We have seen downgrades on Barrick Gold (ABX) for years. Many keep looking lower and lower, with som...
The History of Gold
05/30/2014 9:23 am EST
From 1933 up until 1974, it was illegal to own gold bullion in the US. But now that it's legal, Anthem Blanchard shares some of the benefits of ownership and ways to buy it.
SPEAKER: Hi, I’m here today with Anthem Blanchard, CEO and founder of Anthem Vault and we’re going to talk a little bit about how gold used to work and how it became legal and a little bit of the history behind it so what’s this history with gold being legal to own? Where did that start?
ANTHEM BLANCHARD: Well, actually so it was illegal from 1933 up through the end of 1974, it was illegal for US citizens to own physical gold bullion so they could own some collector’s coins but they couldn’t own actual bullion bar of gold and so something that my father actually really thought was outrageous and he held press conferences around the country and he paid for a plane to fly over President Nixon’s inauguration that said legalize gold and finally story goes that President Ford actually saw him on a national televised press conference and didn’t even realize that gold was illegal and a couple months later, that he actually issued an executor order to rescind the prior executive order that was 40 years earlier.
SPEAKER: Now your father I guess you learned about gold through him and he used to run a conference down in New Orleans.
ANTHEM BLANCHARD: Correct, yes, the New Orleans Investment Conference and he actually speaking with the founder of the MoneyShow, Kim, she actually shed some information and light that actually the MoneyShow is apparently somewhat geared and somewhat thought of as the New Orleans Investment Conference, right exactly, inspiration taken from that so really amazing.
SPEAKER: What are the different things that you can do with gold these days, how can you own it yourself?
ANTHEM BLANCHARD: Well, gold is money so it’s the ultimate form of savings. There’s no credit risk so there’s no one else’s liability at least there shouldn’t be so you can own it in a bunch of different forms, you can own it in coin form and coin form you have to really make sure you understand if it’s a rarity or a novelty factor versus say a bullion where most of the coin is actually based on the value of the metal content.
SPEAKER: And why would somebody or why should somebody consider owning gold? What’s in it for an investor? What do they need to do now?
ANTHEM BLANCHARD: It’s a great diversification play. It’s an ultimate form of saving so especially when interest rates are negative like they are right now and really low, gold tends to outperform that environment. Also when credit risk is perceived to be higher, there’s pressure on the financial institutions, gold does really well so with most of your stocks in your portfolio, it’s typically geared toward investments going up and that’s great but when investments don’t go up, then gold is a really great hedge against that so provides you with some insurance for your portfolio.
SPEAKER: Thank you so much, Anthem.
ANTHEM BLANCHARD: Thank you.
SPEAKER: Thanks for joining us.
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