$10,000 Gold (eBook)

Why Gold's Inevitable Rise Is The Investor's Safe Haven

Nick Barisheff (Autor)

eBook Download: EPUB

2019 | 1. Auflage
298 Seiten
Nick Barisheff (Verlag)
978-0-00-016571-8 (ISBN)

Infos

$10,000 Gold is far more than a financial book.  It is a tool of survival and prosperity.  It leads the reader to a deeper understanding by showing the global economic and demographic trends that support a rational prediction for gold's future value.  $10,000 Gold advocates ownership of physical, uncompromised bullion and explains the benefits of a safe haven that has preserved wealth for more than 5,000 years. 

Textauszug

INTRODUCTION

In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value.

—Alan Greenspan

Gold is on a trajectory to $10,000 an ounce. It will likely go higher than that before the world economy is again on solid ground. Yet even though gold has outperformed all other asset classes over the last decade, and has been part of our vocabulary since we were children, for most people, gold and its price performance remain a mystery.

Gold has its own rules, its own standpoint and its own set of metrics—in other words, its own unique mindset. Quite simply, gold cannot be understood through the precepts of the conventional fiat currency theory, which is why financial professionals have so much trouble with it. This is also why the individual with an open mind will have an advantage. We will, therefore, approach our discussion of gold's rising price from the vantage point of a gold mindset.

Since the legendary Lydian monarch Croesus, who between 560 BC and 540 BC introduced the first coins of pure gold, rulers have waged a war of perception against monetary gold. This battle has never been more evident than it is today, and it will likely continue and intensify the higher gold climbs in price.

Gold has been, and will continue to be, disparaged in a way that far exceeds the treatment of any other asset class. Although there are many reasons for this, the most important is that gold, as money, is a direct challenge to the modern global fiat currency system and therefore to the governments, banks and financial institutions that benefit most from it. Gold presents a direct challenge to every paper currency in the world because, for the first time in over three thousand years, no country is on any form of the gold standard. Even though most central banks hold gold in their vaults, their fiat currencies are no longer redeemable in gold.

At times, it may be difficult to understand how what seem to be such disparate economic and geopolitical trends as the ones we will discuss are related to the main theme—the reasons for gold's rising price. They are significant because each of these influences contributes in a unique way to the rise. The major trends have one thing in common: each contributes to greater government debt, and government debt is directly proportionate to the rising price of gold.

For the past fifteen years, I have been in the gold business. When I came to understand the rules and nature of gold, I began making my projections public, both through Bullion Management Group's (BMG's) written presentations and at six of Toronto's Empire Club "Investment Outlook" series. About one thousand members of Toronto's financial elite attend this luncheon each January, and the commentary of the three guest speakers is highly publicized.

In 2012 I said it didn't matter whether gold ended the year at $2,000 or $2,500, because eventually that price would seem insignificant. I feel the same way today. I understand the interconnected forces, the visible and invisible influences, that cause gold's price to rise. Unlike many in this industry, I did not start out as a "gold bug." My appreciation for gold developed gradually over the past twenty years. My former experience made it easier to see the onset of what some call a "primary trend bull market" (a term that is not entirely accurate when it comes to gold, as I will explain later).

Initially, I worked in commercial real estate and left that sector when the market began to feel overvalued. From there I moved to software development, and again was fortunate with my timing. In 1998, the tech boom was gaining momentum, yet cracks were appearing everywhere. There was so little real value underlying the share prices and, in most cases, fundamentals were nonexistent.

The market was beginning to exhibit many classic characteristics of entering a bubble phase. Perhaps most telling was the constant refrain of investment advisors that "this time it's different." It is never different. Economic bubbles lacking inherent value always burst. In the end, the tech bubble was no different. It burst and destroyed lives and fortunes in the process.

During the late 1990s, I found myself with enough time to research what the coming trends were likely to be. It seemed clear that the world's rising population combined with the Third World's relentless drive toward Western-style modernization meant the next big trends would be in energy, uranium, water and precious metals, regardless of economic conditions. Of the four, I settled on precious metals. This eventually led to a serious study of gold and its role in the economy.

