Your Optimal Precious Metals Strategy


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Your Optimal Precious Metals Strategy

Investing in precious metals can act as a hedge against economic turmoil. Gold has been the universal symbol of wealth for civilizations throughout the ages. Ancient cultures created gold jewelry and early forms of money were crafted from gold.

In this presentation Liiivo Leismann shares some important and critical ideas regarding precious metals and their potential as an investment.

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Published in: Economy & Finance, Business
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Your Optimal Precious Metals Strategy

  1. 1. Precious Metals Build & Protect Your Wealth
  2. 2. What's happening now is not new History shows a common pattern Spain has defaulted 15 times since the 16th century Greece has defaulted 5 times since the 19th century Portugal has defaulted 7 times since the 16th century This time is not different
  3. 3. " Paper money eventually goes down to it's intrinsic value - zero " Voltaire in 1729
  4. 4. " Betting against gold is the same as betting on governments. He who bets on governments and government money bets against 6,000 years of recorded human history." Charles de Gaulle French President 1959 to 1969
  5. 5. It’s NOT ONLY about GOLD …. … it’s also about CYCLES
  6. 6. Klondike 1880’s When will a Gold-Rush happen? 2 times during every Kondratieff cycle: - in “summer” (because of increasing inflation) - in “winter” (because of disruption of the financial system)
  7. 7. Gold – The Best Performing Asset Class Since 2000 Gold Price % Annual Change
  8. 8. Crude Oil Prices (base of 100) measured …. January 1950 through December 2009 in British pounds in US dollars In EURO-s in goldgrams
  9. 9. Our Problem
  10. 10. Precious metals too expensive already??? Price Increase In the 70’s 20 times Actual Cycle 5,7 times 42,5 USD to 850 USD 250 USD to 1425 USD 40 8 times 1,25 USD to 50 USD times 4,5 USD to 36 USD
  11. 11.
  12. 12. FIVE PERCENT ALLOCATION RULE 5% precious metals in your portfolio recommendation, where does it come from?
  13. 13. FIVE PERCENT ALLOCATION RULE YOUR SAMPLE PORTFOLIO (100, 000 EUR) 95 % other assets 5 % gold 95,000 EUR 5,000 EUR BIG CRISIS SCENARIO other assets gold 95,000 EUR * 0 = 0 EUR 5,000 EUR * 20 = 100, 000 EUR your portfolio still 100, 000 EUR YOUR PAIN KILLER against inflation
  14. 14. It’s NOT about PRICE …. … it’s about OUNCES you own
  15. 15. Selection ETI Fund Investing in physical precious metals ETFs at the Zürcher Kantonalbank and UBS Metal deposited in Switzerland Option for physical delivery Strategic solution as alternative single fund
  16. 16. “Paper Gold” vs Real Gold “Paper Gold” products (GLD, SLV, and etc) filled with RISK Their prospectuses contain multitude of “LOOPHOLES”
  17. 17. “LOOPHOLES” such as: • The underlying gold is NEVER required to be audited • No prohibition against LEASING the fund’s gold and silver • The fund custodians (HSBC – GLD; JP Morgan - SLV) can use “sub-custodians” to store gold and silver, which have NO OBLIGATION to be audited either • JP Morgan is subject of dozens of lawsuits alleging illegal, naked short selling of silver futures contracts Therefore, both funds trade at DISCOUNTS to the underlying gold and silver prices (currently at ca 3%)
  18. 18. Dynamic fund of fund investing in 3 asset classes: - physical gold - gold & silver mining stock - fixed income securities trading Physical gold deposited in Liechtenstein Option for physical delivery Ideal strategy for DEFLATIONARY SHOCKS PROTECTION LEVERAGE LIQUIDITY
  19. 19. Why investing into gold & silver over ETI-s? Guaranteed physical gold ownership (option for physical delivery) No storage and insurance problems Easy to transfer to “next generation” Daily liquid, daily NAV Anonymous ownership Tax optimization effect Easy to ENTER, easy to EXIT
  20. 20. WHO owns physical GOLD …. … will always have MONEY
  21. 21. “Gold is the money of kings” “Silver is the money of gentleman” “Poor man’s gold” “Barter is the money of peasants” “Debt is the money of slaves”
  22. 22. Value of gold in the end of the crisis Haus/apartment in GER/AUT 5oz = 150g (Like in Germany in 1923) In Switzerland 10oz? Haus/apartment in USA 2oz = 62g (Forecast by Chris Laird) Holiday house in Spain 1oz = 31g (historically 1oz = equivalent of persons annual salary) Historically 1oz = equivalent of persons monthly salary 1 Kg of gold - a mid-size company or a hotel (Like in Germany in 1923)
  23. 23. How to Invest? FIND OUT MORE
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