Gold is a net winner over the next 12-36 months due to declining demand for sovereign debt; keep physical metals for defense.

I know that we always talk about gold and silver. We'll get to that in a moment, but what percentage are you allocating here?

So, while we hedge with physical metals, I know that you described in your memo this as the best position for gold that you have seen in over 50 years of trading the metal. It is clear that you have not traded in it for 50 years, but in the 50-year history of trading, what makes this current environment fundamentally different from previous gold bull markets ?

Yes, our company has been trading metals for 50 years; it is a family business. In fact, we have never seen a situation like this before, where central banks provide the minimum for trading and investors test the ceiling.

Therefore, I believe that investors are fundamentally rethinking fixed income, and especially sovereign debt. As demand for sovereign debt as a safe haven declines, you are facing a kind of negative feedback loop.

Higher interest rates and greater pressure on countries. Gold is the next net winner. Gold and silver are the net winners over the next 12, 24 and 36 months. Therefore, I would keep the physical metals if you are looking for a defensive strategy.

Therefore, I believe that for an investor looking at the safety aspects of physical metals, gold is the superior metal.