Why physical gold?

People who occupy themselves with the issue of physical gold as an investment vehicle will usually be met with collective “shaking of heads” by friends, acquaintances and almost the entire financial sector. How can such a relic asset even be considered? Some of their arguments are even persuasive – which, however, is true for every other capital investment at close examination. Let us begin our considerations regarding physical gold with a quote:

Today, there is no government agency, that would pay for the payment promises of Alexander the Great, Julius Caesar, Louis XIV, Peter the Great, Napoleon or Hitler. They were powerful men in their time, but no bank will cash their checks today. If you take a gold bar, however, that once lay in their treasuries, you will receive its equivalent value anywhere in the world. The durability and universality of gold gives it a money-like authority, that no other money has.

William Rees-Mogg
former chief editor of the London Times