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Message: <blockquote data-quote="ibnanv" data-source="post: 23155563" data-attributes="member: 218596">If you want to preserve your wealth, buy physical gold – precious metals expert<img src="https://cdni.rt.com/files/2018.04/article/5ae330f9dda4c8ce208b4577.jpg" alt="" class="fr-fic fr-dii fr-draggable " style="" />          Gold, which is traditionally seen as a safe haven, is usually  subject to the whims of supply and demand. Its value changes quickly,  pushing the bullion price to extremely high levels at times.The yellow metal also  makes a habit of performing poorly when the stock market is doing well.  But gold is the ultimate store of value, according to precious metals  expert Ronan Manly of Singapore’s BullionStar.“What this means is that gold retains its purchasing power over  long periods. Gold's purchasing power is not eroded by inflation as it  is an inflation hedge,” the analyst told . “In contrast, fiat  currencies such as the US dollar are not stores of value. Fiat currency  purchasing power is consistently eroded by inflation, and over time  fiat currencies, such as the US dollar, lose nearly all of their  purchasing power relative to gold.”Widely accepted as a safe  haven, gold is commonly seen as financial insurance in times of crisis,  conflict or war, with investors rushing to the asset during these  periods, according to Manly. He compares the precious commodity to a “safe harbor when there is geopolitical turmoil.”The  expert points out that the physical commodity has a low correlation  with the prices of other financial assets and securities, as it is less  impacted by business and macro-economic cycles compared to most other  assets.“Gold therefore also aids portfolio diversification  since by adding an investment in gold to an existing portfolio of other  assets such as stocks and bonds, the overall volatility or risk of an  investment portfolio can be reduced while boosting portfolio returns,” Manly said.Accept no paper substitute: Buy physical goldThe research  analyst stresses that the best way to invest in the precious asset is to  buy physical gold as opposed to gold-backed exchange-traded funds  (ETFs) or gold futures. “Physical gold has a limited supply unlike  fiat currencies because gold is difficult and costly to mine and  process, and is therefore scarce,” the precious metals expert said.According to the expert, gold-backed ETFs only provide exposure to  the gold price and not to gold. Unit holders of gold-backed ETFs are  shareholders, not gold holders. Gold-backed ETFs are also complex trusts  or securitized products, where the trust owns the gold, and there are  many moving parts and a lot of counterparty risk to the various  entities-backed ETFs, there is also no option to take delivery of the  underlying gold or to convert the units or shares into physical gold.The  expert adds that the advantage of physical gold is that it is portable  and anonymous, difficult to counterfeit, cannot be debased and is highly  stable to counterparty risk or default risk since it’s not issued by  any corporation, government, central bank or other entity.“It’s  also portable across international borders and due to the universal  acceptance of gold around the world, the gold market is highly liquid  and gold bars and coins, as long as they are recognized as being  fabricated by well-respected mints and refineries, can be sold in almost  any city in the world so as to raise cash at any time,” Manly said.According  to the precious metals expert, physical gold is beyond the banking  system and ring-fenced from financial repression, as well as from the  risks that are essential for the current global monetary system.“So  if you want wealth preservation that is outside the banking system and  that doesn't have any counterparty and no contract or entity that can  default, then you have to choose physical gold or at least something  that has a direct claim on allocated physical gold,” concludes Manly.</blockquote>

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