TORONTO, ONTARIO--(Marketwired - Nov. 9, 2016) - According to Nick Barisheff, President and CEO of Bullion Management Group Inc. (BMG), "A Trump US presidential victory signals US$1,500 an ounce for gold and US$24 for silver in the intermediate term."
"Trump voters have now injected an unprecedented level of uncertainty into global financial markets," continued Barisheff. "Investors prefer clarity, and until President-elect Trump fully clarifies his economic, trade and foreign policy positions, investors will be in a high-alert state of uncertainty. Roiling markets will compel investors to purchase safe-haven assets, especially precious metals."
"The mainstream financial media, market analysts and fiscal academics continue to overlook the fundamental reasons to own bullion," said Barisheff. "In one word, this oversight boils down to 'uncertainty.' Americans anxious about their future or their trust in large government and financial institutions chose to vote for President-elect Trump."
Barisheff emphasizes that the gold price has a strong historic correlation to the growth of the US national debt of about 90%. "This correlation diverged in 2011, and in order to reflect the current $20 trillion in total debt, the gold price should be at least $2,000 per ounce," said Barisheff. Trump's platform promise of greater infrastructure spending and tax cuts will result in an acceleration of an already exponentially rising debt. Looking ahead several years, Barisheff stands by his long-term forecast as outlined in his book, $10,000 Gold: Why Gold's Inevitable Rise Is the Investor's Safe Haven.
For investors seeking precious metals as a safe-haven option, Barisheff points out that not all precious metals investments are created equal. "Mining stocks can offer short-term leverage to a rising gold price, but they can magnify losses in a declining stock market. Derivatives and proxies of physical bullion, such as ETFs and futures contracts, masquerade as bullion, but they do not offer the superior wealth preservation and appreciation of physical bullion held on a secured, allocated and insured basis," he said.
About Bullion Management Group Inc.
Founded in 2002, BMG is a dedicated guardian of physical bullion. BMG is based in Toronto, Canada with offices in multiple countries, including Panama and the United Kingdom. The company offers a wide range of physical bullion products designed for portfolio diversification and wealth preservation. BMG bullion products are stored on an allocated and insured basis within LBMA-member vaults.
BMG was the first precious metals bullion management company in Canada to become an Associate Member of the LBMA, an honour it shares with the Royal Canadian Mint, the Crown Corporation that produces Canada's currency. This validation and endorsement is only bestowed upon firms that meet the LBMA's rigorous industry standards on refining, reliable trading and 'Good Delivery' practices. BMG is also an associate member of the Responsible Investment Association (RIA) and signatory to Principles for Responsible Investment (PRI).
For Canadian investors, BMG Silver BullionFund, BMG Gold BullionFund and BMG BullionFund (silver, gold and platinum) invest only in unencumbered physical bullion. All bullion in BMG funds also meets London 'Good Delivery' Standards. All three BMG funds are designed to provide a convenient, cost-effective, medium-risk alternative for investors seeking to purchase and hold precious metals bullion. The bullion holdings for BMG funds are allocated, insured and held in trust under a custodial agreement with The Bank of Nova Scotia in Toronto.
For global investors, the BMG BullionBars program allows high net worth individuals, institutions and family offices to easily purchase and store individual bars of investment-grade 'Good Delivery' gold, silver and platinum free of VAT.
All BMG products offer investors the security of allocated, insured bullion without compromising any of the fundamental attributes of precious metals ownership: immediate liquidity; no reliance on management skills; no counterparty risk; and no use of derivatives, leverage, futures, options, leasing, currency hedging or gold certificates.
To interview Nick Barisheff on the investment drivers for precious metals and BMG's responsible investing approach, please use the contact information below.
Website: www.bmgbullion.com or www.bmgfunds.com