Gold news

 [Music] I'm Charlotte McLoud with investing news.com and here today with me is Ivon blasik president and CEO of BMG group thank you so much for joining me great to have you here my Pleasures thank you really good to be speaking with you we've got a lot to go over today I thought though that we could start with a brief introduction to you and how you got into the precious metal space I think many people in our audience will probably be familiar with BMG group through Nick barf who sadly passed away

last year but would love to hear about you and yourself so I have been involved with Nick for for many many years um personally I have served on a board of directors of BMG for over a DEC decade including older subsidiaries uh I'm also Chief Financial Officer for our mutual fans which are backed with gold um I have been a um um in this role uh for since last year since n passing and it was very very smooth transition because I work very closely with him and I'm very much a was very much hands on

involved in all the aspects so that's really really great um personally I am uh absolutely focused on geopolitics economy and finance because in my passion on my life and and um it is very interesting right now that there such a great Focus all that's happening outside not only domestically and how it impacts gold viat currency and everything else okay good to get a little bit of an overview of your background and your interests so of course today we're going to focus on gold and with the

geopolitical angle where I wanted to start is with the bricks because I know you have a strong interest there so toward the beginning of this year we saw a number of new countries officially added to the bricks and I saw an article the other week that said there's more than 30 countries right now that are interested in joining so lots going on there of course that has implications for deiz and by extension for gold so curious to know what you're watching in terms of the bricks this year what

developments you're looking for uh this is actually very interest interesting phenomena um bricks itself uh started as a as a alternative kind of a coalition or a block for trading on economic not not necessarily political power but the actors in that organizations are are on the opposite spectrum of of the western economies and and North American in particular and European so bricks influence and the potential the uh for the goldb currency is very very important and I think very critical there's not enough I think

attention paid to that we are so focused on the domestic influ factors that influence prices of gold or interest rates elections and those kind of things we don't really understand a what gravitates different countries to join bricks uh you have to really understand a history and and a kind of geopolitical and cultural background of many of the countries many of the members of bricks are the emerging economies and a um they they are a basically pushing away from the dependency on US dollar in the local at

the local level a lot of those countries do not uh um uh have as official currency US dollar however the trading increas a lot of issues not only the price of US dollar but but also the fact there is a underground economy and a lot of other things that damaging those countries per se also the other thing is a issue of Fiat currencies a lot of the bricks members watch to and some of them already have back their currency with actually gold with the precious metals and and that will gives them the strength that we

don't have in our economy currently um also um most of those countries have been a um accelerated recently most recently last few years due to the sanctions uh the sanctions push everybody into arms of bricks the sanction is also a um um more importantly um where um um are very very dangerous in terms of a um a departure from Swift it's it's a incredible day danger for for a uh for many countries to actually start trading internationally on other systems as I'm I'm sure you are aware of the fact that

in 200 I think 14 Russia developed the crossborder interbanking system that right now actually um right now there is a um 500 50 organizations from 154 countries from 64 countries are using their system that means they are not using Swift but many of them they use both China in 2015 developed also system uh called sips also crossb system which is a very very I think right now is probably huge huge competition to Swift uh China has a uh some of the shareholders of that of that uh um uh system are um um New Zealand Bank uh

Paribas French Bank um uh many other Banks including HSBC uh and they are trading mostly in Asia but everywhere else in un so that creates a um alternative the alternative that will actually eventually a uh fil the void which is a political and other kind of a a a um areas that are not necessarily directly involved in in a um in prices of gold but that indirectly they will influence push for gold um there is a the bricks countries are are not only geopolitically aligned but there are huge economic and political

block right now um when you go back into history you know how different a uh blogs and civiliz Iz ation fell and and and were you know the disseminated uh this could be a turning point for the financial world and political world as we um know right now uh the political changes are not visible to everyone you know there are they they because they have too many facets there are too many uh variables at the same time working uh uh that affect at at the end of the day the financial systems bricks right now is a um I think um huge

huge competition for the hemony of us door as a reserve currency um there are people there are experts there thinking that perhaps un is going to be the the next reverse currency there are some experts analysts think that there be total collapse of US dollar which I do not think I think what will happen the the the hemony is going to be kind of diminished and and the uh US dollar will not have such a wide use as right now International Trade also just most recently a um uh French president um macron uh was concerned about the level

