Gold is the answer to financial crisis

This was the message from Louis Boulanger, founder of LB Now, to the CFA Society this week. He believed it was "imprudent" to ignore gold as a currency and said that after years of irresponsible money creation the global financial system is in serious trouble, trouble that "throwing more money at" can ultimately not fix.

Boulanger argued the idea that the gold standard is a "barbarous relic" is a myth that needs debunking and said the world is in serious need of monetary reform. In the meantime, gold has an important role to play in prudent wealth management. "Fiat" money - that declared by a Government to be legal tender - is in crisis and is "dying", with all fiat currencies being devalued because there is "too much of it" being created, he said.

Boulanger described the world as being in "unchartered territory" and disagreed with the idea that the financial crisis - which he described as a monetary crisis - was dissipating.

"I don't believe for a minute the worst is over, because of the nature of this crisis and because of how it's being papered over," he said.

In order to protect wealth in this environment, a strategy of not investing all assets was required, with Boulanger arguing that bullion is the only asset to have successfully protected wealth in past systemic crises. The amount of bullion purchased should correlate to the investor's faith in central bankers, he suggested.

Boulanger also stated that beliefs such as the idea that Government guarantees are as good as gold; that Governments cannot default on their debt; and that inflation is dead or no longer a worry, are all false.  He also argued that quantative easing is a form of default in itself.

"It may not technically be default, but it's a foot in the door towards that," he said.

Boulanger is also an authorised dealer for BMG BullionBars.

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