 There is no denying that “a chain is only as strong as the weakest link” the same principle applies to a financial portfolio. Over the years I’ve had the privilege of working with experts in different sectors of finance and we all share a common understanding; investment portfolios must be diverse in assets and properly managed.
As markets continue to evolve and new products and strategies arise your portfolio must adapt and adjust to capitalize on these opportunities. Business owners in Ontario have seen a serious government crackdown on corporations imposing heavy tax consequences when drawing income. Fortunately, there are experts on my team that can assist in strategically structuring how you draw income that significantly reduces the tax burden. If you own a corporation, I’d recommend you get in touch with us as soon as possible, we can help! My home is my ticket to retirement, one of the greatest financial safety fallacies of all time. “Own your home and it’ll fund your retirement” I’m sure we’ve all heard this over the years. Sadly, that concept couldn’t be further from the truth. My father, a wealth manager with 37 years experience and owner of WMS Financial loves to ask this question at his seminars. “If you won a million dollars, would you go into your back yard, dig a hole and bury the cash in the ground for 25 years?” the most common reply is no. “If you own a home, then that’s exactly what you’ve done.” Considering the cost of fuel, real estate, food and energy, along with day to day expenses associated with life we need to invest more strategically. The team at WMS Financial can help you make that equity work harder in a secure environment maximizing tax efficiency and ROI. Interested in finding out more about how WMS Financial can help you, send me a message and I’ll put you in touch with them today. Inflation and the prospect of de-dollarization. Central banks worldwide are racing to devalue their respective domestic currency so we all need to recognize how this impacts us. Inflation, a silent killer that slowly erodes purchasing power forcing families to downsize their lifestyle accommodating this hidden agenda. Think about it like this, when a central bank lowers its interest rates the value of that currency declines. The result, its citizens (holders of that domestic currency) must spend more for the same goods yet tax rates remain the same. This process increases tax revenues transferring wealth to government and penalizes the consumers. Thankfully, there is a simple way to easily hedge your income and protect your purchasing power without limiting liquidity. Global de-dollarization. It’s no secret that President Trump’s latest tariffs has only intensified the global trade war. Therefore, just like kinetic wars, financial wars come with devastating consequences. China and Russia have very publicly established a new Yuan denominated method for conducting trade bypassing the currently privileged trade currency USD. https://www.rt.com/business/423930-russia-china-dollar-trade/ Christine Lagarde, Managing Director of the IMF has recently stated “the same innovations that power crypto-assets can help us regulate them. Purpose built distributed ledger systems could help regulators, governments and markets share information more easily. Combined with other technologies, like biometrics and AI, this approach could help us remove the pollution from the crypto-ecosystem.” https://www.technologyreview.com/the-download/610533/the-head-of-the-imf-wants-to-turn-blockchain-technology-against-itself/ Translation, IMF is looking at blockchain technology as a future for transacting international trade, one more nail in the coffin for the USD as the world trade currency. It is very important to identify the opportunity by anticipating the biproduct of such a historical event and position your portfolio accordingly. Currently all commodities are traded in USD globally therefore all countries are required to hold a reserve of U.S. cash to conduct trade. Ultimately, as countries begin to identify the transition or more appropriately global de-dollarization, their appetite for holding USD will diminish along with the U.S. dollars value. This exodus will most likely lead to a surge in commodities priced in USD prior to any formal implementation of a new trade currency. My suggestion, own precious metals in one of our partners vaults which ensures instant liquidity. All International Gold Vault storage accounts are registered in a bail-in safe jurisdiction. Benefit from the surge but remain liquid to exploit opportunities in other depressed asset classes. To summarize, my 15 + years experience trading physical precious metals has provided me with the strategic relationships required to offer the very best and most competitive pricing on physical gold, silver, platinum and palladium. Working with International Gold Vault Ltd. offers the opportunity for clients to seek the advice of portfolio experts including my my brother Ryan McInerney, Founder of DevCap, Klint Rogers, Private Market Specialist, VP Investor Relations for MY Capital & Obsidian Advisory Group. Michael Sidhu, 360° Wealth Strategies & Solutions Inc. Written by – Rob McInerney [email protected]
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 It's imperative for us to recognize how to financially survive a world of irresponsible monetary policy and excess debt. With fuel prices, food prices, home prices, and stock markets all at or near all-time highs many of us wonder if it'll ever come crashing down or will everything soon be out of financial reach for the middle class? For the answer, we simply must explore the reasons why prices are so high and what we can do to insulate ourselves from further deterioration of our wealth.