of debt of over 34 trillion dollar US debt which affects the the US dollar uh the concern SP because of the Euro their own economy there are so many other factors but those kind of issues were never voiced before so right now there is a ongoing concern um in terms of the US economy what is happening to US dollar and and and Bricks is growing growing and growing more and more countries are joining it I was just looking at the map the kind of you know the the global map and when you think about it from every

continent from every single continent except except at North America except North America every body pretty much joined bricks right now bricks has almost 46% of the total population of the world maybe even more if if we add all other small countries they have a um uh they are they have over 40% of the oil production and oil Transportation they have a uh almost 40% of the global territory with all the natural resources uh they have a huge the major the founders which is China Russia Brazil they are they have incredible

potential in terms of a changing a and and and affecting the um the US dollar and of course the prices of gold most of the scatches there few reserves of gold the central banks are buying gold like this no tomorrow and they keep on buying uh they kebo bik for a variety of reasons that I'm going to mention uh shortly uh so so bricks is bricks is basically I think a one of the um biggest um economic political blogs that is going to become very powerful in our recent history so that's that's there is also

another blog is Association of South soueast Asian na Nations and a lot of them already stopped using US dollar as a trading currency then using Chinese Ur and and maybe you know they will a lot of those members are also are joining or joined or like to join bricks so that's that's um um uh very very concerning now um there's beside the economic cooperation and politics of it I think none of those countries except for for for just small kind of scrimish and and and hot flashes politically are involved in any any kind

of military major conflict uh there is a conflict of course between Russia and Ukraine uh that is ongoing uh but the brand of that conflict also is Burn by us the amount of money and by European countries that is being put into that conflict is continuously weakening their economy which has again impact on on on US Dollar on Euro but most important is the impact on gold gold was always forever and ever SA safe heaven during the time of Crisis during the time of geopolitical cult during the time of economic conflict

capitalisms and and gold is money and uh countries that have gold uh will not perish gold will never disappear will never be zero will never diminish it's the physicality of it is is going to prevent that gold fluctuates and I think there's a misconception because gold fluctuates on daily weekly basis but overall on the annual basis over a period of time gold is the uh fabulous fabulous place to be so those countries bigs countries they think in a very simple terms you know if gold was still in do or something in the in the

60s right now is over $2,000 that's incredible growth and and in incredible safety uh so and that's that's the main of reason that that that many of those small countries the emerging economies they are poor they don't have a same infrastructure as as we have in the west they are gravitating towards some alternative that will give them a sou of a future um there are other countries as you know like Argentina that was going to to uh join uh bricks and and their new president decided not to um and I

wrote in one of my articles actually probably kind of a uh um it was welcome probably by by bricks countries because Argentina has such a history of a economic collapses with a huge debt uh and that would not be a sort of a good addition for the emerging countries that that trying to um move forward in their economy uh Argentina is a extremely rich in in in in natural resources and gold uh they are seeking to um uh basically replace their currency with US dollar which will be very detrimental could lead probably to

some a uh huge social unrest um but uh perhaps you know they will consider backing it with gold that would have been one very interesting alternative that would definitely be that would be very interesting to see so we'll keep an eye on that one and you know that was a great overview of what's going on with the bricks and other factors that are affecting gold I think there's a couple of points we should go back and pick up on so you mentioned the Central Bank buying of gold we had a

record here in 2022 and I believe 2023 also very strong but not quite beating that record for the central banks and who's buying in terms of the central banks I think really highlights that East West divide that you were speaking about exactly China Russia when you look at the who is buying the the same countries that are members of bricks uh Poland was buying a lot of gold other countries smaller countries so there's a increased interest in in in in accumulating reserves of gold uh the

concern that that I think is probably not uh that well articulated is the fact about supply and demand supply of gold as as a as a supply of gold is shrinking the above gold the refine gold the prices are going to probably Skyrocket at some point also a uh um current prices of a um of gold are creating a kind of a balance political balance because when you look at the amount of gold that some Ro countries and other ones have should the price go to $10,000 as Nick was predicting at some point there'll be a

