Why Gold?
Scarcity. Endurance. Independence.
The Problem
The world has a balance sheet problem that cannot be solved without aligning assets and liabilities.
The core issue is too much debt. Excessive debt caused the last global financial crisis and while multi-trillion dollar bailouts averted a systemic collapse, the over-indebtedness has never been addressed. In fact, the global median debt to GDP ratio, a measure of systemic leverage, is now higher than ever and continues to grow.
With debt levels and asset prices still near historic highs, real rates deeply negative, and geopolitics in flux, the global financial system has never been more vulnerable. Add anemic growth, rising inequality, aging population, right and left populism, deep divisiveness, etc. and the risks are existential.
There are only three ways to fix excessive debt - pay it down, default and restructure or inflate it away. This reconciliation can only happen with capital destruction via inflation or deflation, as the debt cannot be paid down under any reasonable scenario. Since every $1 of debt is someone’s asset, the only question is who and when will have to bear the brunt of the inevitable adjustments.
Why Gold?
Gold is the best available source of systemic protection.
The above framework poses two challenges: (1) how to protect capital and (2) how to profit from the fallout.
The lessons of history suggest that the need for Plan B has not been higher in our lifetime and yet, investors’ hedges continue to rely on instruments exposed to systemic risks they are meant to hedge. This approach defies common sense.
We believe that the best defense is a good offense - the most effective way to protect capital is to have backup plans that empower one to buy when everyone is forced to sell. This requires access to fully independent liquidity that only physical gold can provide.
Just as backup generators must be independent from the power grid, financial backup plans must be independent from the financial system.
Why Physical Gold?
Only physical gold combines inverse correlation to confidence, complete independence from financial counterparties, and global liquidity under all market conditions.
Gold possesses a combination of key properties essential to all investors:
Independence: no reliance on the financial system or networks; no
counterparty riskScarcity: mining only adds ~1.5% pa to existing stock and no one can “print” more
Endurance: indestructible; gold does not default and has never been worthless
Universal Liquidity: globally negotiable under all market conditions
Cyber Immunity: being the only tangible liquid financial asset, gold is unhackable
Feasibility: portable, divisible, highly valuable and fungible
To benefit from golds’ properties, one must be independent from financial counterparties. TBR accomplishes just that by providing a professionally managed, legally compliant solution for owning physical gold.