When there is a state bankruptcy, then all state guarantees are annuled and people lose their savings.
However, there are also people who do not lose assets in the times of crisis but they earn. These are people who have invested in tangible assets, especially gold.
At the present time there is danger of economic collapse in many countries. The United States and most developed countries of the European Union are in huge debts. The problem of precarious existence of the single European currency negatively affects the whole world. Recently, the U.S. national debt has been growing by nearly four billion U.S. dollars a day, it is more than a trillion dollars a year.
The U.S. Fed, the European Central Bank and the International Monetary Fund have been continuously pumping billions of dollars and euros into the economy to avoid immediate bankruptcy of overly indebted countries, which would trigger a chain reaction that would cause the collapse of the world financial system and the emergence of the global crisis.
A financial expert will probably recommend you so-called financial paper assets such as “term deposits, savings accounts, pensions, investment fund shares, corporate shares, various types of bonds, etc.” But, such assets are affected by crisis most. At best, they lose tens of percent of their value. In addition, these are legal documents – that means, if those who issued them, go bankrupt, then they can not be enforced and recovered. So you could lose your money completely.
Money or securities do not secure you today. Gold does.
All current global currencies are fiat, that is why, central banks can freely release more and more money in the circulation. This will both increase the rate of inflation and in addition, the bankruptcy of any state may cause a complete devaluation of its currency.
And it is gold, which is now de facto a single world currency, which would only remain valid in the case of a global collapse of the world financial system and its value would not be affected, on the contrary, its value would rise.
In the last hundred years the U.S. dollar has lost 98 % of its original value.
High inflation devalues savings stored in paper assets, such as cash or securities. Gold is immune to the effects of inflation.
The price of gold and other commodities normally follows the developments in stock markets most of the time. However, if there is a crisis, the price of gold increases significantly. It is due to the fact that demand for gold rises rapidly at a constant and speculatively reduced supply. This dramatically increases its value, regardless of the currency it is recalculated into.
The risk of collapse of the global financial system has grown significantly in recent years. As gold is a reliable way to protect and secure your finance from bankruptcy, more and more people have already purchased it.
