the market has deepened.

The market is more liquid than many government-bond markets in Europe, with daily trading volumes normally exceeding $100 billion, according to the World Gold Council.

“When a bank, such as J.P. Morgan, is willing to extend collateral value against an asset such as physical bullion, it shows that they are not worried about the liquidity issue if they might take the collateral over or they have to liquidate the collateral,” said Frank McGhee, head precious metals trader at Integrated Brokerage Services, a Chicago broker.

Source Wall Street Journal: Carolyn Cui, Rhiannon Hoyle, Liam Pleven and Matt

Paper money or Gold

Tuesday, February 1st, 2011


envoyé par grandzebre

World Exclusive: The LinGold Savings Plan – The First Personal Savings Account in Physical Gold

Tuesday, February 1st, 2011

You may be despairing at the lack of returns from your savings account in the bank and their lack of imagination in offering something new, something different. Well you’d be right but now there is something innovative and a new way to save regularly every month.

It’s called the LinGold Savings Plan and is available exclusively to Members of

It’s an account with a difference.

There’s no set up fee.
There’s no annual fee.
There’s no charge for storing your valuable asset in a state of the art vault.
There are no hidden charges.

And what’s more it’s an asset that is tangible, which you own and that can’t be lent out to anyone else.
It’s yours to keep or to sell later, whenever you want and it’s easy to sell from your online Members account 24/7.
You don’t have to look for dealers or risk auctioning it off on eBay.
In fact it couldn’t be simpler.

All you have to do is buy a minimum of 1g of gold per month and that’s it. If you want to save more then you buy more whenever you can and whenever you want.
It’s a plan to encourage people to save for the future in the best precious metal which has a history of being the safest haven for your wealth whenever crisis looms or economies and currencies are volatile and unstable.
To make things easier you can set up a direct debit if you wish to transfer funds each month allowing you to purchase freely on the website. You can even credit your account instantly using PayPal, from an existing PayPal account or with debit and credit cards aplenty.
It’s not often that an innovative investment idea gives such an opportunity to benefit from a previously considered elitist commodity.
This plan makes saving in a physical gold investment accessible to everyone and any budget.
How long will it take to see the banks trying to copy this?
It’s almost the Gold Standard in reverse, the people preferring to own gold rather than the currency they earn.
This will mark yet another chapter in the gold revolution taking place because ordinary folk everywhere have had enough of being duped by the big financial institutions.
This way of saving firmly puts the customer back in control of their savings and we applaud this initiative.
Well done and please let us know what’s next!



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"For a mountaineer, the important things are the effort, the posture and the muscles. The rope that holds him serves no purpose when everything works but it gives him a sense of security. In the same way, all gold does is ensure confidence; it's a safe haven."