SPECIAL GUEST: NICK BARISHEFF, Nick Barisheff is the President and CEO of
Bullion Management Group Inc., a bullion investment company which provides
investors with a cost-effective, convenient way to purchase and store physical
bullion. Widely recognized as a North American bullion expert, Barisheff has
written and been quoted in numerous articles on bullion and current market
trends.
33 Minutes
Nick Barisheff Talks FINANCIAL REPRESSION and the Real Chinese Gold Inventories.
Financial Repression is a massive wealth transfer from the savers to the borrowers,
where the borrowers are primarily the government and Wall Street. It is done
so subtly that the vast majority of people are unaware of their loss of purchasing
power over the years of true financial repression.
It is simply about real negative interest rates which are worse than most
realize if you use John Williams' ShadowStats inflation
rate of close to 10% in the US. Presently negative real interest rates are
witnessed worldwide in all the heavily indebted developed economies.
These Governments haven't been able to get out from under too much debt by
either: 1- Austerity measures, 2- Taxation policies, 3- Inflation or 4- Economic
Growth. The only politically expedient solution left is Financial Repression.
The middle class feel this in two ways: 1- Lost interest income and 2- Earned
income through wages not keeping up with inflation.
As a gold expert, Nick Barisheff believes gold should be included in investor's
portfolio as insurance. Gold should normally be 10% of assets but presently
should be considered strategic and the allocation should be closer to 20%.
He cites why but startling lays out the degree to which China is presently
acquiring Gold.
The Real Chinese Gold Inventories?
Nick believes China is closer to 5000 tons of gold than the 1000-1700 currently
reported by official sources. He believes China is acquiring physical Gold
in its Sovereign Wealth Fund which doesn't have to report it to anyone. The
last time they did the Chinese Central Bank Gold Reserves went from 800 to
1600 tonnes. They haven't reported in five years.
During this 5 years Nick argues the gold is coming from Leased Gold. There
has been approximately 1500 tonnes per year in net leasing over the last 10
years.
Nick believes when this all becomes properly understood it will send shock
waves through the system
Gold Expropriation
There is no answer to how governments might react to markets suddenly pushing
Gold prices up dramatically. Nick is skeptical of countries expropriating gold
from its citizens like the US did in the 30's but investors need to be prepared
for surprise reactions. His view is the best answer is Diversification within
the 6 Investment Asset Classes and within the Precious Metals class to be diversified
between gold, silver and platinum. There have never been government attacks
on Silver and Platinum.
- Investors should be Diversified
- Investors must Educate themselves
- Investors Under Current Conditions should Strategically hold 20%
This is a most watch video for anyone interested in Gold Investing.
