A2A with Nick Barisheff

101

Nick Barisheff is president and CEO of Bullion Management Group in Toronto. He's also the author of the terrific book, "$10,000 Gold: Why Gold's Inevitable Rise Is The Investor's Safe Haven". As you might imagine, his background made him a great guest for our weekly webinar series.

Among the topics covered in this 44-minute presentation:

  • How did Nick arrive at the $10,000 gold price that his book suggests?
  • How does Nick's company source metal for his clients and his funds?
  • Is Nick currently seeing any shortages or otherwise having delivery issues?
  • What does Nick think of today's ECBQE announcement and the ongoing Currency Wars?

In the call, Nick mentions a number of links that can be used to access BMG's products and services as well as his book. They're all listed below:

I'm confident you'll enjoy this presentation and you;ll be well-served by giving it a thorough listen.

TF

  101 Comments

Jan 22, 2015 - 3:14pm

Very nice to see silver

Very nice to see silver making new highs for the day right now at $18.46

batting500
Jan 22, 2015 - 3:14pm

Looks like a new face...

Not sure you have interviewed him prior.

Good Luck all...

batting500

​ps turn up the volume a bit, Nick's sound is comparatively light over the phone/web.

pforth
Jan 22, 2015 - 3:29pm

Nick's answer to my question worried me a little....

There has been so much talk of shortages developing and huge premiums for large purchases... I admit that Nick's answer worries me a little. If he can still buy in bulk with no shortages, wait times or premiums is that a counter example against our shortage hypothesis?

Barfly
Jan 22, 2015 - 3:47pm

Nick's answer...

Have to say first off he was a great guest. Very knowledgeable. In regards to sourcing gold in large quantities... I suspect it has a lot to do with how close one is to the vaults. From the sounds of what he said, he's pretty high up on the market food chain. Further down, in Asia, as Jim Willie talks about, for example, it may indeed be very difficult to get one's hands on 100$ million of gold at a time. It is possible that both cases may be true. Even if from a pure logistics perspective.

Bollocks
Jan 22, 2015 - 3:52pm

pforth

Yes, good point. I asked a major UK bullion dealer not too long ago if they've experienced any difficulties in sourcing PM's the last year, and they said (can't remember the exact words, but something like) "no, there are no shortages like you hear spoken about on forums and other places across the internet".

So yes, that's odd. If a bullion dealer was reporting shortages it would help boost sales, so that seems like an honest answer.

Strange.

Whatever, that doesn't change my view on my investment in PM's. I'm in the right place .



AIJ
Jan 22, 2015 - 4:04pm
Dr. P. Metals
Jan 22, 2015 - 4:07pm
AIJ
Jan 22, 2015 - 4:08pm

Not surprising

These moves are incredible. € now down 2.15% ON THE DAY!

lund175
Jan 22, 2015 - 4:12pm

Really good A2A, Turd

Great interview with some insight of behind the scene's on how the gold market works.

Enjoyable and worth your time.

SS121
Jan 22, 2015 - 4:14pm

unedited a2a notes

a2a
nick intro pres bullion management,
welcome
nick- started with bmg bullion fund, open-end mutual fund trust. directly price related as close to bullion in a mututal fund package, for retirement fund requirements.
buy ounces, then allocate the metal. 95% fully allocated
UK and US can invest as non-canadian residents.
see podcast link for more info
nick wrote 10,000 gold. it came out when gold market tanked. :(
book focuses on long term trends, analysis still relevant today
tf: what about ecb and japan printing
nick: race to devalue currencies, cb intervention is a no-go. stock market up, but fundamentally it's bad.
$10,000 gold target correlates to u.s. debt relation. lots of ways to figure it.
tf: what is a fair price.... hard question. how much gold is there? what is the denominator.
nick: yes, the problem is in the denominator. if you want to understand gold, look at purchasing power in long term. gold isn't an investment, it's money in the vault. it's not at risk in the vault.
tf: 1300 is a good deal
nick: yes, production is declining, supply side issues indicate higher prices, manipulation is in desperation mode
tf: ECBQE should see big gold move, why isn't it?
nick: can't have loss of confidence in reserve currency. no fiat has ever continued, when the usd hyperinflates... u.s. just prints. talk of replacing usd with sdr, but china has to have more gold before that will work. suppression to keep gold down allows china to catch up. Jim Rickards, The Big Reset, etc.. all spell this out.
nick: large quantities now must be purchased in daily small quantities for big funds.
johnny: what quantity purchases would move price? 100,000,000 doesn't move markets at this point
??? what about the SNB/currency war thing? Nick: in the race to the bottom stage with currencies but events aren't effecting gdp/econ. conspiracy theories aside, CBs are owned and work for owners.
tf/peter- since no shortages, why do they say west is out of gold and vaults are empty?
nick: comex paper and gld etf don't tie together. shorting comex during price drop gives gld redemtion. very few understand the mechanism. authorized participant agreements have details, china claims many tons. it can be figured mathmatically via leases. gold doesn't add up with geo surveys, math says above ground central bank holdings are being sold out.
nick: people need to get smart fast and buy gold while you still can. when the price rockets, it will be hard to find.

tf: question time, here we go-
tf: angela likes nick, nick likes angela, ??what demand changes have you seen
nick: demand is picking up, coin sales all hitting records, ..general investor sentiment is LOWER than in 1998!
tf: follow up- where do you get gold nick?
nick: scotia in canada, it gets it from mines and lbma members. physical gold isn't purhased via comex, it's an under-counter market that doesn't publish statistics. uses unallocated and allocated account..
tf: so... when you go to get phyzz you go to scotia. nick: yes, but so far no problem. very large aquisitions require constant buys
tf: from peter- rob kirby introduced to fund, holds phyzz at bmg, 1000 ounce bar premiums are tiny. any signs of limitations or shortages??? nick: No, but scotia doesn't hold a lot of platinum always, otherwise.. no. we now offer 500 ounce monster boxes in allocated accounts, have to title bullion so it can be allocated. (premiums will increase also) liquidation is easier for 1 ounce pieces.
tf: from Johnny- what is a large quantity in terms of storing.
Nick: you have no insurance, so at home don't go over 10 to 20 thousand. private allocated gold can be lost in storage if facilities go bust, so it's complicated. go for security, not cheap storage.
tf: time for final 4 question!
FF1: how much snow you got? about a foot
FF2: you're in canada, is this the year of the maple leafs? nick: don't know, hope so
FF3: hardest part about writing a book? nick: every part ends up being harder than you think, esp as things are ongoing.
FF4: 1,300 dollars, you buying gold or silver? nick: Silver (or platinum)
that's the show, thanks all around, -end

excellent a2a gents!

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