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bigworld

11/19/12 10:39 AM

#7859 RE: Market_Fest4 #7858

MF4: There is a mutual fund you can buy which holds real gold in a vault in the Zurich Kantonbank (ZBK). ZBK offers ETF's in gold, silver, platinum and palladium. For the gold ETF each share is the price of one ounce of gold and it is matched by actual physical storage at ZBK. (Silver shares represent 96 ounces). ZBK is one of the few AAA rated banks in the world. Under its charter the canton of Zurich bears responsibility for all the bank's liabilities. When the time comes I'll utilize this method to hold physical gold in silver in quantities I do not wish to physically hold myself. Not every brokerage house offers these ETF's, but I use Scottrade and they are available there. That's just one strategy. There is also an online bank that lets you have deposits in a number of foreign currencies. So without having to deal with Brazilian bank and a language barrier I can hold money in Brazilian real, or Norway's Kroner, or Swiss Francs. I will have some physical silver hidden away at a relative's house. I'll still hold my favorite commodity ETF's until the inflation panic of 2015-2018 (estimate) peaks. At some point interest rates will top out on US Treasuries like they did in 1982 and will be attractive to own with yields well above 10%. Like all assets that get overbought or oversold there will be a point in the inflation panic period where no sane person will want to own US Treasuries. At that point they will become a very attractive investment. Just as when the price of gold and silver are the lead story on the nightly news and everyone is lined up to buy it with their inflation ravaged Dollars....it will be time to sell your precious metals to them. But getting back to your original question it will take multiple strategies to try to retain buying power and capital preservation. But the next 6-8 years of upheaval can be a very lucrative period for knowledgable, brave and nimble investors.