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Friday, June 4, 2010
Alert 43-2
The Message from Montreal Couldn’t Be Clearer
The #1 topic at the conference was gold. And the #1 question was, If not now, when?
Two weeks ago, Kevin Drost and I joined roughly 340 concerned investors in Montreal, Canada, for the annual Total Wealth Symposium hosted by The Sovereign Society. From the start, a few things were readily obvious to even the casual observer …
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The level of sophistication of the attendees was quite high.
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The level of concern with the state of the global economy was equally high.
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Kevin and I were the busiest presenters and exhibitors at the conference.
If we could have figured out a way to import a ton or two of gold for sale at our booth, we would have sold every bar and coin. If we had brought application forms for the Perth Mint Certificate Program with us, we would have spent the entire week assisting attendees in completing them.
Why all the interest in the Midas metal? Simple. These astute investors were able to hear opportunity knocking.
In the week before we left for Montreal, gold made three new all-time highs. Then, as the conference began, gold started pulling back to test resistance just below $1,200 per ounce.
Now, I have to be honest. Not everyone heard opportunity knocking. As I arrived at the registration desk to pick up my badge and final schedule, I was greeted by a familiar face from previous conferences. He looked at me, shook his head, and said, “Gold isn’t doing so well.”
I look at him in astonishment. My answer, of course, was that gold was doing exactly what it is supposed to do. In fact, gold was doing what it has done now for nearly a decade. It was making higher highs, then testing resistance while it made higher lows. This is a classic description of a bull market.
That, my friends, is the behavior of gold in its present super cycle. The trend is firmly intact. Gold is going higher, probably much higher.
I went on to explain that when we see pullbacks, as we did that week, we don’t get discouraged. We get excited. It means we are seeing yet another opportunity to add to your holdings with slightly stronger dollars than the fundamentals would suggest.
Those of you who have read our alerts and newsletters over the years know our #1 recommendation: Use any dips in the price of gold to buy more.
I have to admit there were some at the conference who argued that since “everyone was on the gold bandwagon,” the true contrarian play was not to buy any. Kevin’s response to one such critic was, “If you were on the Titanic and everyone was rushing for the lifeboats, would you pick that time to be a contrarian?”
My argument is a little different. First, I believe it is safe to say that the attendees at this particular conference were not indicative of the general investor population. To be in the majority there meant you were a tiny part of the public at large. Consider: If you picked 50 investors at random, chances are than only one or two would own even one ounce of gold.
Second, I do not believe that being contrarian means always doing the opposite of the herd. Rather, contrarian investing to me is doing what the fundamentals tell you to do whether or not the herd agrees with you.
While the most popular recommendation at the Total Wealth Symposium was to acquire more gold, silver and platinum, this was not a gold conference. Attendees learned of a host of other options available to investors trying to protect their assets in the current economic turmoil.
There were excellent presentations covering offshore insurance products, offshore banking, and independent offshore asset management. We heard from two longtime friends of ASI -- Robert Vrijhof of Weber, Hartmann, Vrijhof and Partners (WHVP) and Thomas Fischer of Jyske Global Asset Management (JGAM). In the past, both gentlemen have contributed important articles for our readers and I’m sure they will do so again.
There were a number of presentations centered on setting up offshore structures, the changes that will arise with the implementation of the Hire Act, and the adoption of second passports and opportunities for expatriation. In fact, it was startling to see the high level of interest by many attendees in moving abroad and even abandoning their U.S. citizenship. Clearly, with this group, dissatisfaction with the status quo was anything but contrarian.
One of the more interesting alternative investment options came from our friend Geoff Anandappa of Stanley Gibbons. We co-sponsored a luncheon with his London-based company, the “philatelist to the Queen” and one of the oldest and most influential stamp companies in the world. Geoff explained why one famous client – Bill Goss of Pimco – said that stamps were “better than stocks.” This was after he sold part of his collection at auction and made millions for his favorite charity. To learn more about a unique investment program Stanley Gibbons has developed, just click here.
Overall, my first visit to Montreal was extremely positive. It was like visiting a small slice of Europe in North America. But I wasn’t there as a tourist. I was there to offer options to concerned investors who took time out of their busy schedules to get the information they wanted.
Mission accomplished.
The message from the sovereign individuals at the conference was loud and clear: Buy gold. And buy it now.
Rich Checkan
If you also hear opportunity knocking, and would like to exchange some of your depreciating dollars for the world’s oldest and best money, simply click here to learn more about building a golden lifeboat. Or call us toll-free from North America at 800-831-0007, or at 301-881-8600 from anywhere else.
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