SilverCrest Metals: Gold & Silver Vs. Fiat – We Want Real Money on Our Balance Sheet
SilverCrest Metals is a mining company that has made headlines in the precious metals industry with its focus on gold and silver production. The company’s CEO, Eric Fier, has been vocal about the merits of investing in physical gold and silver as opposed to fiat currencies. In a recent interview, Fier emphasized the importance of holding tangible assets like gold and silver on the company’s balance sheet, stating that they provide stability and intrinsic value that fiat currencies lack.
One of the key arguments put forth by Fier is the long-term performance of gold and silver compared to fiat currencies. Historically, gold and silver have served as a store of value and a hedge against inflation, while fiat currencies have often lost purchasing power over time. This disparity in performance underscores the appeal of holding physical gold and silver as assets that can protect against the erosion of wealth caused by inflation and economic uncertainty.
Fier also pointed out the role of gold and silver as a form of insurance against systemic risk in the financial system. In times of crisis or economic instability, gold and silver have traditionally been seen as safe-haven assets that can preserve wealth and provide liquidity when other financial instruments falter. This characteristic of precious metals makes them a valuable addition to any balanced portfolio, especially for companies like SilverCrest Metals operating in a cyclical and capital-intensive industry.
Furthermore, Fier highlighted the importance of diversification in the company’s balance sheet by including assets that are uncorrelated to traditional financial markets. Gold and silver exhibit low correlation with equities and bonds, making them an attractive alternative investment that can enhance the overall risk-adjusted returns of a portfolio. By holding physical gold and silver, SilverCrest Metals can benefit from the diversification benefits of these precious metals while reducing the company’s exposure to market volatility and systemic risk.
Beyond the financial considerations, Fier emphasized the intrinsic value of gold and silver as tangible assets that have been treasured by civilizations for millennia. Unlike fiat currencies that are subject to central bank policies and government intervention, gold and silver have a limited supply and inherent value that transcends political and economic uncertainties. This intrinsic value makes gold and silver a reliable form of money that retains its purchasing power over the long term, providing a sense of security and stability that fiat currencies cannot offer.
In conclusion, SilverCrest Metals’ strategic decision to hold physical gold and silver on its balance sheet reflects a prudent approach to preserving wealth and mitigating risk in an unpredictable economic environment. By prioritizing real assets with intrinsic value over fiat currencies, the company is positioning itself to navigate economic downturns and financial crises with resilience and confidence. As the global economy faces challenges and uncertainties, the appeal of gold and silver as safe-haven assets is likely to grow, reinforcing the wisdom of SilverCrest Metals’ commitment to real money on its balance sheet.