GoldSafe, created during a time of global and financial insecurity. The Founders; business people from Commodities, Forex, Derivatives, and many years spent working in the City of London. Their collective aim; to develop a wealth & asset protection model to withstand the turmoil our world has experienced historically for years. Financial crisis, international conflict and terrorism […]
The financial crisis which enveloped Europe caught many of us, and no matter how we twisted and turned, we were unable to escape its relentless march through the very fabric of our lives. Often it felt as if there was one rule for them, the elite, the old guard, and no rule to protect us. The financial management of the problem was always designed to save the giants and not the individual. Countries and governments got it wrong and austerity was ours to bear.
As intelligent and resourceful people we applied ourselves to the problem; how to develop a credible scheme to protect cash, our own money. How to secure it against time, inflation, deflation and crisis. It was imperative we found a secure home for our capital, the requirement to protect capital was paramount and had to be placed above yield or income. And yet it was essential in a long term solution that the capital would have to be sufficiently liquid and realisable, so as to afford us the ability to earn money and take advantage of opportunity.
With the run on cash, and currency fluctuating heavily on endless negative data, we realised that property or some form of investment would be the best option to preserve capital. However, bonds, securities and stocks were definitely not attractive. Real estate afforded no better alternative and came with its own raft of problems, see (Gold vs Property) and location was another issue, where to buy in the world.
Finite commodities were always an option, but again dependent upon industrial performance and storage issues in the long term. A particular commodity with monetary qualities and portability was shining through and the elementary choice was made, although we realised we had to find a way to make the product work, as we intended to hold it for the long term. Its long term performance was the attraction and whether looking at the 2000-year curve or the 15-year the yellow metal has always looked good.
Taking into consideration all of the factors bearing heavily on cash and with many years of historical data to analyse, there was a natural choice to protect cash, convert it to gold.
Money, the thing under pressure today at the bank is only fiat money and is currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat money is derived from the relationship between supply and demand rather than the value of the material that the money is made of. Historically, most currencies were based on physical commodities such as gold or silver, but fiat money is based solely on faith. Fiat is the Latin word for “it shall be”. Because fiat money is not linked to physical reserves, it risks becoming worthless due to hyperinflation. If people lose faith in a nation’s paper currency, like the dollar bill, the money will no longer hold any value
We also noted that some of the richest individuals on the planet, George Soros and Stan Druckenmiller have considerable gold holdings. In fact, as much and possibly over a third of their wealth is gold. We were aware these men had sufficient income from many other sources and holding gold as a last reserve made sense. However, we considered it unlikely that such prudent men would not let such a large percentage of their wealth sit idly by and just rely on it as a resource of last resort.
On closer inspection it was clear what they did. They had adopted the model of central banks historically. Unable back in the day to just print money ad infinitum, central banks once held sufficient bullion and other tangible commodities or assets to actually meet the value of currency they put into circulation. In other words, the paper was supported by gold value. This is clearly the case for these men, and they have cash flow linked to their bullion, should the require it for opportunity in the market place.
We also know that in 2012 the LCH Clearnet, the world’s largest clearing house began accepting gold as security for margin. Prior to this only hard cash was acceptable, no matter how big or who you were. So gold really is just another currency, but one which goes up in value like a finite commodity. So we realised we needed to think like a central bank and use our gold like money as well as a capital asset.
The thing we had to find was something risk averse, which we could be directly involved with and made sense. The base rates at the central banks are at zero or thereabouts and in some cases negative. Money, cash, savings are not achieving anything in any bank, unless they are placed into some form of speculative investment attached to risk.
The risk to reward is relative; with limitless global business failure and political strife we were unable to find anything which offered us a realistic return with minimal risk. If it was to be a gamble then we decided we would prefer to go to the casino ourselves, rather than sit naively by while another threw the dice. This of course we did not do, we continued to work for something better.