GUIDED BY TWO ESSENTIAL PRINCIPLES

From working in real estate, I learned two important lessons that I have tried to apply to all subsequent business ventures. These influenced my appreciation for gold and the approach I took when setting up BMG's first precious metals fund.

The first lesson was that an investment vehicle should adhere as closely as possible to the principles of the underlying asset upon which it is based. This reflects my deep distrust of financial derivatives of any type.

The second lesson was to expect a positive outcome, but to prepare meticulously for the worst. Motivational speaker Robert J. Ringer once said, "Reality isn't the way you wish things to be, or the way they appear to be, but the way they actually are." This is quite different from the "positive thinking" or even wishful thinking that many motivational speakers espouse. Positive thinking without objective consideration of all factors, both positive and negative, often becomes fantasy. We often see only what we want to see. I've found it requires an intense effort to see objectively beyond personal biases and desires, and to explore ideas that run contrary to these biases.

In the real estate business, both lessons underpinned principles that were important to my company's success. A small group of us were the first brokers in Canada to introduce multi-unit residential buildings (MURBs) for the real estate market. We set out to find a way in which small investors could safely own rental properties and receive similar tax benefits as those enjoyed by developers and wealthier property owners. The syndication of condominiums was already established in the United States, and served as the model we adapted in Canada. It allowed people to use tax dollars to own condominiums and townhouses that the developer would then rent out and manage. The key to the MURBs' success was that we followed principle one—we made the investment vehicle follow the principles of property ownership as closely as possible, in that investors owned each unit outright, with individual mortgages. Therefore, they could eventually sell the units to homeowners. Ultimately, others strayed from these principles and began syndicating substandard rental properties that would have never met the criteria for individual home ownership.

The second principle of expecting the best but planning for the worst proved invaluable to my success. When structuring a real estate deal, we brainstormed tirelessly to think of what could possibly go wrong. We then prepared for these eventualities.

This thought process is abstract thinking and is similar to the mental work employed by musicians and actors to overlearn their music or scripts, so their performances can appear inspired. Artists use similar mental training to teach themselves to draw what they see in their minds without models. One of the more famous practitioners of objective, abstract thinking was Canada's former prime minister Pierre Trudeau. As a leader, Trudeau demanded his cabinet members think through the consequences of their proposals—both positive and negative. As most found this difficult, he would walk them through it, as he had trained himself to think this way through years of practice. Throughout the book, we will draw on examples of experts who spot trends well ahead of the rest of us.

One such example is Dr. Chris Martenson, whose work I draw upon throughout the book. Dr. Martenson uses the term "lens" to describe the wide-spectrum perspective he has gained through years of studying the markets as a financial expert and as a scientist. He combines the disparate fields of the economy, the environment, energy and even the exponential function to see beyond the narrower perspective offered by the mainstream financial services industry and financial media. His work is complex and thorough. It is rapidly gaining wider recognition for its accuracy. Looking through the eyes of gold presents a similar perspective or lens, but one that adds a simple and infinitely positive and practical step we can take in response to what we see: the direct ownership of gold.

As I turned my attention to the gold market, I discovered that Canadians could not hold precious metals in their Registered Retirement Savings Plan (RRSP) accounts. Therefore, I decided to create an investment vehicle that would qualify for registered accounts yet would not compromise the fundamental attributes of holding bullion. It took four years to set the necessary regulatory grounds for BMG BullionFund (the Fund) and to arrange the logistics of buying and storing the physical bullion.

It was Canada's first open-end mutual fund that invested in bullion and qualified for RRSPs. It enabled Canadian investors to purchase equal dollar amounts of gold, silver and platinum bullion to hold in their retirement accounts. I planned the Fund carefully, adhering closely to the principles of bullion. Had I been willing to compromise only one feature of the underlying asset—gold's liquidity—and created a closed-end fund, the Fund would have been...

Produkt-Details

• Erscheint lt. Verlag: 6.4.2019
• Sprache: englisch
• Themenwelt: Sachbuch/Ratgeber ► Beruf / Finanzen / Recht / Wirtschaft ► Geld / Bank / Börse
• ISBN-10: 0-00-016571-9 / 0000165719
• ISBN-13: 978-0-00-016571-8 / 9780000165718