Gold Is For Real Wealth
Not Speculation (Video Summary)
BMG considered it a great privilege to have David
Ranson, President and director of research of Wainwright Economics join BMG on
March 8th for our Gold is for Real Wealth Preservation - Not Speculation webinar.
Wainwright Economics is an investment research and strategy firm which for over
30 years has helped the institutional investment community in devising effective
investment strategies through intelligent use of market data and superior
understanding of how markets behave over time.
David builds the case for Gold as
the ultimate diversifier for portfolio diversification and protection step by
step. He begins by looking at the varied definitions of inflation, which is
often misrepresented by the media. David examines the Consumer Price Index
(CPI), discusses how it has been re-engineered on many occasions and how this
has led to its ineffectiveness as a gauge of inflation. He then goes on to
explain why gold is actually a much better leading indicator of inflation and
looks at the long-term relationship between gold and the CPI.
Then attention is focused on the
devastating effects inflation is having on fiat (paper) currencies with all
major currencies suffering from significant devaluation. A trend which is set to
continue as debt levels and money supplies increase. He also discusses how the
mindset towards gold has been heavily influenced by decades of negativity by
academics and policymakers who have long denied the significance of gold.
David then shows it is gold, not oil
that those concerned about inflation should we watching. He points to the fact
that correlations between oil price changes and inflation are much lower than
those for gold, demonstrating that gold is a much better indicator of inflation
than oil. This correlation is explained as gold behaves differently to oil due
to the minimal new annual supply of gold compared to other commodities such as
oil and the fact it is accumulated rather than consumed. The Dow-Gold ratio is
also defined and we see that an understanding of this ratio further supports the
case for gold.
Finally, gold’s performance and
volatility over time is scrutinized and we find just how well it has held up
against all other asset classes. David concludes by stating that gold really is
the best tool to protect portfolios and preserve wealth and examines how much
gold is needed in a portfolio to be suitably effective against the threat of
inflation we are seeing today.
We strongly recommend that readers
take the time to watch the one hour webinar replay available on our website. A
PDF summary is also available.
To watch the full webinar: Gold is
For Real Wealth Preservation – Not Speculation