Our approach to the bank is; we are only drawing some of your paper money against our real gold. The bank was actually going to improve their worth by entering into this contract with us. We could see we brought value and security to the bank, and accordingly it was extremely cost effective to simply draw down an alternative money from one account, while holding twice that amount in another account at the same branch. USD from our dollar account was in deficit, to about half the monetary value of our gold account.
Any bank which struggled to understand this concept will probably not last very long in the complex world of global finance.
The next course of action was to invest the cash into something which gave a return, with minimal risk. This was when we realised the opportunity which naturally occurred to us. The option of what currency we wanted against our gold was presented to us. We could take any major global commodity currency against it, and then redeem the account with any other major global commodity currency. Gold is quoted every day in all the majors, and naturally pegs itself to the strongest.
Currency management made sense and if done correctly was the way to generate income. We had to find and engage a currency manager. We did not want FX (foreign exchange trading) and we did not want leveraged transactions. All we required was the movement of our money on a one to one basis, unleveraged around the 8 major global commodity currencies to generate income.
Sending our money off to a hedge fund or entering into a complex financial product was not what we wanted. We needed it only to be managed on a discretionary basis around the world’s most liquid currencies, in a strategic and professional way. The global currency market is driven by numerous factors and we realised now that the market place was perhaps even more predictable for the right organisation.
Currency values rise and fall relative to other nations fiat money, and in relation to that nations performance economically. This is normal and driven by fundamentals, such as employment statics, crop yields, domestic and export output performances in manufacturing, construction, natural resources, mining and any number of quantifiable and measurable factors.
There was however one major unpredictable factor that always weighed heavily on currency value, and could by many be considered a false value, and is perhaps now missing from the table. Government’s control or heavily influence their central banks, and they were once able to manipulate the value of their currency to suit their own agenda’s at home. With global growth teetering on the edge of the precipice for the last 8 years and central banks with rates at zero or less, they are no longer able to manipulate the market in the way they used to at the behest of their bosses.
An election looming would be a good reason to play around with interest rates, to make short term gains in domestic popularity. Unfortunately, with everyone’s economies so finely balanced, all the major currencies are facing the same issues and the primary objective of the central banks is now to stave off a disaster, and so makes them more predictable and requires them to be driven by the fundamentals, as opposed to the whims of governments.
The founders of GoldSafe found the right currency manager for them. The organisation is based in Switzerland and is a very private and well managed firm, with a demonstrable track record of unleveraged performance, operating a highly technical contrarian currency management system in only USD, GBP, CHF, EUR, JPY, AUD, NZD and CAD. The firm Mercury AG ticked every box for GoldSafe and more.
The calculator we show on the home page gives a representation of what we were able to achieve with our choice, based on average historical data and guidance notes are herein as to how the numbers are achieved:
Enter the amount you would like to invest in the ‘investment value’ box and choose the ‘term of investment’ in years.
Gold against USD has average 362% over the last 15 years*, so therefore the annual capital growth base calculation model uses 362% as the total capital growth over 15 years. This equates to an average annual growth figure of 9% p.a. when compounded to the original asset value.
Goldsafe suggest a maximum of 60% of capital asset to be allocated to the Swiss Asset management team for the income generation program. The twenty one year average income for the Swiss Asset Manager is 16.9%. This figure is then adjusted to represent the return on the entire capital, although the entire capital is not allocated to the program. The annual rental yield therefore is expected to achieve over 10% of capital value p.a.
The total profits made are calculated and displayed in the profit field. And is the sum of the compounded annual revenue from Switzerland added to the average annual capital gold growth compounded, year on year.
The total return is then added to the original capital to demonstrate the value of the investor’s total stake at the end of the chosen term and appears in the final box, Total Value.
Reinvestment of the annual revenue and adjustment of capital asset value, to increase the 60% included in the scheme is a discretionary choice for the investor. The Investment program income may be drawn quarterly as cash or gold.
Generate annual revenue from your gold while it accumulates in value – It really is that simple.
