As we all feel the sting of rising inflation across goods and services, it’s crucial to recognize that only governments stand to benefit from this situation. The gradual erosion of currency value, which once went largely unnoticed, is now at the forefront of global discussions, dominating news channels worldwide.


Understanding who controls the value of our currency, what has caused inflation, and how it can be addressed is essential. Over the past two decades, a combination of low-interest rates and excessive borrowing has resulted in Canada’s runaway housing bubble and, most notably, the surge in inflation. So, how does this translate into inflation acting as a stealth tax?


As the value of the dollar declines, driven by sustained periods of low-interest rates, the cost of goods and services rises, along with the amount we pay in sales taxes (PST & GST) and now the Carbon Tax. In short, we end up spending more while earning the same. This scenario plays out in an environment of low-interest rates, which flood the market with dollars. Central banks create money and inject it into the system, increasing the money supply and diminishing the value of each dollar printed. Conversely, when interest rates rise, fewer dollars are created, which leads to a reduction in the money supply. This, in turn, requires fewer dollars to buy goods and services.
This is a simplified explanation of how sound monetary policy works to prevent inflation and rising asset prices.


Protecting Your Purchasing Power: Why Gold and Silver Matter
To counter the erosion of our purchasing power, the most effective strategy is to add gold and silver to your portfolio. Without diving into the technicalities of how gold and silver preserve and even create wealth, consider this: Physical gold and silver come with no counterparty risk, they are universally liquid, and their value is driven by supply and demand. You have two ownership options: physical delivery or stored product. One is more liquid and less expensive to own than the other, but your personal preferences will likely dictate your choice. Ultimately, the decision should be based on liquidity.
By incorporating gold or silver into your assets, you control a physical monetary metal that has historically moved counter to the US dollar and, under certain circumstances, has even appreciated alongside it. For Canadians, this is especially attractive during times of high or rising inflation.


Gold & Silver Price (5-Year CAD Overview)

• 2018 – Gold: $1,742.30 | Silver: $20.89
• 2019 – Gold: $1,600.90 | Silver: $20.11
• 2020 – Gold: $1,950.00 | Silver: $26.89
• 2021 – Gold: $2,425.70 | Silver: $31.92
• 2022 – Gold: $2,293.20 | Silver: $28.74
• 2023 -  Gold: $2473.90  | Silver: $30.40

For more information on how to own precious metals, visit www.internationalgoldvault.com.
Written by – Rob McInerney

The world is changing rapidly, and we must strive to stay ahead. Money, as we know it, is evolving by the minute, and inflation has significantly eroded our purchasing power, increasing the demand for wealth-preservation assets.
Some investors have already shifted part of their wealth into physical bullion, cryptocurrencies, or other alternatives to safeguard the value of what they've worked hard to build. Whatever asset you choose, it’s crucial to ensure that it maintains a high level of liquidity.
With over 15 years of experience in the precious metals industry, I can confidently say that vaulted gold and silver provide unparalleled liquidity, even in times of crisis.


The Risks of "Outside" Product
"Outside" product refers to bullion that has been withdrawn from approved depositories and delivered to an individual or institution, meaning it is no longer stored in a secure, recognized facility. Once this product leaves the vault, the owner assumes full responsibility for its safety and integrity. This product becomes subject to additional processes, such as assays, fees, and potential delays.
If you choose to take delivery of bullion, consider it part of your estate, with no intention to trade or profit from it in the short term. Outside product generally has reduced liquidity compared to vaulted product and takes on a different role.
For example, the Perth Mint no longer accepts outside product for storage. Instead, you must sell your bullion back to them at spot price minus assay fees and then purchase new bullion at the current premium to store it. As precious metals prices rise, I believe many storage facilities worldwide will impose similar rules for outside product.
If your goal is to preserve wealth and maintain liquidity, ensure your bullion is stored in a legitimate, secure facility with market access. Failing to do so could result in costly mistakes.


Need Help?
If you have any questions about this post or need clarification, feel free to contact us. We are here to assist with vaulting, delivery, or financing your bullion.
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Written by: Rob McInerney
International Gold Vault Ltd.