Hi I'm Montana Yorke your host here at
Cambridge House and I am joined here today by the
one and only Nick Barisheff
CEO and President of Bullion Management
Group. Nick thanks so much for being here
today. Oh you're welcome
my pleasure. Awesome!
Nick as someone who is widely recognized
as a Bullion expert, what's catching your eye on
todays market?
Well i think that what's on
everybodys mind is inflation
the
latest
numbers, 7 and a half percent
are highest
in 4 years so that's
on everybodys mind
that typically is
positive for gold
until we get to the point where
we
real interest rates
are higher than
than the inflation rate
it's going to be positive
for gold
the
our other main thing is
that the
published
inflation rate at seven and half percent
is nowhere
close to reality
John Williams
publishes
inflation rate from
the late 80s
uses that same methodology
and using
that he gets
15 percent a year now already
and
thats quite a cap when you consider
interest rates are 2 percent
so
you know that the difference is
when investors are losing
on any fixed income investment
but today
I just found from Bloomberg
and
they have
several items listed like
for instance
Coffee is up 92%
Natural Gas 81%
Crude Oil 66%
so the
inflation rate is much
higher
than the official seven and a half
right
so with these inflation rates
coming into play would you say
you are currently deploying capital into the market at all?
well
the way our
funds are set up we have
fixed investment policy
so as money comes in we simply
buy
bullion depending on which fund
it is
so we are in the market
on a daily basis
that was
the primary intent so there was
no
people to interferring
with your bullion
you decide when to buy it
we make sure that it's there
in physical form
so that
is ongoing
and today
if we compare today to
the 70s we have another
factor and that is in the
70s
we had half decent
increase in GDP
so now
with the
supply chain
crisis and people not
showing up for work
you've got a declining GDP
rising
inflation which we then get the
worse of both worlds
stagflation
and we're clearly in that
and it's the stagflationary
conditions
that gold does the best in
great and then
do you mind walking me through your current portfolio
well my
because of who I am my
portfolio is only in Bullion
and
and its not that I haven't
I had invested in mining stocks
up until 2012
but then they
at that point diverged
the mining stocks were
outpacing Bullion
and then they declined
now they've caught up again
but the problem
many people aren't aware of
is the
if you have a broad market decline
then the
mining stocks will
tend to go down by much greater
percentage than the
broad equity markets
even if the price of gold is rising
so
to me the strategy is
we are way
past
a equity market
decline
some of that valuation metrics
similar to
1929
so
we are overdue for that
so investors are better
off waiting and then
buying at
the bottom then they'll be huge
discounts at that point
do you have any other
tips
or tricks for junior investors in my
audience
well right now
I think that's the important
thing is in an abundance
of caution like they
people have got
used to you know having
a positive trend
as the markets went up
Like I say we are into very dangerous
areas
and for some
some of your investors we have a second
site we have
BMG Group website
and we got a BMG DIY Site
Just do it yourself investors
So the matter is that
a great
deal
of investing information
it's like an
information portal
on every aspect of
investing so those
that are doing it themselves that
that
give them a lot of assistance there
great and if my listeners
wanted to find those
exact website
details what are they Nick?
So the main site is
bmg-group.com
and the other one
is bmgdiyinvestor.com
great
Thankyou so much Nick!
Okay my pleasure!