huge a uh swing in terms of political and economic and and military power so I think I think the the gold probably is going to be um um steadily increasing unless there is some unexpected turn for example if should bricks announce the currency uh Reserve currency backed by gold and should many countries back their local currency in Gold that would the prices will surge dramatically also a um I think in terms of a um availability of gold globally uh is going to be to be a uh uh problematic uh and again that will push

the prices uh the scarcity of gold uh that would push the prices of gold up or could dramatically Now worse if there is any kind of a um conflicts that are going to to develop uh to something more serious uh than just a localized conflict but when you look at what's happening for example in Guyana Venezuela who is a has incredible deposits of oil oneir of the world 30% of the world oil Venezuela suddenly revived its claim to S territory that was in dispute for very very long time with Guyana which is

mostly jungle uh probably very difficult for gold exploration and my personally I don't think Venezuela really needs to have another source of gold I mean oil but gold I do believe that the focus is on gold the gold deposits in that territory of Guyana is that's where everybody is going to be looking for I think that's that's that's what is happening everybody's thinking of oil the offshore oil uh there is a huge deposit of oil actually all over the place uh in that region but I think is there are there

could be the quest for gold because again the the this the future scarcity of gold the the um um the kind of a Renaissance of gold the gold is going to be one of the most important I think I think factors that will shape not only economy and and and and um politics but also what will shape is is daily lives of people uh I think you know average person does not realize how exposed they are how vulnerable they are with the level of debt with with the um um uh everything that that they believed was a normal way of of of of uh

not only surviving but no the way of of managing their own domestic economy now of course you know the the interest rates are very important the the promised or the anticipated interest casts are going to stimulate the economy are going to um have a positive impact on the um households in the America in particular in Us in Canada but at the same time that will not relieve the debt that exist that national debt is is is a uh is going to be at some point unmanageable uh the other thing is beyond that is the fact that a uh all

those all those countries are going to be looking at at a trading with each other they have huge for example India uh China they have incredible possibility in terms of the the consumption of different products they may not really need European countries to do that so again there being a huge disadvantage uh economically and and of course politically as as a spill the other thing is wors uh military conflicts um there is a huge amount of of of of money and debt is growing uh being a um um put towards a um proxy

wars proxy conflicts a proxy political involvements uh and the public is just uh getting to kind of with the with the with internet get that kind of information but it's not really visible so unless you are looking for it people don't see it everybody goes on with their life nobody's really aware what is what is happening the kind of a uh um impact that has on individuals when there is a billions of dollars that are being put into some countries thousand of miles away uh what kind of impact Security

National Security um those Wars proxy wars and all those flash points don't necessarily provide a secure environment for us in North America in Europe yes Europe has a proximity to a lot of The Flash points but it's a it's again it's a it's a very interesting you know um um component that that a lot of people don't really get engaged or realize or understand now many of those Wars are based on historical uh and cultural uh um foundations that we do not understand that that the world

doesn't understand and on the surface they seem to be something you know that we should be involved in but maybe perhaps you know some diplomatic Solutions and some other Solutions are are are probably more appropriate than than armed conflicts uh though every time there's a war and there's a destruction there's tons of money being made onlyb building the countries so um and interestingly enough I looked at the relate prices and some of those countries and I was in shock that territories that totally deiminated

practically have unable high prices then before the conflicts they didn't so this is a very interesting thing happening I remember when uh um uh there were wars in the past 23 years ago companies that were involved in in construction in building they were they had a fantastic prospects they were booming so there is a two sides of War there is this this destruction and there is a incredible profit but again going back to gold and going back to to to a our fiat currency and our economy uh it the the the uh

benefits of it are problematic yeah I think you did a great job of outlining some really big themes that people probably aren't paying as much attention to and that's it's really great to hear I learned a lot just listening to you right now so I do though want to hone in on things that people might be paying attention to and I know a lot of people are watching the fed you mentioned interest rates a little what's going on there so I want to ask you know what do you see coming from the fed this year just because I

