REAL GOLD AND SILVER
THE ULTIMATE WEALTH PROTECTION
IN A HYPERINFLATIONARY WORLD
REAL OR FAKE
THIS IS NOT WEALTH PROTECTION
• Gold / Silver ETFs
• Unallocated or allocated Gold/Silver in a bank
• COMEX Gold
• Futures Gold
• Bank safe deposit box
• Storing gold at home
• Part ownership in gold bars
PAPER GOLD vs PHYSICAL
• Most gold trading is paper gold
• Many gold ETF’s don’t hold physical
• Central bank lending of gold – encumbered
• COMEX cannot deliver
• Market will not trust paper gold
• Gold market will become physical
THE DESTRUCTION OF PAPER MONEY
Ounces of gold bought for $ 1,000
Invested Year Ounces Gold Price % change
$1,000 1911 50 $ 20 -99%
$1,000 1971 28 $ 35 -98%
$1,000 1999 4 $ 250 -86%
$1,000 2002 3 $ 300 -83%
$1,000 2011 0.6 $1,850 -
THE VIRTUES OF GOLD
• Gold is a medium of exchange
• Gold cannot be printed
• Gold has no liability attached to it.
• Gold is not one country’s currency
• Gold is a store of wealth
• Gold is indestructible – Virtually all gold ever produced is still in existence
• Gold has a high value to weight ratio
GOLD SUPPLY
• Production static
• 2,500 tons p.a. production - $ 130 billion
• 7 x more mined than found annually
• Gold bullion privately held - $ 1.5 trillion
• 0.8% of world financial assets – 25% average
• Increase in demand = higher prices
514,000 oz of Rock = 1 oz Gold
GOLD IN US DOLLARS
DOW GOLD RATIO
SILVER
• Poor man’s gold
• Small market $ 25 billion production
• No silver stocks
• Bi-product
• Gold silver ratio
• Price manipulation
• Major potential – but very volatile
SILVER IN US DOLLARS
DOW SILVER RATIO
GOLD SILVER RATIO 650 YEARS
GOLD SILVER RATIO 1998-2011
WEIMAR GOLD SILVER RATIO
XAU GOLD/SILVER INDEX vs GOLD
HUI / GOLDBUGS INDEX vs GOLD
Matterhorn Asset Management • Wealth preservation experts
• Based in Zurich, Switzerland
• Wealth protection for high net worth individuals
• Specialise in physical precious metals
• Advised clients in 2002 to buy physical gold at $300 for up to 50% of portfolio
• Minimum investment $ 1.5 million
GOLD STORAGE
GoldSwitzerland • Specialises in physical gold and silver bullion
• Stored outside the banking system
• Gold bars owned directly by investor
• Personal access to your own gold / silver
• Not paper gold, not fractal ownership
• Ultimate form of wealth preservation
• Minimum investment: – GOLD $ 150,000
– SILVER $ 200,000
SWITZERLAND AFTER UBS
• Banking secrecy virtually gone
• FATCA – foreign account tax compliance act
• Some Swiss banks still accept declared US funds
• Stable political system
• Stable economy
• Strong currency
• Exchange controls – critical to act now
Geneva Jet d’eau Height:140 m
All refined gold in the world Height: 20 m