The Dutch National Bank and the (former) CEO of Overstock.com
The Dutch National Bank and Patrick Byrne, CEO of Overstock.com, both agree that holding physical gold is a good hedge against an economic downturn.
The Dutch National Bank published an article on their website saying that everything is at risk and if the whole system collapses, gold will be used as collateral to start over. They state,[1][2][3]
“Stocks, bonds and other security: everything is at risk... If the whole system collapses, the gold stock offers a collateral to start over. Gold gives confidence in the power of the central bank's balance sheet.”
Patrick Byrne, resigned as CEO of Overstock.com on August 22[4] and has sold all of his stock to put $90 million[5] into gold, silver, and two unnamed crypto currencies. On September 18, in his blog Deepcapture.com, he wrote,[6]
“For these reasons it may give you some comfort to know what I am doing with the capital generated by the sale of my stock. After paying tens of millions in taxes (after all, ‘We didn’t build that,’ right?) by Friday the rest will be in investments that are counter-cyclical to the economy: Gold, silver, and two flavors of crypto. The gold and silver are stored outside of the United States, in Switzerland, and within two weeks, will be scattered in other locations that are even more outside of the reach of the Deep State, but are places that are safe for me.”
He goes on to list two reasons that he is doing this, the first and most relevant to this article, being as a hedge against an economic downturn so he can bailout the company he just left.
“It provides a hedge for Overstock. If the economy craters and thus Overstock runs into tough times, those investments will soar (that’s what ‘hedging’ a bet means) and you will have access to capital if needed. In fact, you will have not just access to capital, you will have access to the friendliest capital imaginable: my own.”
Patrick Byrne calls Warren Buffett his rabbi and has known him from a young age because Mr. Buffett did business with his father. He also knew the economist Milton Friedman and is the co-chair of the non-profit EdChoice, with Rose Friedman- amongst his many other achievements which could make for a very interesting book.[7]
The Dutch National Bank is (officially) the world’s 10th largest holder of gold.[8]
[1] “Aandelen, obligaties en ander waardepapier: aan alles zit een risico... Als het hele systeem instort, biedt de goudvoorraad een onderpand om opnieuw te beginnen. Goud geeft vertrouwen in de kracht van de balans van de centrale bank.”
[2] https://www.dnb.nl/betalingsverkeer/goud/index.jsp
[3] https://www.zerohedge.com/markets/central-bank-issues-stunning-warning-if-entire-system-collapses-gold-will-be-needed-start
[4] https://www.globenewswire.com/news-release/2019/08/22/1905631/0/en/Overstock-CEO-Patrick-M-Byrne-Resigns.html
[5] https://markets.businessinsider.com/currencies/news/overstock-former-ceo-patrick-byrne-sells-stake-buys-gold-crypto-2019-9-1028538499
[6] https://www.deepcapture.com/2019/09/a-message-to-my-former-colleagues-at-overstock/