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25 Apr, 2020 07:18

Physical gold is the ‘perfect hedge’ against all risks & financial system’s crash, adviser on precious metals tells RT

Physical gold is the ‘perfect hedge’ against all risks & financial system’s crash, adviser on precious metals tells RT

As investors seek safe haven assets during this crisis, analysts are getting more bullish on gold, projecting its price to surge. RT talked to Claudio Grass, a Switzerland-based precious metals adviser, about gold’s true value.

According to Grass, the question is not if gold is going higher, “it’s always the paper price of currency that is fluctuating its prices.”

He said: “An ounce of gold is always an ounce of gold. So, basically, gold is not going higher in price.” And, if you really want to buy physical gold then you’ll have to pay much more than the paper price, the analyst added.

Grass pointed out that physical gold and the paper price of gold are two different things. “I truly believe that gold can go higher but the paper price of gold could go down to zero because it is a paper security, it’s debt security, it’s just a promise.” If you buy physical gold, that’s completely different, it’s an ownership, you own an asset, real goods, he explained.

Also on rt.com ‘The Fed can’t print gold:’ Bank of America sees bullion price surge to $3,000 as paper money crumbles

At the moment there’s an unprecedented debt bubble because of the coronavirus pandemic, and all financial markets are completely overvalued, Grass said. Talking about the stock market, he noted that we haven’t yet seen all the bankruptcies, all the unemployment rates. “People are still paralyzed and in fear because of coronavirus… and the financial panic of the stock market is still coming.” 

The price of gold is rising because the purchasing power of the US dollar and other currencies, like the euro, are depreciating. “Whenever you’re printing, you’re debasing the currency.”

Grass explained that when you buy something, you have to buy when things are cheap, like physical gold “which is money, everything else is credit.”

He continued: “So, gold is cheap, and it’s physical, and it’s outside the banking system, and it’s a perfect hedge against all the risks in the current financial system.”

Also on rt.com World’s super-rich are hoarding physical gold in secret bunkers

Physical gold will save those who keep it, as long as governments don’t confiscate it, according to Grass. 

Silver and platinum are also a good deal, Grass said, adding he “would not recommend palladium, it is in a bubble because of the car manufacturing industry…”

For more stories on economy & finance visit RT's business section