The Physical Edge Episode 3: March 2016 Interview with Alex Stanczyk

Topics include:

According to the IMF, gold is the only Case of a financial asset with no counter party liability

Gold will not default like some other financial assets could during a liquidity crisis

Over 30% of the bond market is now negative interest rate bearing, with over $7.9 Trillion at negative yield and gold is looking more attractive

The meme that gold is a bad investment because it produces no yield does not stand up under scrutiny, all forms of money generate no yield unless invested

A modest allocation of a portfolio to gold acts as a diversifier and a truly non-correlated asset

Gold is not subject to hacking or cyber warfare

Gold is truly non-correlated

There is a physical market for gold, regardless of what financial markets are doing

Gold protects against sovereign risks such as rapid currency devaluations, examples Russian Ruble, Brazilian Real

It’s a hard asset with no counterparty risk, and it has excellent liquidity compared to other hard assets, such as real estate. Gold has almost a 24-hour, very deep, and highly liquid market

Criteria when evaluating vaulting jurisdictions

Political stability, economic stability, rule of law, history of confiscations, precious metals industry infrastructure, strategic defenses

Switzerland as a vaulting jurisdiction

Long standing relationships in the precious metals industry in Switzerland

Switzerland is the core of the precious metals industry, and is a solid foundation for liquidity globally

Reasons for electing non-bank vaulting

Rule of Law matters regarding gold as a financial asset or physical property