*Figures quoted are available for review at Gold Price.org
The beginning of time and the universe are generally accepted as a singular event which took place 15 billion years ago, give or take a year. Stephen Hawkins theories are well presented and accepted by the majority of investors. Other schools of thought may have merit and the timeline may vary, but a singular event is conceded by all as the beginning.
Gold was already here, waiting for us in the ground when modern humans spread from Africa into Europe and Asia around 60,000 years ago. The Neolithic Revolution around 8,000 years BCE saw the development of agriculture, which drastically changed human lifestyle. Mesopotamia is the site of the earliest developments and has been identified as having inspired some of the most important developments in human history including the invention of the wheel, cursive script, astronomy, agriculture and for us at GoldSafe most importantly Mathematics. The basis of finance is the calculation of value and recording it.
The development of cities was synonymous with the rise of civilisation. Early civilisations rose first in lower Mesopotamia (3500BCE) followed by the Egyptian civilisation along the Nile (3000BCE). For nearly 3,000 years, ancient Egypt prospered as one the most progressive civilisations, characterized by advanced architecture, art and philosophy. Ancient Egyptians were fascinated by gold. In fact, Egypt’s association with gold reaches back more than 5,500 years, which makes the culture largely responsible for humans’ obsession with this precious metal.
Gold, chemical symbol Au (from the Latin aurum meaning ‘shining dawn’), is a precious metal which has been used since antiquity in the production of jewellery, coinage, sculpture, vessels and as a decoration for buildings, monuments and statues. In South America, gold was similarly worked by the Chavin civilization of Peru around 1200 BCE and gold casting was perfected by the Nazca society from 500 BCE. It was catching on everywhere and long before we had global communications.
Gold does not corrode and so it became a symbol of immortality and power in many ancient cultures. Its rarity and aesthetic qualities made it an ideal material for ruling classes to demonstrate their power and position. First found at surface level near rivers in Asia Minor such as the Pactolus in Lydia, gold was also mined underground from 2000 BCE by the Egyptians and later by the Romans in Africa, Portugal and Spain.
There is also evidence the Romans smelted gold particles from ores such as iron pyrites. Easily worked and mixed with other metals such as silver and copper to increase its strength and change its colour, gold was used for a wide range of purposes.
The value and beauty of gold made it an ideal material for particularly important political and religious objects such as crowns, sceptres, symbolic statues, libation vessels and votive offerings. Gold items were often buried with the dead as a symbol of the deceased’s status, and the conspicuous (and non-profitable) consumption of such a rare and valuable material must surely have been designed to impress. Perhaps the most famous example is the so-called mask of Agamemnon found at Mycenae.
In the Inca civilization of Peru gold was considered the sweat of the sun god Inti and so was used to manufacture all manner of objects of religious significance, especially masks and sun disks. In ancient Colombia gold was similarly revered for its lustre and association with the sun and in powdered form was used to cover the body of the future king in a lavish coronation ceremony which gave rise to the legend of El Dorado.
As a decorative covering, gold plate and gold leaf have been used to decorate shrines, temples, tombs, sarcophagi, statues, ornamental weapons and armour, ceramics, glassware and jewellery since Egyptian times. Perhaps the most famous example of gold leaf from antiquity is the death mask of King Tutankhamun, unearthed early this century (1922) by British archaeologists Howard Carter and Lord Carnarvon, after over 3,200 years hidden from the light. The lustre of the gold was unchanged from the day the mask was crafted.
Gold, with its malleability and incorruptibility, has also been used in dental work for over 3000 years. The Etruscans in the 7th century BCE used gold wire to fix in place substitute animal teeth. As thread, gold was also woven into fabrics. Gold has also been used in medicine, for example, Pliny in the 1st century BCE suggests gold should be applied to wounds as a defence to ‘magic potions’.
