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Gold: The Risk‑Free Reserve Asset No Forecast Needed

A good interview we did 18 months ago with Anthony Deden: "The reason we own gold as a reserve asset is rooted in something fundamental. What makes gold compelling are the risks we do not take by owning it. No forecasting or guesswork is required. The risks we do not take owning gold could fill volumes. There's no duration risk, credit risk, liquidity risk. The metal is not moved by financial instability nor threatened by national insolvency or chaos in the foreign exchange markets. There are no margin calls and no refinancing risks. There's no risk of technological obsolescence, depletion, depreciation, or decay, nor does it require cheap energy, cheap credit, or cheap trade to remain viable. It does not care about your national energy policy or who you buy your gas from or how many pipelines are running. You don't have to keep the lights on or even keep it warm. There are no financial accounts to pour over, no balance sheet to blow up, no cash flow to dwindle, no stale inventory and no margin pressures at difficult times. There are no key manpower or supply risks, no competitive risks, no management or to squander his future. It does not depend on the character, skill or enthusiasm of anyone. It does not require the faith or goodwill of anyone. It does not require you to trust anyone except that you must store it and hold it in a safe place. So the absence of unwanted risk is the center of our investment approach. The principle applies to our choice of gold reserves as well as the business participation that we hold. Both parts brought together, seeking to avoid risks that are not worth taking, and by extension, have the freedom to choose risks worth embracing." https://t.co/37zULyf5BN