know that a lot of people have their eye on that the interest rates um you see the interestes I do believe are going to go down definitely um uh for variety of reasons uh the the uh when you look at kind of average person at their mortgage or people they have some you know some Investments there a uh cash flow personal cash flow diminished that in addition to the purchasing power of of of of of of the fiat currency is also diminishing so that will help that will help to stimulate housing construction there be

more disposable income so it will stimulate other parts it one way to I always thought to to address a uh um you you can do two things actually when you have a problem economic or financial you can cut expens and squeeze squeeze squeeze right or you can basically free uh the um uh available uh um um spending doors give it to give it a chance to actually go back to economy and rebuild itself so so on the on the for for individuals through people the big concern as if was speak in the US our domestic um um our neighbor where has a

huge impact on our economy we actually you know uh integrated pretty much uh together and the European economy as well to some degree uh number one now big issue is the US election us election is a huge huge a uh focus of everyone uh the anticipation is to have a strong Republican leadership uh that's what the anticipation out there is at the same time uh divisive narrative so you have two things happening there will there be a uh some uh pluses but also you will have the other opposition and that that that kind

of narrative is never healthy uh never especially the time where is another opposition brecks and things are happening outside North America that will influence North America the other thing is a crisis on the border that's going to have a huge impact on every average person in us for very of resour that that you know you can read about and and you hear about that now the other thing is a um I think the challenge to US economy overall there were some banks failures as you know that creates fear um being a um fear as

a stimulus for anything is is a um wrong way to go but fears usually generally stimulate people toward something and the funny thing that I should mention that uh gold as a last kind of a resort last Safety Harbor in the in the times of Crisis many people go towards gold when it's when it's you know already that Fear Factor is very very significant at the same time when you look at gold some people ask me actually oh my goodness oh why I didn't buy gold or St was now so why should I buy now well if you don't

buy now it's going to be much higher year from now two years from now so it's kind of a um uh uh but people don't look at it the general population the sentiment is not there though I have to tell you that that I just um where was I was reading that that uh um uh in some uh for example a um uh in in in Georgia Kentucky uh Wisconsin and kasas the lawmakers they produced the pro metal or Pro precious metal bill they are here removing because they had taxes on precious metals they removing it so so there is obviously

politicians are moving that direction even in in in a four states that means that there is a sentiment that oh my goodness you know this is where where we're going we're moving towards that so let's let's do something proactive uh the other I think think um um is a um there are conflicts a lot of conflicts also in the industrial sphere in in in a technology there are a lot of a uh changes that that that I think U um I sometimes I think that human evolution is much slower than a technological and

other developments so we're kind of stuck still in a in a um uh a real primitive stage when everything is moov so fast and is very difficult to grasp so as all those things changes eventually eventually I think I think uh there'll be some sort of a bottleneck where will be very difficult to decipher what is the the appropriate uh um uh policy what is the appropriate Avenue for a for prosperity for security for cooperation um but usually after the area of division divisiveness is a kind of area of Peace where everybody start

cooperating together and and and and looking at things differently holistically there are many experts but many experts are very narrow so they have that field of that spere but now I think to understand what is going on you have to look globally you have to understand you have to understand culture and you have to understand politics each site has its Story Each site is right for them not for the others so what is the mutual kind of a ground of that that will work for everyone now I think I do believe in

Precious Metals I do believe in gold silver as well not only because it's money and he's been always the money but there is something that is a uh for perpetuity and and as much as governments can regulate the interest rates and everything is by printing fiat currency fiat currency um is going to be um I think marginalized in the future in some countries when you look at we have a poster here with a different currencies don't exist anymore you know has to have few million of their currency to buy bread you buy milk you

know you can't even carry that even uh so it's it's it's it's different it's interesting but I think we are witnessing history I think we are witnessing a great change um there are many events just occurred in last you know week or last few weeks few months there are Game Changer and for for for the world as you see it today economically I do believe that to be safe to be um certain and not as a wealth preservation only but as a as a um uh Diversified kind of factor to what

we have in investment gold is absolute necessity uh silver as well silver is less expensive you know it's it's more attainable for a lot of people but when you think about there are other gold products for for example instead of buying one ounce of gold for you know over 2,000 I'm talking US Dollars uh we have for example products where you can you know all as we have a exposure to to to gold in in other you know Financial products that that are inexpensive um diversification is very

