House Prices to Fall 95% Compared to Gold…
Sometimes it’s fun to poke fun at the big end of town.
And that’s exactly what I did last Friday when I took to the stage at the Gold and Alternative Investment Conference (GAIC) in Sydney last week.
While this was a gold conference to learn all about the role precious metals play — and why people should remember precious metals are money — I took a different approach.
That’s cause there’s two sides to the gold story…
Bullion or stocks…or both?
The theme of GAIC was simple: why people should hold gold and silver bullion.
And I’ll cover what some of the guest speakers said on that subject in a moment.
But before I do, there’s more than one way to be part of the rising gold price.
The other side to this that some investors overlook, is that a rising gold price often correlates to a rising share price of gold miners.
Which is what my speech focused on.
My goal was to get up on stage and teach people some tips and tricks in what to look for when it comes to gold miners…
On stage at GAIC 2019
Source: Gold Industry Group
Last week I showed you how gold and mining exchange traded funds (ETFs) tend to move with the gold price.
So many investors tend to flock to them because retail investors feel that is easier to understand.
Whereas they find investing directly in gold miners or explorers confusing.
This is partly because that is true. Investing in these types of stocks do carry more risk…
…but it’s also because many investors don’t know where to start.
How do you pick one gold miner from another? How do you know what to look for if investing in explorers is more your swag?
Not only that, much of the information that comes from this sector of the market is very confusing.
Which is why, I actually thanked many of the exploration directors and geologists at the start of my speech for keeping me in a job. Because some companies put out overly complicated data investors can’t interpret…which means that great — or really bad — information gets missed by people like us.
Over the next couple of days I’ll explain in more detail what I mean. Plus I’ll get my slide presentation up on the website for you to have a look at.
In the meantime, what was the takeaway of the conference?
What did we learn?
To kick-start the conference, was founder of Matterhorn Asset Management, Egon von Greyerz.
Matterhorn Asset Management have the largest private bullion vault in the world. And they’re well known for recommending their clients have a large exposure to gold.
Von Greyerz made a compelling case for the price of Aussie houses to fall 95% in relation to gold.
You could hear a gasp when he said that…
…I mean, threatening falling property prices in Australia is just not the done thing.
Nonetheless, von Greyerz explained that the value of fiat dollars will fall drastically in relation to a rising gold price. That, he argued, will be compounded by Aussie house prices being propped up by substantial debt.
Shortly after von Greyerz was on the stage, I was able to secure an exclusive interview with him. Details on how to get your hands on that interview will come out in the next couple of weeks.
Another speaker that excited the crowd, was Louis Boulanger. A former Mercer institutional investment guru turned manager of private wealth.
However, it was again, in my exclusive interview with him, that he explained how he came to understand gold.
After deciding the hectic pace of investment banking wasn’t for him, he took a year off…and spent that entire year reading about the history of money.
It was only after that — and a little coaxing from former clients — that he decided to set up a gold-focused wealth management business for high net worth clients.
Of course, the whole point of conferences like this, is really the people you meet…
The people you meet
I’ve made some of my strongest contacts at conferences. Attending the speeches is a great source of information. But on the ground around the conference floors, you’ll often find the people in the background who make everything work.
Compliance managers, geologists, high net worth investors, stockbrokers, and company directors.
Talking and connecting with these people have allowed me to create an incredible rolodex of people I can call on to clarify certain things.
While that allows me to bring valuable insights to you daily, it doesn’t beat meeting readers.
Over the course of the three days I walked the halls of the conference, I got to meet, hang out and have a couple of coffees (or champagnes!) with many readers of the Daily Reckoning Australia.
Long-time Daily Reckoning Australia reader, Wendy, and I
Source: Agora Financial Australia
Wendy and I met straight after my speech on Friday afternoon.
As newsletter writers, it’s fantastic to meet the people you write to. It reminds us why we do this.
That is, working towards making you a better investor by leveraging on the contacts we have in the industry.
As I said to Wendy, I do this to democratise information. I’ve been kicking around this industry for over a decade now, and it’s a privilege to be able to share with you the tidbits, the tattles, and the information I receive simply because I know who to talk to.
Out of all of this, the key takeaway from the conference is that more people are beginning to understand the benefits of investing in bullion.
To me, that means more people are susceptible of fiat dollars, and are looking for ways to protect their wealth.
Until next time,