Over the course of history, physical gold has proven to be an ideal reserve asset because it does not rely on financial institutions and markets. In the current environment, physical gold provides a unique source of portfolio protection and purchasing power preservation. Because paper gold (gold backed securities) relies on financial institutions and markets, it cannot provide the protection and the benefits of physical gold. Only physical gold can offer a cost effective “insurance” option with a potentially outsized payoff that does not rely on anyone’s promise to perform.


Gold possesses a combination of five key properties essential to investors:

  • Universal Liquidity - globally accepted, internationally recognized medium of exchange, and liquid at transparent prices
  • Independence - independent from the banking systems and capital markets; no counterparty risk; gold does not default or get restructured
  • Lasting Nature - virtually indestructible, cannot be debased and has never been worthless
  • Feasibility - portable, highly valuable, fungible
  • Diversification Value - inverse correlation to confidence and virtually no correlation to stocks

Of all investable assets, only physical gold has this combination of properties and it is these properties that are a source of diversification relative to financial assets. 


Neither the information, nor any opinion contained in this message constitutes a solicitation or offer by TERA Management and/or Tocqueville Bullion Reserve L.P. or any affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. Any data included in this communication is obtained from sources believed to be reliable but cannot be guaranteed by TERA Management and/or Tocqueville Bullion Reserve L.P. Any opinions expressed herein are those of the TERA Management and/or Tocqueville Bullion Reserve L.P. and cannot be solely relied upon as representations.

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