Gold Cross Sovereign Currency

Gold Cross Sovereign Currency

by Julien B. Booth

April 15, 2020

I hope this note finds you safe.  Thank Goodness for the Carolina Blue skies.

Our position in and has always been about the soundness of an underlying currency.  Gold is the only currency that provides liquidity across ALL sovereign currencies.  It is unique, Biblical if you will.  The QE trend has been going on in earnest since 2009, but this crisis is a tectonic shift in money creation.

I believe the graphic below is effective at helping one understand how our financial system has morphed – mostly due to the “financial-lization” of nearly everything. The obscene buybacks of the past 5 years (using debt) are proving a nightmare for many corporations. This graphic represents the relative size of each of these “assets”.

As self-proclaimed “sticks and bricks” investors, we cherish real, tangible assets.

Have a wonderful Wednesday.