Precious metals

Interview Diplomatic World

More than 100 % of capital gain in one year with silver ingotsor how to secure and fructify your capital

Interview with the Director of Euporos, Swiss company, which aims to the international trade of precious metals (www.euporos.ch ). The purchasers can be delivered at home, take the article at the Company’s office, or ask for the secured storage in Switzerland. Diplomatic World presents Mr. Louis Schneider, administrateur

DW: Why to invest in precious metals?

The market of precious metals finds out the renewal since the bankruptcy of the Lehman Brothers on September 15th, 2008, which proved that the banking system was fallible. Three years later, those who trusted in government bonds know, henceforth, that even the State can go bankrupt. The fear of a collapse of the world financial system and of the inflation provokes changes of mentalities: the "safe haven” is not the State any more, but gold and also other precious metals: silver, palladium, platinum. This tendency will strengthen in the next months and years, as the situation will deteriorate because of the debt increase produced inevitably by the interest and compound interest rates.

Contrary to government or enterprise bonds, precious metals have no "counter risk part”, because neither gold nor silver can go bankrupt; they constitute in themselves an unchanging value since millenniums.
Unlike banknotes, precious metals are not affected by the inflation or monetary reform. One kilogram of gold will always remain one kilogram with its intrinsic value, whereas " the paper money will returnsooner or later to its intrinsic value: zero " (Voltaire). Since the XVth century, 609 currencies were removed from the circulation, among those 153 destroyed by the hyperinflation.

The investors who rely in precious metals realize impressive performances. In three years, the ounce of silver run from 10 to 45 dollars (+ 350 %) and the ounce of gold from 700 to 1900 dollars (+ 170 %). And this is only a foretaste, because the market is bullish in the medium and long term. Precious metals are, thus, a profit-making investment.

It is true that the daily price of silver, and, to a lesser extent, that of gold, can vary considerably, but this daily "volatility" does not prevent that, on average annual rate, the price rises strongly and durably. That is why an investment in the medium and long term is nowise affected by the risk of the daily volatility.

DW: What is the advantage to hold precious metals in the form of ingots?

The stock exchange of raw materials COMEX in New York, which sets the pace all over the world, is incapable to deliver all futures coming to expiration, because its stocks of gold and silver represent only a part of the global volume of the transactions. The same ingot is sold more than 50 times on paper! As long as the speculators content with gathering their profits in dollars, this "fractional reserve" of metals can be enough, but if too many persons at the same time require the physical delivery of the metal, this stock exchange should declare forfeiture. This system of “fractional reserve” is also practiced by certain ETF (exchange-traded funds).

As there are many more certificates of gold or silver detention than of really existing physical ingots, it would be careless to trust these random papers. Consequently, EUPOROS refuses by honesty to sell to its customers other things than the real ingots and the real pieces.

DW: Why is the silver lesspopular than the gold, while it israrer and its price does not stopincreasing?

Because in the collective unconscious,gold has much more value than silver, forexample, a golden jewel is more preciousthan its silver equivalent. Even somebodywho prefers the color of silver to goldwill buy white gold rather than silver. Thesecond reason: many persons ignore the existenceof silver in the form of ingots. All theTV commercials strengthen their ignorance,speaking only about gold.

Here is an advice to benefit from this ignoranceof others. When everybody wants to buythe same product, they overpay its value. Onthe contrary, when few investors are interested,the product could be bought at a giveawayprice. Silver is an underestimated investment.Regarding the whole population, onlysome warned persons hoard it. Consequently,the value of silver is widely underestimated.

DW: What about the today’smining extraction of preciousmetals? Are the stocks exhaustedor do the reserves still remainsufficient to answer, in particular,the Asian demand?

Even if the production declines, gold reservesremain important (5 billion ounces), asgold is essentially hoarded. On the other hand,silver is industrially consumed and therefore,the reserves (less than one billion ounces)empty at high speeds. We consider that withthe rhythm where the industry uses silver tomake cars, computers, mobile phones, solarpanels, etc., the world reserves will fall to zeroby 2015-2016.

But it is also necessary to consider anotherparameter: the demand of investors, in particular,from Asia. The Chinese and the Indianstraditionally like gold. However, the increaseof the price of gold obliges, henceforth, manyAsians to fall back to less expensive metalsthan silver is. And all this fast-growing Asiandemand decreases considerably the reservesremaining available for the industry. The priceswill, thus, explode in the short term.

DW: Does the scientific progressrisk reducing to nothing the useof the silver?

We do not think so, because this metal hasphysical properties (conductivity, reflection)which remain it irreplaceable. The scientificdiscoveries, far from reducing the demand,will even make it grow. Its bactericidal propertyserves in new medical applications. Its integrationis experimented in the clothing textilesaccording to its anti-transpiration virtue.To assure the traceability of products, a silverbasedmicrochip (RFID) will be implanted inany article sold in the supermarkets and evenin every bill of new-generation banks.

DW: Do precious stones(diamonds, sapphires, ruby)constitute a good investmenttoday?

A magnificent adornment will certainlyplease the one who carry it. It means that, byacquiring precious stones, you will especiallyprovide the jeweler with work, who takesadvantage of the difference between its saleprice and the price of the old jewels whichhe acquires. Besides, you risk to be duped, ifWorld reserves of gold and silverin 1900-2025 (billion ounces) you are not capable to estimate yourself thequality of a precious stone.

DW: What about investments in the other precious metals, palladium and platinum? Do weobserve a rise of their respectiveprices?