good it does not mean I'm not a proponent of people dropping everything and running you know sell your house buy gold move to the cottage get lots of cognac and wait for the you know for what will happen I I'm a proponent of growth and balance I do believe that having a gold in your portfolio in your in your even average person can have some gold or some silver in their Investments and that will hedge against any kind of risk future it will fluctuate so so I think the one thing I I cannot stress people look at say oh my

goodness you know gold will went down by $1 by 30 cents by $ doors with up by 10 this is not how you look at it um uh from the consumer perspective they have to look at the long term long range from the investment that's another story if you're hedging you know against all those fluctuations that's that's appropriate of course okay I think really good overview again and great advice for investors who are looking at this situation and might be a little bit overwhelmed about what's

going on I have one final small question for you before I let you go and that is if you have a price outlook for gold in 2024 or perhaps Beyond I know we just talked about how maybe you don't need to pay close attention to the price but just curious to get any thoughts on on numbers there on annual basis I think I do believe that the price of gold will go to about U uh if if things go you know like all you know like conservatively right now to about $2,300 in 2024 some analysts think that in 2025 is

going to be 3500 but I wouldn't be surprised if a search above that should the political conflicts um um spill into kind of involve the broader broader um um uh territories more more resources More Money More countries being involved that would put the pressure of C go up uh should the for example in Yemen uh the cooies and all the conflicts there if they paralyze the the transport of oil if they paralyze a a um um uh if they affect anything to the to the greater degree the the gold price could

go to to to some shocking numbers the thing is gold will always go up and and it will never disappear but now is the is the time of what time frame we are talking about so this is this is the the kind of a question but definitely uh I think I'm looking towards a um uh by the end of 24 to be around $2,300 that's what I'm sort of seeing right now um I'm hoping for more uh from our company perspective we we have a we have plans and Nick s of $10,000 an ounce I'm still there I'm waiting I don't know when that

will happen um but um the other thing is I think that the supply of gold this is a big concern as well that that that as much as the price will go up the supply of gold will shrink uh the the the exploration for gold will increase but to have actually the production and the sufficient uh um um output is is takes time so in the meantime that's going to be to be difficult uh I think I think in closing what I would say that they you know every person should really take a look at at at uh how they can uh acquire some

of the goal in their in their I portfolio is a big word for average person but in their in their a um um in possession um and and again I would urge people to come to our company we have a incredible products um uh and we are um regulated because we have mutual funds uh we have a physical gold and we have a 20e reputation and and um um and I think the most important is the fact that we um understand how important it is on the personal level even even even institutional level you know that should measure the then

actually very interesting a lot of pension F fans are running into problems I've seen some Pion plants that are are really I are eating away at the principal amounts I had I had people showing me what's happening to the persion plants Pion plants typically don't have a physical booon as a stabilizer they have some other products you know gold related or or the bu rated product but they don't have gold um having a physical gold in on the institutional level uh definitely uh would would um uh prevent from

pressure PL even even collapsing or or or or or for the pensioners having their their pensions reduced dramatically and will be focusing on that as well to to work with the with the institutions to open their uh um doors to that kind of a product uh as you know the sentiment for gold uh is right now very good and I think the understanding is much better in the mainstream media you can you can hear or read about it and that's very important I think for average person to learn and to know and to understand and to know

what they're investing in what they're buying and and of course they should ask their professional financial advisors to you know to see if they should invest in in in in the and gold products however you know it is still a um I think great opportunity right now um at the price of around $2,000 an ounce uh and the silver is something to watch for it's coming up okay I think I think that's a great place to wrap it up for now but we love to come back in the future talk more about gold and maybe about silver next

time thank you so much for for going over all of your thoughts I think I have a really good idea of your thinking about gold and geopolitics this is really good thank you of course and once again I'm Charlotte McLoud with investin news.com and this is Evon blasik with BMG group thank you for watching if you like this video make sure you subscribe to our Channel we'd also love to hear your thoughts so leave us a comment below we'll see you next time