Nick Barisheff: US$10,000 Gold? Here's How it Could Happen

TL;DR

Nick Bereshove, President and CEO of BMG Group, discusses the importance of diversifying investment portfolios with 10-20% allocation to precious metals, particularly gold and silver.

Transcript

i'm charlotte macleod with the investing news network and here today with me is nick barachev president and ceo of bmg group and author of ten thousand dollar gold nick thank you so much for being here online with me today you're welcome my pleasure great so since it's our first time speaking i wondered if you could tell me just a little bit about ... Read More

Key Insights

• 🖤 Diversification is crucial for portfolio success, and most portfolios lack exposure to precious metals, commodities, and real estate.
• 🏅 Gold has historically outperformed traditional portfolios, with an average return of 10% in USD and 11.5% in all currencies since 2000.
• 🏅 Silver is undervalued compared to gold and has industrial applications that make it a unique investment.
• 🤑 The printing of money by governments and uncertainty around the economy and elections are driving up gold prices.
• 🛩️ The gold market is relatively small, and even small increases in demand, such as from pension funds, can have a significant impact on prices.
• 🤘 Investors should consider dollar-cost averaging when investing in gold and other precious metals.

Questions & Answers

Q: How should an investor allocate their portfolio to precious metals and other assets?

Most portfolios should have a 10-20% allocation to precious metals like gold and silver, as well as commodities and real estate for improved returns and risk reduction.

Q: Why are precious metals important for portfolio diversification?

Precious metals are non-correlated assets, meaning they tend to perform differently from stocks and bonds. This helps flatten out returns and reduce risk over the long term.

Q: What factors are driving the rise in gold prices?

The printing of an enormous amount of money by governments and central banks due to the coronavirus pandemic is causing the depreciation of fiat currencies. Additionally, uncertainty around a potentially contested election in the US is increasing demand for gold as a safe haven asset.

Q: How does silver compare to gold as an investment?

Silver is currently undervalued compared to gold, and its price needs to double to reach its average gold-to-silver ratio. Silver also has industrial applications, particularly in electronics, making it an attractive investment with no substitutes.

Summary & Key Takeaways

• BMG Group offers three mutual funds focused on gold, silver, platinum, and a product line of individual bullion bars for high net worth clients.

• Most portfolios lack diversity and do not include precious metals, commodities, or real estate, which are important for risk reduction and improved returns.

• The average return on gold since 2000 has been 10% in USD and 11.5% in all currencies, outperforming traditional portfolios.