VIDEO — Nick Barisheff: Investors Liquidating Gold — "It's Never Happened Like This"
BMG Group's three precious metals mutual funds are faring better than others, but are still facing a high level of redemptions right now.
Nick Barisheff: Investors Liquidating Gold — "It's Never Happened Like This"youtu.be
As market participants continue to grapple with inflation, some are having to sell their gold.
Nick Barisheff, CEO of BMG Group, said it's the worst year ever for mutual fund redemptions that he's experienced. His company's three precious metals mutual funds are faring better than others, but are still seeing investors cash out.
"It's never happened like (this). We've always had very minimal redemptions," he said. "But now we're getting redemptions even in the orders of bullion bars, which are normally never redeemed, never traded — (these investments are) sitting in Brink's and so on. But now we're seeing people having to liquidate their physical bullion holdings as well."
Investors access BMG Group's precious metals mutual funds through financial advisors, and Barisheff has heard from these financial advisors that their clients are making redemptions because they needed access to cash — for example, to keep up with inflation or for mortgage costs. "That's a very bad sign going into 2023," he said.
Gold didn't act as it was expected to in 2022, and according to Barisheff the US dollar's strength is the main culprit. Next year, however, the American currency will face numerous macro risks, including China and Russia's push for a new currency that would be used by BRICS nations, and the potential for Saudi Arabia to price oil in a currency other than the US dollar.
"If any one of those things happens, the reserve currency status of the US dollar is over," he said.
The yellow metal could also be pushed higher by any number of black swan events, but Barisheff noted that when that happens it will probably become tough for investors to get their hands on gold.
"The people who have delayed and waited — when they finally come around to deciding they need to buy some (gold), not only will the price be much higher than it is today, but the availability would be considerably less," he said.
Watch the interview above for more of his thoughts on gold, silver and the stock market.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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