In more modern times the wealth of the richest man on earth is linked to gold. He died in the fourteenth century circa 1337, and was called Mansa Musa and was the king of Timbuktu. His recorded wealth is difficult to place an accurate number on. In the worlds top 10 rich list Bill Gates would feature at position 9 and in front of him come J. D. Rockefeller, A. Carnegie, bad boy Joe Stalin, Emperor Shenzong who ruled and empire with 30% of world GDP at the time. The man sitting in second place is Augustus Caesar.
Augustus Caesar, in charge of an empire that accounted for 25% to 30% of the world’s economic output, and according to Stanford history professor Ian Morris, Augustus at one point held personal wealth equivalent to one-fifth of his empire’s economy. That fortune would be the equivalent of about $4.6 trillion in 2014. “For a while,” Morris said “Augustus personally owned all of Egypt.” That’s hard to top.
Musa did and by some distance. Mansa Musa, the king of Timbuktu, is referred to as the wealthiest person in history. According to Ferrum College history professor Richard Smith, Musa’s West African kingdom was likely the largest producer of gold in the world at the time. Just how rich was Musa? There’s really no way to put an accurate number on his wealth. Records are scarce, if non-existent, and contemporary sources describe the king’s riches in terms that are impossible for the time.
Some tales of his famous pilgrimage to Mecca—during which Musa’s spending was so lavish that it caused a currency crisis in Egypt—mention dozens of camels each carrying hundreds of pounds of gold. (Smith says one year of Malian gold production probably generated about a ton.) Musa’s riches were so immense that people struggled to describe them.
This is the richest guy anyone has ever seen. Trying to find words to explain that figure is hard. There are pictures of him holding a scepter of gold on a throne of gold holding a cup of gold with a golden crown on his head. Imagine as much gold as you think a human being could possess and double it, that’s what all the accounts try to communicate. When no one can even comprehend your wealth it means you’re rich.
As difficult as it is to adjust for accurate wealth perception so historically, it is the constant of gold in our assumption on monetary values that makes it possible for the historians and the accountants to all agree, the guy with the most gold was the richest. The purchasing power of his capital assets and his financial durability in his changing world was underpinned by the most secure form of monetary wealth known to man…GOLD
The articles that will appear below are the premise of the writer. We have taken great pleasure from our own personal relationship with gold and the industries which surround it. It began for us in the sixties, and although on occasion we thought we took a few years out, it has been there subconsciously, in the background, shaping the course of our lives and yours for ever. And is still doing so.
So this space will be what we find from the past, what we discover tomorrow and hopefully where we are going.
GoldSafe rationale is you own physical gold. This methodology underpins the investment model and is key to the long term financial security of the GoldSafe client. There is no involvement with ETF’s, futures, derivatives contracts or paper gold of any kind. The owners of gold at GoldSafe own the physical metal in its entirety, un-leveraged, and ounce for ounce, and by ounce, or whatever mass denomination you choose, gram, kilo or tola.
Cost of storage and insurance are important to consider, these are the responsibility of the owner of the bullion. Fortunately the ratio of size to value is extremely good with gold, this makes the cost of storage in relation to value of asset extremely low. Unlike many other valuable properties, gold is extremely stable and inert. It does not tarnish or degrade over time and is very easy to store. Gold happily just sits quietly on the shelf accumulating in value over time.
The GoldSafe model is not limited any specific region and there are reciprocal relationships in place with most of the world’s established bullion depositories. And you can structure the Goldsafe model in the most geopolitical advantageous way for you the investor, to generate the optimum outcome.
Investing money in something can bring great reward, it can also bring great loss. The intelligent investor knows he will have to make choices and decisions to maintain his asset value and derive income from it. It is important to balance risk to reward and keep an eye on the horizon. At GoldSafe we have looked long and hard at the fundamental problems facing investors looking to generate income in the current market and maintain capital asset values. How to generate a reasonable return from an extremely safe investment is key to our the Goldsafe investment strategy and this is what separates it from the existing models available today. The initial process of conversion to gold removes the risk to capital from monetary interventions and currency wars during the current period of global political uncertainty. Cash at the bank in the current economic climate is now more vulnerable than it has ever been.
