Our ownership of physical gold is motivated by two main considerations: 

First, to own a hard currency in reserve that adequately acts as a store of value. And second, to create a potential hedge against the myriad risks facing investors today. This includes the frailties of the global monetary and financial system, of which inflation is a manifestation; as well as geopolitical turmoil.

Over the years, we’ve become increasingly convinced that gold is arguably the most compelling form of hedge against such risks, as evidenced throughout history. This is due to its inherent characteristics, which can be summed by the notions of scarcity, permanence, and independence. In various ways, these properties enable gold to preserve its purchasing power over the long-term, and tend to make its price dynamics counter-cyclical.

As a result, we see gold as both a hard currency that we can hold in reserve and exchange for other assets as opportunities arise, as well as a permanent stabilizer and counterbalance to our portfolio. The vast majority of our exposure to precious metals takes the form of physical gold, which we complement with a much smaller amount of precious metals companies.