physical gold: bubble or bargain? why the bull market is not over - abc bullion
TRANSCRIPT
Jordan EliseoCHIEF ECONOMIST, ABC BULLION
Physical Gold: BUBBLE OR BARGAIN?
Why the bull market is not over
Disclaimer
This presentation is for educational purposes only and does not constitute financial advice, either general or specific.
It does not consider any particular persons investment objectives, financial situation or needs. Accordingly, no recommendation (expressed or implied) or other information should be acted on without the appropriateness of that information having regard to those factors.
You should assess whether the advice is appropriate to your individual financial circumstances before making an investment decision. You can either assess the advice yourself or seek the help of a financial planner.
Topics We’ll Be Covering
• Key challenges facing the developed world
• The global economy and the outlook for interest rates
• Diversification and importance of protecting wealth
• Why the gold bull market isn’t over
• Gold in your portfolio and final thoughts
But our economy still suffers
Rates can’t be allowed to rise
Measurement 2013 2017^
Government Debt $16.7 Trillion $22.6 Trillion
Tax Revenue $2.4 Trillion $3.17 Trillion
Borrowing Rate 2.20% 6.00%
Interest Expense $359 Billion $1.36 Trillion
% of Revenue spent on Interest 16% 43%
Where is your money now?
Cash & Term Deposits
Superannuation Fund 7%
Self Managed Fund 30%
Bonds
Superannuation Fund 15%
Self Managed Fund 1%
Share Market
Superannuation Fund 55%
Self Managed Fund 34%
Property
Superannuation Fund 13%
Self Managed Fund 15%
Shares are not cheap
18811886189118971902190719131918192319291934193919451950195519611966197119771982198719931998200320090
5
10
15
20
25
30
35
40
45
50Shiller S&P 500 Price Earnings History
-67%
-78%
-61%
Bonds are near all time highs
19451947195019531956195919621964196719701973197619791981198419871990199319961998200120042007201020130
2
4
6
8
10
12
14
16US 10 - Year Borrowing Costs (%)
Housing – will low rates work?
Beware free tips at the bus stop
Gold market corrections
Gold excels in times like these
History says gold is still cheap
An Explosive move ahead?
Gold in your portfolio
1999 2001 2003 2005 2007 2009 2011 -
100,000
200,000
300,000
400,000
500,000
600,000
700,000 Growth of $100k in Gold vs $100k in Superannuation
Gold Super Fund Super with 20% Gold
Gold – 11.66%
Super Fund – 5.6%
Super Fund with 20% Gold – 7.1%
The 4 most dangerous words in investing are
“This time it’s different”
Sir John Templeton
Find out more
• Fill in the feedback forms (and win a 10oz silver bar)
• Sign up to our complimentary education series
• Consultations re investing in gold
• Go to our website www.abcbullion.com.au to invest
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