Tag Archive: counterparty

There Is Only One True Form of Money

There are numerous reasons to buy and hold physical gold. Of course, the potential for significant price appreciation is a major factor when investors make the decision to invest in gold. Although everyone likes the idea of buying low and selling high, the idea of a rising gold price is by no means the only-or even most important reason-to buy and accumulate physical gold. Of all the possible reasons to accumulate gold-such as to preserve purchasing power, to hedge against declining currency values and to... Continue Reading

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The Counterparty Risk Problem

Investopedia defines counterparty risk as “the risk to each party of a contract that the counterparty will not live up to its contractual obligations.” Now think about that for a moment… Whether you realize it or not, you have to confront counterparty risk on a daily basis. Will the power company deliver electricity to your home? Will the city or municipality provide a clean and reliable water supply? Will your health insurer pay up in the event of a claim? While all of these issues... Continue Reading

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