Welcome to illuminati silver, we tell you
the truth about silver. Today is Wednesday 23rd March 2016 and we
are briefly explaining why it is important to own physical gold and silver.
Many of us in the gold and silver community are aware of the benefits of owning physical
gold and silver, here are 5 main reasons, though there are many more:
• You can protect your savings against the currency devaluations.
• They act as a hedge against inflation/hyperinflation • You can protect yourself should a severe
banking crisis occur and you cannot access your money, owning small denominations of
gold and silver will give you something to trade with.
• They generally are quite liquid and can easily be turned into cash.
• You have no counterparty risk with gold and silver (contrary to paper assets where
there is always a counterparty risk involved) Now this latter point is extremely important.
Here is a brief definition of counterparty risk: “Counterparty risk is the risk to
each party of a contract that the counterparty will not live up to its contractual obligations.”
So for example, you may hold your cash in the bank and should the bank fail and go bust,
you may not receive your money back. Similarly with company shares and bonds, should the
company fail or fraud occurs, these assets may indeed become worthless. Many derivative
type investments hold considerable counterparty risks, especially as there may be many parties
to such an asset. What struck us though as a more recent phenomenon,
where counterparty risk becomes even more tangible is the issue of cyber warfare or
just plain old computer hacking. For example it was reported back in September
2015 that a group of Russian hackers, most notably the Turla APT (Advanced Persistent
Threat) was hijacking commercial satellites to:
• Siphon sensitive data from government, military, diplomatic, research and educational
organisations in the United States and Europe. • Hide their command-and-control servers
from law enforcement agencies. If they can do this, hacking into banks and
stock market computers and feeds may indeed prove relatively easy. Just imagine the carnage
that can be caused here. According to CNBC back in July and August
of last year, a report appeared stating: “U.S. officials tell NBC News that Russia
launched a “sophisticated cyberattack” against the Pentagon’s Joint Staff unclassified email
system, which has been shut down and taken offline for nearly two weeks.”
It’s not just the Russians one has to be cautious of. According to Business Insider
in July 2015, More than 20 million people had their personal information stolen when
the Office of Personnel Management (OPM) servers were breached by Chinese hackers.
Even more recently, in fact just a few hours ago, it has been reported that Bangladesh
Bank (BB) – the country’s Central Bank- is considering filing a lawsuit against the Federal
Reserve Bank of New York after cyber hackers stole $81m from its account.
These are just some of the issues we know about. It’s not beyond the realm of possibility
that one can have ones bank account cleared of all funds; that stock market trades may
be forced to stop should hackers gain access to pricing mechanisms; chaos could occur if
cash machines are hacked and stop working and a whole plethora of other events which
may in fact occur. So the key message is simple, hold a manageable
level of cash reserves outside the banking system and also own physical gold and silver
and store them in a safe location that can be accessed with a degree of ease.
These considerations are important especially as more of our currency and wealth becomes
digitised. We hope you have found this video interesting
and informative and if so, please give it a thumb up and share it on twitter. Also kindly
visit our website at www.illuminatisilver.com and look at our Facebook page which is updated
daily at www.facebook.com/illuminatisilver Disclaimer: Illuminati Silver owners come from a background
of Banking, International Wealth Management and Economics. Having now retired from these
worlds we are not qualified to give investment advice. Therefore, this and other productions
must not be deemed to be giving such advice and merely represent the personal views of