These are metals with industrial use (vehiclecatalysts, computer components) and their pricehas increased a lot since 2008, because of thegovernmental programs aimed to re-launch thecar industry (“cash primes" to those who destroyedtheir old car in order to buy a new one).Now this stimulus came to an end and the fallof car sales will be even deeper as consumershave already anticipated their purchase at themoment when they could still obtain the prime.Plus the austerity plans launching in manycountries in 2011-2012: restrictive measuresslow down the consumption, consequently,the production and the demand of palladiumand platinum. The price of these two preciousmetals will have a poor performance during thecoming recession. The situation is comparableto the "Great Depression" of 1929, when thecar industry was particularly stricken.

DW: In view of strong technological development, would not it be judicious toinvest in chemical elements presented in tiny quantities, called "rareearth elements"?

Individuals can hardlyenter this opaque market,where the transactionsare concluded exclusivelybetween mining companiesand industrial societies. Wherewill you get germanium or seleniumby yourself, and how to find a purchaser then?

Rare earth elements consumed by industrieswill be exhausted in the more or less nearfuture. A group of geologists appointed bythe European Union concluded that amongthese chemical elements, the one who willdisappear first will be the… silver! Bet on therarest of the rare earth elements! Furthermore,silver has the exclusive advantage to bethe only rare element exchangeable easily tomoney!

DW: How did you cometo the idea to create Euporos and whatdoes Euporos mean?

EUPOROS: The triggerelement was the bankruptcyof Lehman Brothers. Ourfounder wanted to oppose to thewild ultra-capitalist system, basedon fraud and abuse of trust committed against the savers and the workers: to offer thepossibility to everyone to protect his savings bysuggesting them to invest in physical metalswithout risks. If this investment becomes moreand more profitable, that’s better, but the firstpurpose is that our customers pass throughthe crisis without being ruined by numerous"Madoff" of the financial world.

That’s why we chose the Greek adjective" euporos ", because it qualifies perfectly ourcustomers who are "industrious, fortunateand ingenious".

DW: Is it easier for a company,such as Euporos, to settle down in Switzerland that in the rest of Europe?

The Helvetian legislation and tax systemare generally favorable to the start-up of newbusinesses. However, to create commerceof precious metals is very difficult. A severeprocedure of approval needs to be undergoneto make sure that the dealer will supplya service of irreproachable quality. Then, weare annually controlled. Switzerland offers usan outfit of excellent service providers (foundries,banks, telecommunications, insurers)and highly qualified staff. The environment isthus optimal, even if the installation processis complex.

DW: What are the assetsof Euporos regarding your concurrent?

We are capable to deliver big quantities ofsilver (and of gold); that is why we have thereputation to be "THE specialist of the physicalmoney". We deliver very quickly all overthe world (with FedEx, first world carrier) andthe purchaser benefits of the total free-ofchargeinsurance during the transportation ofhis good.

Our customers are pleasantly surprised bythe quality of listening and the professionalismof our advice (free hotline), the modestexpenses of storage, our reactivity, our aftersalesfollow-up and, especially, our big discretion.

DW: Question of reliability,where are you situated?

Our products are controlled by the State.

All the storage orders are stored entirelyphysically. So, we distance ourselves frommost of the competitors who fraud theircustomers by storing physically only a part ofthe global volume of entrusted deposits, butcollecting expenses on the whole set.

Each of our depositors possesses the ingotsallocated to him only, while on the contrary,at certain concurrent companies, depositorsdetain only some unallocated paper-metal, itmeans, simple debt obligations susceptible tobe worth nothing in case of bankruptcy of theagent.

Our company is controlled by l’Organisme d’autorégulation des gérants de patrimoine (OAR-G, Self-regulatory Organization of Financial Advisors) and by external revisers, thatguarantees a total transparency and an impeccablemanagement.

DW: What are the advantages ofstoring ingots in Switzerland incomparison with other European countries?

The political stability and security reassureour depositors, who also benefit from a lowVAT rate (8 %) on silver (and no VAT on gold).For example, a French will save 11,6 % on theVAT and a Belgian 13 %.

DW: What advice can you giveto our readers in view of marketinstability?

To invest massively in precious metals have an attractive future. Silver is more affordablethan gold and it has an enormous catch-up potential.

To avoid stock exchanges, which will continueto go down with regard to preciousmetals, because we entered the recession.

To beware of some stones pretending tohave a sure value, but which, in times of crisis,do not find easily solvent purchasers ready topay the full price. It is evident that the governmentsconfronted with abyssal budget deficitswill try to bail out by taxing more the owners.If the interest rates rose, the real estate rateswould fall, because the borrowers would havedifficulty in financing increased interest ratesof an augmented welfare price.

To remove the paper money deposited atthe bank, which lose constantly and stronglyits purchasing power.

And finally, to avoid government bonds,because they expose you at the risk of nonpayment,a risk which deteriorates every day.

DW: You say that you makeeasier the purchase of preciousmetals, isn’t it?

We put on our web site a successful andsecure "customer account", which allowsordering easily and at a distance. Our investmentadvisers answer quickly e-mails and ourphone reception is there to advise and help people. We are not simply sellers, because we arealso anxious to inform and advise. Our siteproposes numerous feature articles, focusingon gold, silver and the current conjuncture.The main dossier entitled "Why to invest?” isread more than 2000 times per month.

Author : Diplomatic World
Source : www.diplomatic-world.com

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