BEWARE OF FINANCIAL “BLACK SWANS”
Savy investors understand that Bear Markets destroy Financial wealth. Although the media loves to overhype volatility and speculation as the “end of the Financial World” as we know it, reality shows us that 10 – 20% market corrections are now commonplace! In 2022, Financial Markets lost over $280 billion in client value and Markets are still standing! However, there is no doubt that significant wealth will continue to be lost as well as gained going forward!
When a buildup of negative factors align against Markets, prudence dictates that responsible planning to protect your hard earned wealth should include a Diversification strategy highlighting safety and protection from volatility! $280 billion in lost Stock Market wealth, the real threat of Recession, a potential 5 year FLAT RECOVERY, high interest rates and stubborn inflation certainly count as flashing red lights for Markets going forward!
While high interest rates and inflation are significant enough on their own to adjust Markets downward, perhaps no single event presents more volatility and danger to Personal Assets and future Wealth Accumulation than “Black Swan” events!
The term “Black Swan” event was coined in 2001 by a prominent Wall Street trader. The definition of a financial Black Swan is “a fast forming, supremely negative event leaving widespread destruction with a notoriously uncertain exit outcome”! Of course, in hindsight, the warning signs of every previous Black Swan event have been proven predictable based on known negative conditions leading up to the event. Why then was no one “ringing the alarm bell” and warning the private investor? The answer could very well be that no one was listening over the hype, or it just may not have been in the Broker’s best interests to do so.
Recent examples of Black Swan financial events include the Covid Pandemic, which has cost Trillions of dollars in losses on just about everything! The current Russian aggression in Ukraine is the most recent Black Swan event currently causing havoc with the World Economy. The DOT.com bubble in 2000 and the near World Wide Depression caused by the Financial crisis of 2007/8 are two other Black Swan events. In summary, over the past 23 years, there have been 4 near catastrophic Black Swan events that have rocked the North American economy. The after affects of 3 Black Swans are still being felt and the fourth, the Russian invasion, could cast its’ negative impact in the form of a flat recovery on the World Economy through to 2030! Markets are already factoring more risk into short term versus long term instruments. MARKETS HATE UNCERTAINTY!
THE “SHADOW” GOLD STANDARD
In 1971, the United States abandoned the old Gold Standard to curb inflation and, more importantly, to prevent foreign nations from overburdening the monetary system by redeeming their dollars for gold. In 1982, Fed Chairman Paul Volker was the first to base monetary policy on a secular pattern of spot commodity prices. It was similar to the Gold Standard except that a basket of 25 select commodity prices were used instead of just Gold. IN EVERY QUARTER FROM 1982 ONWARD, U.S. MONETARY POLICY HAS BEEN GUIDED BY THE SPOT PRICE OF A COLLECTION OF COMMODITIES, (EXCEPT FOR THE PERIOD 2005 – 2010 AND IN RECENT YEARS)! In the brief periods that Government has not followed this Shadow (Gold) Commodity Standard, volatility has resulted in economic chaos!
Most owners of Gold coins and bullion for Investment purposes are not generally aware that Private Investment holdings accounts for only a small percentage of total Gold supply. According to the World Gold Council, only 22% of all Gold ever mined has been held in Private hands. Industrial uses for Gold and Jewelry manufacturing historically have accounted for almost 50% of all Gold mined!
PERFORMANCE STOCK MARKET VS. SELECT COMMODITIES: GOLD, SILVER & COLORED DIAMONDS 2005 – 2022
There is one commodity that potentially stands above others as a Hedge against volatility and as a Wealth Accumulation Vehicle! Independent research conducted by Citrin Cooperman & Company LLP, on behalf of the Fancy Colored Diamond Research Institute shows that select Natural Colored Diamonds have rewarded ownership with double digit average yearly growth over the past 17 years, consistent with returns from the Dow Jones Stock Market during the same 17 year period. Unlike stocks, gold or real estate, which are forecast for single digit flat returns over the next 6 – 8 years, this commodity should remain as a double digit growth option. DOUBLE DIGIT GROWTH and PRIVACY OF OWNERSHIP are compelling reasons to at the very least investigate Select Hard Assets as a Wealth Accumulation vehicle. To see if Hard Asset ownership is for you as a Diversification tool and potential Insurance Policy against volatility, simply fill in the enclosed self addressed card and drop in the mail. Education is the key to making an informed business decision. There is no cost to you and our newsletter service is FREE!
STOCK MARKET PERFORMANCE 2005 – 2022 VERSUS SELECT NATURAL COLORED DIAMONDS, GOLD & SILVER
Open Account – $10,000 Minimum
At Phoenix Asset Consortium Ltd., an account can be opened for as little as $10,000.00. To get the facts on Best Hard Assets to Invest In for Estate Planning, Investment Privacy, Wealth Protection and Asset Accumulation purposes, email us at info@phoenixassetconsortium.com or call us at 416-679-0580.
What measures are governments taking
to track wealth movements
With money moving around the globe in greater volume – and at a greater speed –
than before. Governments are working hard to keep track.
Colored Diamond Jewelry & Gemstone Jewelry
Luxury Watches
Buying a luxury watch can be a big decision. Look for the firms that have a fortified grip on production, distribution and value. Those firms include ROLEX, PATEK PHILIPPE, AUDEMAR PIGUET and RICHARD MILLE.
Discover More
Exit Strategies for Clients Involved in Hard Asset Investing.
Colored Diamonds / Gemstones / Watches / Jewelry
- 1) Auctions
- 2) Private Client Buy / Sell Marketplace
