SOURCE: Bullion Management Group Inc.

Bullion Management Group Inc.

November 15, 2011 10:16 ET

What's the Next Crisis After Europe? BMG's Nick Barisheff Suggests That It's Time for Pension Funds and Institutional Investors to Allocate to Precious Metals Bullion

Bullion Management Group CEO Nick Barisheff Shows How Portfolios With Bullion Allocations Perform Better During Financial Panics. Bullion Represents the Best Portfolio Insurance for Today's Financial Reality

TORONTO--(Marketwire - Nov 15, 2011) - Pension funds and other institutional investors observing the Eurozone sovereign debt crisis should add gold to their portfolios, urges bullion expert Nick Barisheff, CEO of Toronto-based Bullion Management Group Inc. (BMG). "Sovereign debt and bank leverage in developed countries is out of control," he says. "As they turn their gaze from European turmoil back to exploding US and Japanese debt, prudent investment managers should re-balance their portfolios appropriately before bigger storms hit."

Citing statistics released recently by RBC Dexia and the World Gold Council, Barisheff gives three key reasons why pension funds and institutions should consider an allocation to gold bullion:

1) Many pension funds are experiencing difficulty.
Even Canada, which has weathered recent economic storms better than any G-8 country, is not immune from financial difficulties. A third-quarter report by RBC Dexia says pensions have lost 3.2 percent of their value this year. The Ontario Teachers Pension Plan reported a CDN$17.2 billion shortage in 2010. The Ontario Municipal Employees fund was short CDN$4.5 billion. Dalhousie University reported that its pension shortfall has doubled from just 18 months ago and is now critically underfunded.

2) Gold adds lustre to pension portfolios in times of economic stress.
Over the long run, using gold as a portfolio's foundation increases risk-adjusted returns, diminishes losses and preserves capital. World Gold Council statistics show that during the financial crisis of 2007-2009, a US dollar-based investor would have reduced losses by US$177,000 on a US$10 million portfolio by having a 3.7 percent allocation to gold. A euro-based investor would have saved EUR 314,000 on a EUR 10 million portfolio by having a 5.5 percent allocation to gold, while a pound sterling-based investor would have saved £292,000 with a corresponding 4.0 percent gold position. In percentage terms, this is equivalent to savings of 5 percent, 9 percent and 13 percent respectively. Portfolios with modest gold holdings would also have been cushioned from losses during the first phase of the European sovereign debt crisis between January and May 2010.

3) Gold is out-performing traditional "safe haven" assets.
The World Gold Council also points out that between 2007 and 2009, gold prices increased 40 percent (in US funds). In contrast, financial stocks fell 60 percent and the S&P 500 fell 40 percent. Yet despite its 11-year rise against all major currencies and equity classes, gold allocation, as of December 2010, was a mere 1 percent of total investor global holdings of US$146 trillion.

"There are several other independent trends that are impacting the price of gold," says Barisheff. "The most prominent are increased central bank buying, the movement away from the U.S. dollar, and factors like the aging population, job outsourcing and peak oil that will all compel Western governments to continue devaluing their currencies and adding to their debts. This will create many more financial scares in the months and years to come. If these trends continue, $10,000 gold will happen sooner than you think, and pension funds and institutional investors can only benefit from adding bullion to their portfolios."

About Nick Barisheff

Nick Barisheff has been actively involved in the finance industry for more than 30 years. He is a respected international media commentator and speaker who has promoted the many advantages of using gold, silver and platinum bullion for portfolio protection and wealth preservation. In 2012 his new book, $10,000 Gold: It will happen sooner than you think, will make the case for dramatically higher bullion prices as sovereign, bank and private debt around the world causes increased printing of fiat currencies.

As president and CEO of BMG, Barisheff uses his understanding of the precious metals markets to develop products and services for clients looking to integrate bullion into their portfolios. Mr Barisheff has grown the company since 2002 to over 600 million in assets under management with three unique products that aim to assist clients in dealing with today's financial reality.

About Bullion Management Group Inc.

Toronto-based Bullion Management Group Inc. is one of the world's fast-growing precious metals bullion management companies, with CDN$601 million of bullion holdings under management. The company is an Associate Member of The London Bullion Market Association (LBMA). BMG BullionFund is the world's first and only open-end mutual fund trust that purchases equal dollar amounts of unencumbered gold, silver and platinum bullion, and also qualifies for all registered plans. BMG Gold BullionFund is designed for those who want to obtain the benefits associated with holding physical gold in bullion form. The BMG BullionBars program meets the needs of clients seeking to purchase and hold individual bars of unencumbered Good Delivery Standard gold, silver and platinum bullion. For more information on how to purchase BMG bullion products, please visit:

Contact Information

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