SOURCE: Bullion Management Group Inc.

Bullion Management Group Inc.

December 22, 2010 14:33 ET

Quantitative Easing Strategies Raise Odds of Hyperinflation Says CEO of Bullion Management Group in a 30-Page Special Report

Nick Barisheff's BMG Special Report Titled "How to Protect Your Portfolio From the Economic Insanity"

TORONTO--(Marketwire - December 22, 2010) - Investors hoping for a happy ending to the current economic quagmire had better rethink their approach for 2011, warns noted bullion expert Nick Barisheff, CEO of Toronto-based Bullion Management Group Inc. "Hope is not an investment strategy in this environment," he says, "because what passes for fiscal and monetary policy today is nothing short of economic insanity."

Economic insanity? Barisheff says there's simply no other way to describe it. "I'm completely baffled by the actions of our monetary authorities," he says. "They continue to learn nothing from the past. They keep buying bad assets. They continue to keep interest rates at absurdly low levels. But worst of all, by agreeing to create more and more currency, central banks have become active enablers. They are complicit in allowing governments to effectively default on trillions of dollars of debt through devaluation."

What does Barisheff think of the ever-expanding quantitative easing actions of U.S. Fed Chairman Ben Bernanke? "Sheer madness. There's a complete disregard for financial discipline and millions of investors are going to suffer the consequences." And just what are those consequences? Barisheff has published them in a 30-page Special Report, How to Protect Your Portfolio from the Economic Insanity, released today at www.economicinsanity.com.

In the report, Barisheff helps investors understand how and why the global economy will grind to a halt. Nevertheless, he says there's still time for investors to change their strategy and capitalize on current conditions, "because there's an incredible complacency in both the bond markets and the stock markets."

The key points in Barisheff's How to Protect Your Portfolio from the Economic Insanity special report include the following facts and advice:

  • Currently, almost 43 cents out of every dollar of U.S. government spending is financed with debt. "That is simply unsustainable." Barisheff says it's vital investors act now to protect their wealth, because the world has entered a prolonged period of fiscal and monetary recklessness.
  • Barisheff recommends that at least ten per cent of every investor's portfolio be allocated to physical bullion during normal economic conditions. And during times like these, the percentage should be much higher.
  • What should an investor sell in order to make the change? Barisheff says bullion should immediately replace the so-called "cash" component in an investor's portfolio. "Cash -- savings and chequing accounts, term deposits, guaranteed investment certificates, and so on -- has taken on substantial risk. Why would anyone invest in a depreciating asset offering a negative real return?"
  • What about the talk of gold being in a bubble? Barisheff advice: "Even after the past ten-year rise, the total value of all gold bullion in the world is but a fraction of the value of the $200 trillion currency-based financial asset market." Clearly, gold prices have a lot of catching up to do, and spiralling inflation is very likely to accelerate the catch-up process. But as he makes clear in his report, "the biggest risk of all isn't spiralling inflation. It's not owning gold."

About Nick Barisheff
Nick Barisheff is president and CEO of Bullion Management Group Inc., a precious metals bullion investment company which provides investors with a cost-effective, convenient way to purchase and store physical gold ,silver and platinum bullion. Widely recognized as a North American bullion expert, Mr. Barisheff is an author, speaker and financial commentator who is a regular contributor to several investment newsletters and magazines and regularly appears in the media to provide his view on precious metals, economics, and the markets.

About Bullion Management Group Inc.
Toronto-based Bullion Management Group Inc. is one of the world's fast-growing precious metals bullion investment companies, with $CDN 473 million of bullion investments under management. BMG BullionFund is the world's first and only open-end Mutual Fund Trust that invests directly in equal dollar amounts of unencumbered fully allocated gold, silver and platinum bullion which also qualifies for all registered plans. BMG Gold BullionFund is designed for investors with a convenient method of obtaining the benefits associated with holding physical gold in bullion form. The BMG BullionBars program meets the needs of investors seeking to purchase and hold individual bars of investment-grade gold, silver and platinum bullion. For more information on BMG bullion investment products, please visit: www.bmgbullion.com

Contact Information

  • Media Contacts:

    Nick Barisheff
    president and CEO
    Bullion Management Group Inc.
    Phone: +1 888-474-1001

    Jill McCubbin
    Conversation Architect
    market2world communications inc.
    Phone: 613-256-3939
    Email: Email Contact