There are many reasons why it’s a good idea to invest in physical gold. One of these reasons is the historic fact that gold is one of the only assets that can hold its value during a currency collapse or a systemic economic breakdown. In the wake of current events many governments around the world are creating an unprecedented amount of currency to prop up insolvent institutions. The consequence of this form of governmental intervention in the markets is not only making investors leery of these institutions, but also is one of the main reasons why every nation’s currency is falling when compared to gold and other physical assets. The essential problem with the world economy is nation’s monopolistic adoption of fiat currency and central banking. These two unsustainable practices have been so integrated and institutionalize in most nation’s economies, that the notion of insinuating that they are the cause of the problems can not be fathom.

The worst case scenario is nations with their attempts to prop up an unsustainable central banking model, will hastily collapse another unsustainable model; fiat currency. As more and more currency is created in an attempt to keep trust in the banking system, and as businesses find it more difficult to secure credit; governments will likely adopt rules for banking institutions to loan out money. These rules will apply to banks that got loans from the government. This will cause banks to loan out money that they otherwise would not have because of the economic situation. With this scenario banks that did not take any government loans will have to also make loans or take government loans to compete. This will cause inflation, and as prices of goods and services rise rapidly and more banks ask for government assistance; the trust in the currency and the banking system will ultimately collapse.

This scenario being the worst case scenario is more likely to happen than governments allowing its citizens to opt out of the central banking and fiat currency systems. Some ways governments can allow it citizens to do this is by allowing free market competition to these systems. The only way to opt out is to invest in assets that are independent of these two systems. Gold bullion is one of the best ways to store wealth independent of fiat currency, central banking or governmental institutions. In fact history has shown when all fails only things with real value remain, be it time tested institutions or assets. Extra Ecclesiam nulla salus.