Once upon a time, 10,000 years ago, and ever since, gold has been a way to store buying power for future use. You get the gold now. Then later, when you need buying power, you sell the gold, for currency that will allow you to buy what you need, pay your rent, grocery, medical, or airline bill.
Gold coins were good for a very long time. But people are so clever and they found ways to clip them, drill them, shave them, and re-alloy them.
Gold ETF’s make sense in a world that does not change much. So you are pretty sure that when the buying power is needed, you will be situated in such a manner to liquidate your ETF’s and get currency to pay your bills. Same for gold mining stocks, same for gold bullion, same for GLD shares, same for iAU, same for puts on the Dollar.
Paper Bullion Bank Bill has gold right in the paper, and then on the paper is imprinted fluorescent taggants that can authenticate that bank bill with 100% reliability, speed, and assurance. So, it trades just like a greenback bank bill, with promises on it.
But this bill has promises on it, and promises kept in it.
It’s got one more thing than fiat paper money. Gold inside.
Take $10 million, buy Paper Bullion Bank Bill, maybe a stack of them. Put them in a physical custodial bank trust account.
Move to Napoli, where Love is King, or Perth, where you can sail all day, or Amsterdam where many excellent things are.
When you need to pay for anything, send a message “Sell some of my gold, and wire me the money in my local currency.”
The bank, can use a PBBB authentication machine the validate your Paper Bullion Bank Bills in a few minutes. It is not in a quandry. It need not hire a chemist, or an assay specialist, or a cuppolation lab. The machine will authenticate your gold. The bank can buy it in, or sell it to a broker, or dealer, and send you the Lire, or Kroners, or dollars or whatever you need. You get the London Gold Fix for that day.
Will this be a good gold trade for you?
It won’t be any kind of trade, good or bad. It’s not trade. PBBB’s are not for traders. They are maybe but most likely not for “investors”. They are for people who want some buying power in their golden years. They want this with no worries. They are not trading, investing, or thinking about the market. They are enjoying life. They are using their buying power.
PBBB’s are new, but the idea of old people using their buying power is not new.
The idea of gold as money, is here and now renewed.
If this idea makes sense to you, and you want to know more about it, please visit me at robertfentongary.com
And I hope you will buy my book “A Method to Authenticate Value Documents or Items”
Do well, be well, and bless you.