Venezuela, Argentina, Brazil, Iran, South Africa and Turkey could become the norm throughout the global financial world.
Eventually the financial plague will infect the entire $300 trillion in global stocks / bonds markets and impact even North America.
Margin debt is 50% higher than just before the 2008 Great Recession that could result in sudden / violent and catastrophic market losses / financial chaos.
With only $1.8 trillion of investment grade gold available, a global currency crisis is inevitable.
If only 5% of the $300 trillion in paper assets is directed to gold, $15 trillion could flood the tiny $1.8 trillion PMs sector resulting in $10,000+ gold.
Several BRICS nations are inoculating their currencies from the systemic financial infection.
China and Russia continue to stockpile PMs including silver in Moscow, in preparation for a global currency pandemic.
Our guest cites research suggesting peak gold is occurring just when supply is most needed.
Even an enormous new find would require decades to positively impact supply levels.
Once panic grips the financial markets the 5% gold allocation could exceed 10-20% or higher sending the yellow metal price north of $30,000 per ounce.
One candidate for an alternative reserve currency is the Yuan that is convertible to gold, better facilitating crude oil / commerce transactions.
BMG has identified a triple bubble in stocks / bonds / residential housing, where current share valuations mirror those of the 1929 peak.
The risk of missing further gains in US equities pales in comparison with the potential risk of loss.
Nick Barisheff questions how markets will respond amid bear market conditions, given the less than robust activity during the current bull market.
The World Gold Council announced that gold production has peaked.
Mines can no longer produce enough output to increase the supply, but only add to dwindling stockpiles.
Potential gains in the comparably small $1 trillion PMs market could startle even the most ardent gold aficionado as investors, institutions, pension funds, hedge funds and even governments seek safe-haven assets.
Our guest views panic related capitulation-selling as an opportunity to procure the metals at fire sale prices.
Caution is advisable when overweighting any single investment class as the asset diversification remains the perennial "free lunch" investment strategy.
The duo review harsh comments from the current Administration directed at the new Federal Reserve Chairman, Jerome Powell.
Officials warn the multi-year rate hike theme could undermine current efforts to boost US exports.
A stronger dollar reduces the relative price advantage of US goods shipped off shore.
The head of the Central Bank of Russia, Dimity Tullin noted gold is the only guarantee against "legal and political risks."
The CBR added the most gold bullion to the national stockpile in a year, front-running potential tariffs / taxes on the precious metal.
Top analyst Jim Rickards applauded Vladimir Putin's decision to add discounted gold to the national coffers.
Peter Grandich agrees that gold remains a viable investment, "Buy a little gold as insurance and hope it doesn't go up in price," to protect your nest egg from inevitable market volatility.
The Grandich Letter
About Peter Grandich Managing Member, Grandich Publications, LLC. With no formal education or training, Peter Grandich entered Wall Street and within three years was appointed Vice President of Investment Strategy for a leading New York Stock Exchange member firm. He was the editor and publisher of four investment newsletters, and appeared on national TV and radio over 400 times. Labeled the Wall Street Whiz Kid, Grandich gained national notoriety by being among the very few who not only forecasted the 1987 stock market crash just weeks before it happened, but on the very next day he predicted that within a year the market would reach a new all-time high which it did. Proving his 1987 forecast was no fluke, Mr. Grandich said in January 2000 that the year 2000 will go down as the year the great mega bull market of the 80s and 90s came to an end.He speaks at numerous major investment conferences worldwide and was awarded Best Speaker Award eight times by the International Investors Conferences.
Grandich is the founder and managing member of Grandich Publications, LLC. Grandich Publications publishes The Grandich Letter. First published in 1984, it provides commentary on the mining and metals markets. In addition, the company also provides a variety of services to publicly-held corporations on a compensation basis.
In addition, Grandich is a member of the National Association of Christian Financial Consultants, and a long-standing member of The New York Society of Security Analysts and The Society of Quantitative Analysts.
$10,000 Gold: Why Gold's Inevitable Rise Is the Investor's Safe Haven (please click the image:) For the past decade, Nick Barisheff has focused on the world of precious metals and the advantages of investors holding physical gold, silver, and platinum bullion . As president and CEO of Bullion Management Group Inc. (BMG), a precious metals management company, he uses his understanding of the precious metals markets to develop strategies, products and services for clients looking to integrate bullion into their portfolios. His view on the precious metals sector is that gold, silver and platinum in bullion form, are a vital component of a client's financial program and should make up ten percent or more of a well-diversified portfolio.
In 2002, he launched BMG and BMG BullionFund, Canada’s only RSP eligible open-end mutual fund trust that purchases equal dollar amounts of gold, silver and platinum bullion. More recently, BMG expanded it products by launching BMG Gold BullionFund and the BMG BullionBars program. Mr. Barisheff specifically designed all BMG products to meet the three fundamental attributes of owning bullion: liquidity, no counterparty risk and independent of management skills. In 2011, BMG became an Associate Member of the London Bullion Market Association (LBMA).
Widely recognized as an international bullion expert, Barisheff writes numerous articles on bullion and current market trends, which are published on various news and business websites. Nick has appeared on BNN, CBC, CNBC, Sun Media and does countless interviews in leading business publications across North America, Europe and Asia. He is a soon to be published author with his book $10,000 Gold: The Inevitable Rise and the Investor’s Safe Haven. Every investor who is seeking the safety of sound money will benefit from Nick’s insights into the portfolio-preserving power of gold.
Through BMG, Mr. Barisheff is continuing to develop products and services that allow investors of every level, from institutional to “do-it-yourself” individuals, take full advantage of buying and holding uncompromised bullion in a diversified portfolio.
Nick Barisheff is a finalist for the Ernst & Young Entrepreneur Of The Year 2012 Awards.
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