Gold has always surpassed the key underlying growth of property as a capital asset, what it has failed to do historically is generate revenue if you do nothing with it. It can often be excused this shortfall, as its capital growth often beats combined property yield plus capital growth, and there are no dilapidations to absorb. Ownership of the physical gold by the investor directly is key to the GoldSafe strategy.The GoldSafe unique approach to the storing of the gold in Dubai, or other suitable advantageous and secure vaults around the globe, enables the investor to receive annual income from ownership of the metal. Central Banks have long supported their capital issuance with gold reserves locked away deep in their vaults, and in the current economic climate a prudent investor in the GoldSafe model can enjoy the benefits once the exclusive premise of the Central Banks.
The investor’s monetary value is moved within the whole program on a 1 for 1 basis between the world’s 8 major global commodity currencies. Mercury has significant funds managed across USD, CHF, EUR, GBP, CAD, NZD, AUD and JPY. Mercury operates a completely un-leveraged contrarian trading program, and using strategic hedging and currency pairs has been able to generate a steady monetary growth. The company’s principal and founder was formerly head of FX at Credit Suisse London. The appointment was approved by the Bank of England and he was called on to execute state-currency interventions. Previous to that he ran the USD/Swiss desk at UBS and prior was senior FX dealer at Berliner Bank. And it all started at an FX desk for Scandinavian Bank in 1977, so it is a lifetime of foreign exchange, some 40 years of knowledge. Further information is available upon request. Mercury Forex AG is a Swiss registered, regulated and authorised company of discretionary contrarian FX Traders and qualified Asset Managers. Access to the program is restricted to Qualifying Investors as described in the FINMA Circular 08 / 8
SOS Children’s Villages work to prevent family breakdown and care for children who have lost parental care, or who risk losing it. They work with communities, partners and states to ensure that the rights of all children, in every society, are respected and fulfilled.
In particular they do extensive work to protect vulnerable children associated with the gold mining industry in Africa. As such it is incumbent upon the founders of GoldSafe to support such a charity and we encourage you to do the same.
1oz – It is rarer to find a one ounce nugget of gold than a five carat diamond.
175,000 tonnes – Less than 175,000 tonnes of gold has been mined since the beginning of civilisation.
21 metres cubed – All of the gold ever mined would fit into a crate of 21 metres cubed.
200 – Julius Caesar gave 200 gold coins to each of his soldiers from the spoils of war in defeating Gaul.
50 miles – One ounce of gold can be stretched to a length of 50 miles; the resulting wire would be just five microns wide.
4,600 tonnes – There are 147.3 million ounces – around 4,600 tonnes – of gold stored in the US Bullion Depository at Fort Knox.
9 metres square – One ounce of pure gold can be hammered into a single sheet nine metres square.
530,000 bars – The US Federal Reserve holds 6,700 tonnes of gold, in 530,000 gold bars. At its peak in 1973, the Fed stored more than 12,000 tonnes of monetary gold.
400 troy ounces – A “London Good Delivery Bar”, the standard unit of traded gold, is made from 400 troy ounces of gold.
79 – The atomic number of gold is 79, which means there are 79 protons in the nucleus of every atom metal.
2316 troy ounces – The largest ever true gold nugget weighted 2316 troy ounces when found at Moliagul in Australia in 1869. It was called the “Welcome Stranger”.
90% – Over 90 per cent of the world’s gold has been mined since the California Gold Rush.
80 cm – The largest gold coin ever created was cast by the Perth Mint in 2012. Weighing one tonne and measuring 80 cm in diameter, it surpassed the previous record, a 2007, C$1 million coin which was just 53 cm across.
1885 – While digging up stones to build a house, Australian miner George Harrison found gold ore near Johannesburg in 1885, beginning the South African gold rush.
31.103 grams– There are just over 31 grams in a troy ounce of gold.
11.2 million – If all of the existing gold in the world was pulled into a 5 micron thick wire, it could wrap around the world 11.2 million times.