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.
