Nick Barisheff: China Stockpiling Gold will Devastate the Dollar

Tom welcomes Nick Barisheff, President and CEO of BMG, to the show. Nick started the BMG fund in 1998 to create a safe precious metals product that qualified for Canadian retirement accounts. He wanted it structured so that there could be no interference or encumbrance with the bullion.

He discusses the risk of confiscation of gold and why the correct term should be "expropriation." Currently, the chance of this action seems remote since the price would need to be a lot higher. It's more likely that governments would instead tax excessive profits on these types of investments.

When you compare US debt levels to the current price of gold, we are still quite undervalued. Money printing has grown dramatically, and soon they will need to stimulate the economy again.

Further defaults are coming this fall, and we will likely see a pattern of cascading failures. These failures will occur across sectors like commercial real estate. Also, there is a general exodus occurring from the cities to the country.

Nick discusses the increasing demand for metals and the possibilities for a failure to deliver in futures. He cautions that the Comex can always change the rules.

China has stated that they want to have more gold than the United States. Both China and Russia have been keeping all the gold they produce. China has been acquiring gold through their sovereign wealth funds while under-reporting. He thinks China will not announce they're true holdings until shortages develop. When China proves ownership of 10,000 tons, that will also reveal to the world that the US no longer has the gold it claims.

Time Stamp References:1:00 - How he started the BMG fund.2:55 - Minimums and there other funds.4:10 - Portfolio allocation recommendations.6:10 - Storage risk considerations.9:10 - Collectible forms of precious metals.11:25 - Correlating gold with US Debt.12:40 - Real estate crash and debt concerns.15:55 - Force majeure clauses in leases.16:50 - Comex concerns and delivery demand.18:04 - China's physical gold holdings.20:30 - Risk to the US dollar.21:20 - Why miners should hold gold.

Talking Points From This Episode

His funds for Canadian InvestorsPortfolio allocations in today's environment.Risk of "expropriation" of gold assets.Default cycle in commercial real estate.China and Russia gold holdings.

For the past 20 years, Nick Barisheff has focused on the world of precious metals and the benefits available to investors who hold physical gold, silver, and platinum bullion. As president and CEO of BMG, he uses his understanding of the precious metals markets to develop strategies, products, and services for clients looking to integrate bullion into their portfolios. His view on the precious metals sector is that gold, silver, and platinum, in bullion form, are a vital component of a client's financial program and should make up at least 10 percent or more of a well-diversified portfolio.

In 2002, Nick launched BMG and BMG BullionFund, Canada's only RRSP eligible open-end mutual fund trust that purchases equal dollar amounts of gold, silver, and platinum bullion. Subsequently, BMG Gold BullionFund and the BMG BullionBars program were launched as part of its growth initiative. The BMG Silver Bullion Fund was launched in 2016. Nick specifically designed all BMG products to avoid compromising any of the fundamental attributes of precious metals ownership: absolute liquidity, no counterparty risk, and no reliance on management skills. In 2011, BMG became an Associate Member of the London Bullion Market Association (LBMA). The only other equally accredited company in Canada is the Royal Canadian Mint, the Crown Corporation that produces Canada's currency.

Widely recognized as an international bullion expert, Nick has written numerous articles on bullion and current market trends that are published on various news and business websites. He has appeared on BNN, CBC, CNBC, and Sun Media.