First, for anyone living outside the United States and earning income in your countries designated currency we need to look at how it stacks up against the "world reserve/ trade" currency the U.S. dollar. For all my fellow Canadians I'll use the loonie, a great example due to its perceived strength. I remember my friend Jim Rickards saying, " the only thing backing fiat currency is confidence once lost, it's impossible to get back." Canada is on a very slippery slope, low-interest rates, high cost of living and food prices and no room to raise interest rates without causing a recession. I've illustrated in a previous article the strength or weakness of the Canadian dollar comes from the Bank of Canada's ability to manage the overnight lending rate (currently 1.75%) typically if an economy is running too hot (high prices across the board) it is BoC's job to hike rates and strengthen the loonie. Unfortunately, the BoC cannot normalize interest rates due to average Canadian households being overburdened with debt. ($22K average per person) Without those rate hikes, the Canadian dollar will continue to weaken against the U.S. dollar causing higher and higher inflation. The impact will be devastating for fixed income households that simply cannot keep up with the cost of living not to mention the domino effect on housing prices. Consider the conundrum the bank of Canada is currently in, our dollar is losing value against U.S. dollars causing us to pay more for everything we import including fuel. The counter to that is to raise rates and strengthen our currency but that will cause a recession and most likely a housing market collapse. They can leave rates the same, delay the inevitable and watch the value of our loonie slowly erode ultimately causing further inflation and most likely force the BoC's hand into more dramatically hiking rates. Lower interest rates, not an option, that will just accelerate the loonie's decline and risk a full-blown loss of confidence aka Venezuela style collapse. The reality is, all central banks are stuck, the global debt loads are at unseen levels and normalizing interest rates isn't an option. We will see a monetary reset sooner than later if you are interested in finding out more about how that unfolds I'd recommend reading James Rickards book "The Death of Money" available on Amazon. We all need to regain control of our money personally removing the Bank of Canada's privilege of managing the value of our currency in one simple step. Open a physical bullion account with IGV and convert a percentage of your weekly/biweekly pay cheques into physical bullion implement your own personal gold standard. Focus on adding ounces to your overall portfolio as a form of non-currency based liquid asset. This will help to offset the loss of purchasing power while growing a golden nest egg of liquid wealth that can be accessed instantly in a time of need. Visit www.internationalgoldvault.com today and find out more about how you can get started today. There are no minimums to get started, an independent trading platform available for those interested in trading physical gold, silver, platinum, and palladium in one-ounce increments. Financing available! Written by, Rob McInerney The misconception is gold isn’t a viable investment option because it has no yield, and yet that is exactly why gold is such a necessary component to an investment portfolio. Yield is derived from risk, without risk there is no yield. Think about the money in your wallets, it does not yield without counter party risk. A great example is a bank. When you buy a GIC you get a rate of return based on the time you lend your money to the bank. What is the risk? The banks ability to return your investment plus the interest you’re earned by lending them your money over time. This seems like a fairly “secure” method form generating return on your investment but considering there were eight (8) failures in the U.S. in 2017 and 5 failures in 2016 and a further 8 in 2015 risk certainly exists. It’s also important to keep in mind these failures occurred with virtually no market stress. Its important to remember when you deposit funds into a bank the depositor is no more than an unsecured lender to what he believes is a “solvent and safe” institution. Ironically, we still believe that when things get tough and markets plummet they’ll have our money secure. I can assure you they will not! Without warning these same institutions can legally, “lock the doors” and lock you out of your accounts withholding any investments within. This action is called “bail-in” and it has been enacted to protect the banks and prevent another liquidity crisis like the one in 2008. With physical gold no such risk or safety concerns exists. How do you create yield in gold without adding significant risk? By efficiently trading the highs and lows in the gold market. This is important given most gold owners typically employ a buy and hold strategy which leads investors to question the annual cost of “holding” precious metals. International Gold Vault can place immediate buy and sell trades on any market worldwide providing the very best in liquidity and market access. Low supplier costs and zero commission on every trade. Furthermore, the average cost per trade on physical gold buy is $11.00 making it easy to buy and sell for profit, generating yield. The risk being the client’s ability to buy dips and sell highs. Clients of International Gold Vault can place immediate buy and sell trades on any market worldwide providing the very best in liquidity and market access. Written by Rob McInerney  Why International Gold Vault vs the Competition
I’ve spent 11 years working in precious metals and over that time I’ve realized one very important factor. None of the structuring is designed to benefit the client, until now. Below I have provided an example of how IGV compares to the other established Precious Metals companies offering the same service as IGV. Using an initial investment of $10 000 CAD convert to USD 1.2580 rate = $7949.12 IGV charges 0.5% flat fee on funds transfers in and out = $7909.37 IGV supplier spread is dynamic and very competitive (gold and silver) typically ranging from $6 - $18 in gold, .24 -.45 in silver per ounce. Furthermore if, Golds position is bought on Jan 30/18 = 5 ounces + $1206 USD available for storage or to purchase another metal. Break-even for this account is $1342 Bid price or above! If Silvers position is bought at the same time, Jan 30/18 = 457 ounces + $12 USD excess cash. Break-even for this silver account $17.27 Bid or above! Based on the IGV Buy/Sell efficiency, investors can easily exploit market volatility even in tightly traded markets, enabling them to capture profits. Comparing this structure to the competition, hefty commissions eliminate the possibility to trade tight markets and profit. For further clarification or answers to your questions please don’t hesitate to call. No obligation Written by Rob McInerney
For example, in January 2015 the central bank of Canada decided to cut interest rates by .25 % and again in June another .25% at a time when the U.S. dollar vs Canadian dollar was close to par. The results were dramatic to say the least. Gas prices rose significantly and food prices followed as the Canadian dollar began to drop against the US dollar. What was an exchange rate of 1.05 (CAD to USD) in November of 2014, quickly rose by the fall of 2015 to 1.49. In my opinion, this is a classic method in which governments quietly transfer wealth from citizens to government via inflation.
Below is a gold chart illustrating golds performance in Canadian dollars. Note the high in 2011 just under $1900 and golds 92.96% return over the last 10 years. |
AuthorNews & Updates are written by myself or when shared from the industry, credit is always given to writer. Rob Archives
January 2025
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