Bullion is not an investment. Gold and silver are not just commodities; they are monetary metals. Bullion, in other words, is money. But unlike currencies, gold and silver bullion is money that cannot be created out of thin air by central banks. In other words, holding bullion is like holding cash. But, unlike paper money or currencies, bullion is an asset which is nobody else’s liability.
J.P. Morgan himself said it best when he was asked by a US Congressional committee in 1912 what was the role of gold. He said: “Gold is money. Everything else is credit.” How times have changed in the last 100 years, as most people now seem to have forgotten or are unaware that gold is money. Yet, gold is becoming a trade settlement currency again for some nations and even seems to be evolving back into becoming the reserve currency of choice for some nations, as major fiat currencies are beset with issues.
After all, Alan Greenspan himself said when asked by a US Senate Banking committee in 1999 whether the US should sell its gold: “Gold still represents the ultimate form of payment in the world. Fiat money, in extremis, is accepted by nobody. Gold is always accepted.” Maybe that’s why central banks eventually became net buyers of gold again, in 2009, after being net sellers for decades. According to the World Gold Council central banks are buying more now than they ever did since the early 1960s: between 2010 and 2018, central bank net purchases have averaged close to 500 tonnes per year.
LB Now became an Authorized Representative of the Bullion Management Group Inc. (BMG) for Australia and New Zealand in 2009 and continues to use the BMG BullionBars program™ as the preferred bullion solution for all clients. Clients can either take delivery or keep their bullion bars in allocated and insured storage in many locations around the world.
LB Now bullion services are available to everyone. For more information on becoming an approved client to be able to purchase bullion at wholesale prices on the London market and opt for professional custodial services of your bullion, please contact us.
BMG has an 16 year history of ethical management and industry compliance, and partners with some of the bullion industry’s most trusted businesses, including BDO Canada LLP and The Bank of Nova Scotia. BMG is an Associate member of the London Bullion Market Association (LBMA), a validation only bestowed upon firms that meet the LBMA’s rigorous industry standards on refining, reliable trading and Good Delivery practices. For the past decade, BMG’s president, Nick Barisheff, has focused on the world of precious metals and the benefits available to those who hold physical bullion. Widely recognized as an international bullion expert, Nick has written numerous articles on bullion and current market trends and his first book, $10,000 Gold: Why Gold’s Inevitable Rise is the Investor’s Safe Haven, is a must-read for those interested in the concept of sound money and the portfolio-preserving power of gold. BMG’s BullionBars program allows clients worldwide, through the use of a unique, secure and transparent process, to easily purchase and store individual bars of investment-grade Good Delivery gold, silver and platinum bullion and coins with a purity guarantee from the Royal Canadian Mint. Worldwide storage is available in LBMA-member vaults within the traditional banking system via Scotiabank, and outside the traditional banking system via Brink’s. BMG offers titled ownership of each product purchased and stored with BMG, and bullion is stored on an allocated and insured basis within LBMA-member vaults. Their unique business process demonstrates their commitment to transparency, security, integrity and exceptional service. That is the BMG difference. To learn more about their bullion ownership safeguards, contact us.