Below is a very interesting video of an interview between Fabrice Drouin Ristori (Goldbroker.com) and Egon von Greyerz (Goldswitzerland.com). Egon von Greyerz explains why you should invest in precious metals like gold and silver to protect yourself from the current economic crisis, and why it very important to store it outside the banking system.
Egon von Greyerz, who had predicted the current crisis and advised his clients to invest in gold and silver in 2002 (gold was at $ 300 and silver less than $ 5), thinks that precious metals are the best way to protect its assets against the destruction of paper currencies.
Governments are bankrupt, debts are increasing now at an exponential rate, so the money printing will accelerate. Money printing will destroy the currencies as all currencies are going down, they have for the last hundred years, they are down 97 to 99 percent against gold in the last hundred years, they are down 80 percent against gold in the last 12 years, so there is not far to go to be down 100 percent and that will happen, and so will the money printing destroy the value of paper money, and that is what will create hyperinflation.
Egon von Greyerz highly recommends to hold gold or silver in physical form and not as “paper.” The paper market is much bigger than the physical market, so there is so much paper outstanding in gold, and in silver. And if one day when investors ask for delivery against the paper gold/silver that is outstanding there will not be enough physical gold or silver.
It is also very important to keep his gold and silver outside of the banking system, to eliminate the counterparty risk. We have never ever in history had a situation when virtually every single major government is bankrupt, and when the whole banking system is also bankrupt. So you have a situation where governments are bust, where the banks are bust, or potentially bust, and therefore gold must be held outside the banking system, in your own possession where you have direct access to your physical bars.