A Year for Accumulation, Jeff Christian November 2019 Part 2
Sean Brazney: Hello, my name is Sean Brazney, Sales Director from Monex Deposit Company. I'm here with Jeffrey Christian, Managing Partner and Founder of CPM Group and the author of our Year for Accumulation Report. Thank you for being with us today Jeffrey.
Jeffrey Christian: It's always a pleasure to be with Monex.
Sean Brazney: We've had to spend an obscene amount of money in this country to squeak out just a little bit of growth and this seems like it's the path forward for years to come. What would your sage advice be to the new investor thinking about accumulating gold for the first time?
Jeffrey Christian: Well, I guess there are two things. One is that from a structural perspective, holding some of your wealth in gold, holding some of your portfolio in gold makes enormous amount of sense. You want to diversify the denominator of your wealth away from the dollar into the dollar and gold and maybe silver too. There's a diversification issue, but there is also a capital appreciation thing. This is a period of time where we think, and a lot of other investors think too, that the gold price and the silver price are likely to rise, not only in the next three months, but over the next several years. I think that gold and silver make sense as an intermediate-term and a long-term investment for a number of people right now. One of the things that we're telling people is... because you know you have a lot of people coming just to say it looks to me we have trillion dollar deficits, we have 23 trillion dollars in debt just in the U.S., and we're in better shape than a lot of other countries in Europe, Japan, and other parts of the world. So, there's a lot of fear in the world right now and there's this view... well the world's going to... the world's financial system is going to collapse and gold is going to $10,000 and silver is going to $1,000 and stuff like that. We caution people. We say, "We don't see an economic collapse. We do see financial problems and recessionary problems similar to what we saw in 2007, 2008, 2009, but they may be 2023, 2024 before we see those. We do see those kinds of economic problems. We do see gold and silver rising sharply, but not necessarily in this cataclysmic end of the world as we know it type of scenario. That's good, because we don't really want the world to end. We don't want the financial system to collapse. We want it to continue, but we also want to protect ourselves from the fact that to some extent it's being continued and perpetuated by borrowed money, with borrowed money by governments. So, our view is... yes, you should be bullish on gold and silver. You should have a sense of history. World financial system has had some nasty, cataclysmic periods in 2008, 2011, in 1980 and the 1930's and 1940's. There's a lot of uncertainty in the world. There are a lot of reasons to have some of your wealth in gold and silver, but don't necessarily bet the bank that the world is going to collapse, because really if you have to go back to like the 14th century to find that kind of collapse. Over the last 500 years, or whatever that comes out to be, I guess it's closer to 700 years, we've pretty much been able to withstand these periodic catastrophes and paper them over and move forward. That's the history and you should expect history to repeat itself with variations. So, you should have gold and silver, because you do very well in those kind of economic periods with gold and silver, but you shouldn't necessarily expect the worst case scenario.
Sean Brazney: Well Jeffrey, your time and data is extremely valuable as always. We really appreciate your time and spending this on our Year for Accumulation topic. Call Monex today. Talk to an account representative and get your free Year for Accumulation Report.