Currencies, in which all investments are denominated, are being competitively debased. This is reflected in increasing central bank purchases of gold bullion and a rising price for the yellow monetary metal in all fiat currencies.  This signals that something is profoundly wrong with our currencies and global financial system. Bullion ownership offers protection from these systemic risks. LB Now facilitates the wholesale purchase and sale of bullion on the London market for clients. Professional custodial services are also available.

Gold and silver are not just commodities; they are monetary metals. Bullion, in other words, is money. But unlike fiat currencies, in which all investments are denominated, gold and silver bullion represent money that cannot be created out of thin air by central banks. In other words, holding bullion is like holding cash. But, unlike fiat money or investments, bullion is an asset you can own which is uniquely not also somebody else’s liability as you own it.

J.P. Morgan himself said it best when he was asked by a US Congressional committee in 1912 what was the role of gold. He said: “Gold is money. Everything else is credit.”  How times have changed! Most people now seem to have forgotten or are unaware that gold is money. Yet, gold is becoming a trade settlement currency again for some nations and even seems to be evolving back into becoming a reserve asset of choice for some nations, as major fiat currencies including the US dollar are beset with issues.

After all, Alan Greenspan himself said when asked by a US Senate Banking committee in 1999 whether the US should sell its gold: “Gold still represents the ultimate form of payment in the world. Fiat money, in extremis, is accepted by nobody. Gold is always accepted.”  Maybe that’s why central banks eventually became net buyers of gold again, in 2009, after being net sellers for decades. According to the World Gold Council, central bank demand for gold hit a 55-year record in 2022, totaling 1,082 tonnes, the highest level of buying since 1967!

An increasingly complex geopolitical and financial environment is making gold reserves management more relevant than ever for sovereign nations. In 2023, central banks added 1,037 tonnes of gold – the second highest annual purchase in history – following a record high of 1,082 tonnes in 2022. Following these record numbers, gold clearly continues to be viewed favorably by central banks as a reserve asset, as the next chart shows. 2024 could prove to be a new record high year of gold purchases by central banks around the world.

LB Now became an Authorized Bullion Dealer with access to the London wholesale market in 2009 and continues to facilitate the purchase, custody and sale of gold and silver bullion bars and coins for clients at wholesale prices. Clients can either take delivery or keep their bullion in allocated and insured storage in locations around the world.

LB Now bullion services are available to everyone. For more information on becoming an approved client to be able to purchase bullion at wholesale prices on the London market and opt for professional custodial services of your bullion, please contact us.