Since the financial crisis of 2008, global debt has exploded. The US alone now has a national debt of over $34 trillion, with an annual deficit of almost $2 trillion. The situation in Europe is no better: France, Italy, and even Germany have finally abandoned the principle of sound fiscal management in the wake of the coronavirus and energy crises. Politicians seem unable or unwilling to curb the expansive state apparatus.
The consequence: Markets are increasingly pricing in the fact that future consolidation will come through currency devaluation and financial repression – not through honest austerity policies. In this context, precious metals, especially gold and silver, serve as a safe haven against the creeping expropriation tool of inflation.
The Austrian School’s view
The Austrian School does not view money as a neutral medium of exchange, but as a central element of economic calculation in a market economy. Ludwig von Mises and Murray Rothbard always emphasized that inflationary paper money leads to systemic distortions – from artificially low interest rates to misallocation of capital (Mises: “malinvestments”) and an ever-increasing debt spiral.
In a paper money system, debt is politically attractive because, unlike taxes, it provokes less immediate resistance. That is why wars are financed by printing money rather than by raising taxes. But this temporary “source of financing” comes at a price: Declining confidence in the purchasing power of money. Investors who understand this dynamic draw their own conclusions and seek refuge in real assets.
Gold and silver: The antidote to inflation
Gold and silver fulfill several functions in this context: They cannot be reproduced at will, they are independent of political arbitrariness, and they have proven themselves over thousands of years as a reliable store of value. The Austrian School emphasizes this aspect in particular: True money is a market phenomenon, not a government decree. And history shows that when confidence in the government currency declines, the market voluntarily returns to proven forms of money – first and foremost gold and, more recently, silver.
In uncertain times, when central banks lose their independence and serve fiscal interests, the opportunity costs of holding paper money rise. Anyone buying government bonds today often receives negative real interest rates – a sure recipe for wealth loss. In contrast, precious metals are “interest-free” but offer real stability.
Financial repression: The invisible expropriation
Another reason for the flight to precious metals is increasing financial repression. Governments are deliberately using low interest rates, high inflation, and regulatory pressure on banks and savers to rid themselves of their debt burdens. The traditional savings account is thus becoming a trap, quietly devaluing retirement savings – without any political responsibility having to be taken.
Investors who want to protect themselves against this creeping expropriation have few alternatives. Precious metals are one of the few asset classes that function outside the state-regulated financial system – anonymously, across borders, and physically available.
Conclusion: Rational mistrust
The increasing demand for gold and silver is not a sign of irrational panic, but rather an expression of rational mistrust in the monetary and fiscal architecture of our time. In the eyes of the Austrian School, this is not only understandable, but logically compelling. When money is arbitrarily multiplied, debt is piled up without limit, and markets are permanently distorted, a return to real money becomes inevitable.
In this sense, precious metals are not speculative assets – they are reinsurance against a system in crisis.
And the further politics moves away from economic reason, the more this reinsurance becomes a strategic necessity.
How can you buy precious metals cheaply and store them safely?
Elementum Deutschland GmbH, based in Sindelfingen (Germany), specializes in trading physical precious metals. Customers who purchase precious metals from Elementum Deutschland (or one of the other national Elementum companies in five European countries) can store them in the renowned high-security vaulting facilities in the St. Gotthard Massif in Switzerland at Elementum International AG.
Of course, you also have the option of purchasing gold and silver directly and having it delivered to your desired address. However, storing silver in the so-called open duty-free warehouse (“offenes Zollfreilager”) at St. Gotthard offers decisive tax advantages:
- The 19% value added tax customary in Germany is completely waived on purchases and sales – a considerable price advantage that effectively secures you 19% more silver for your money.
- If you store your silver in this high-security vault, you can sell it back to Elementum Deutschland GmbH at any time – without any bureaucratic hassle and also without VAT, as the trade takes place within the duty-free warehouse. You will receive the funds via bank wire.
- VAT is only payable when you physically remove the stored silver – either by picking it up in person (after prior notification) or by having it shipped to your address.
More silver, more return
Thanks to duty-free storage, you receive 19% more physical silver when you buy. This additional amount also participates in the performance of the silver price if it rises – a leverage effect that significantly improves your return opportunities.
Secure your storage space now – free of charge and without obligation
Register now for a storage space in the St. Gotthard high-security vaulting facility and receive free access to:
- our General Terms and Conditions (GTC)
- current fee tables
- annual audit reports from the auditing company BDO AG
- transparent proof of use of funds
- family discount information
- the popular children’s program “Schatz4Kids” (“Treasure4Kids”)
- as well as numerous other documents and information on storage, purchase, and resale, as well as the ratio “switching” strategy.
Register now: https://silberbar.elementum.de/
Tip for discounted entry: Enter the promotional code “50” (“Aktionscode“) and the “Vermittler” number 1000166 when registering to receive a 50% discount on the storage space setup fee.
Important: Registration is non-binding and does not commit you to anything – but it is your first step towards an independent and crisis-proof precious metal investment.
Elementum is a second-generation, owner-managed family business. Trust, consistency, and long-term thinking are at the heart of our philosophy. The Board of Directors of Elementum International AG is composed of internationally renowned experts in the money and precious metals markets, including economists, analysts, university professors, and precious metals specialists. This in-depth expertise forms the backbone of our actions—for your security, your assets, and your future.
About the Author
Prof. Dr. Philipp Bagus
President of Elementum International AG
Philipp Bagus is Professor of Economics at Universidad Rey Juan Carlos in Madrid, Spain. His research focuses on monetary and business cycle theory, and he has published in international journals such as the Journal of Business Ethics, Independent Review, and the American Journal of Economics and Sociology. He has received numerous awards for his work, including the O.P. Alford III Prize in Libertarian Scholarship, the Sir John M. Templeton Fellowship, the IREF Essay Prize, and the Ludwig Erhard Prize. Bagus is a member of the Academic Advisory Board of the Ludwig von Mises Institute Germany and the author of several books. His best-known works include “The Milei Era: Argentina’s New Path” (2024), “Full Reserve Banking versus the Real Bills Doctrine” (2024), “In Defense of Deflation” (2015), and “The Tragedy of the Euro” (2011).
Contact
Rockstone News & Research
Stephan Bogner (Dipl. Kfm., FH)
Müligässli 1, 8598 Bottighofen
Switzerland
Phone: +41-71-5896911
Email: info@rockstone-news.com
Disclaimer: This article reflects the personal opinion of the author. Elementum assumes no responsibility for the accuracy of the content and accepts no liability for its use. This article may contain links to external third-party websites. Elementum is not responsible for the content of these external sites and expressly distances itself from all information provided there. At the time the links were created, no unlawful content was identifiable. This article does not constitute a recommendation to buy or sell. Elementum International AG is a Swiss company that specializes exclusively in the storage of physical precious metals in a high-security vault facility located in the St. Gotthard mountain massif in Central Switzerland. The Board of Directors and Executive Management of Elementum International AG have been selected solely based on their professional expertise and long-standing experience in precious metals markets. As these individuals may also be professionally active outside their roles at Elementum International AG, the company has no influence over their external activities and respects their right to freedom of expression. Therefore, the views expressed by persons working with or for Elementum do not necessarily reflect the opinion of Elementum International AG. Investments in precious metals are subject to risks, including those specific to the structure of this market. Please read our full risk disclosures and consult a licensed financial advisor before making any investment decisions. Neither the author, Elementum International AG, nor Elementum Deutschland GmbH assume any liability for actions taken based on the information provided. Past performance is not indicative of future results.
