Bullion is not an investment. Gold and silver are not just commodities; they are monetary metals. Bullion, in other words, is money. But unlike currencies, gold and silver bullion is money that cannot be created out of thin air by central banks. In other words, holding bullion is like holding cash. But, unlike paper money or currencies, bullion is an asset which is nobody else’s liability.

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 1,136 tonnes, the highest level of buying since 1967!

Geopolitical uncertainty and high inflation were highlighted by central banks as key reasons for holding gold. Buying was primarily from emerging market countries, including Russia and China.

LB Now became the Authorized Bullion Dealer on 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.