Tuesday, August 13, 2013

Worst case scenario and gold confiscation

Let’s take the worst-case scenario. We have either a social unrest, a revolution, or war. Governments decide, “Oh, the price of gold is going up substantially, let’s take it away from people.” In other words, you expropriate it. I think it will, at that stage, not matter very much where you hold your gold, except it may matter where you hold your gold in terms of sovereign state.

My sense is that the Asian countries are less likely to take the gold away than Western countries.