The Fed has begun the unwieldy process of turning the Titanic.
It didn’t surprise anyone that Janet Yellen chose not to move interest rates at its latest meeting, but it was interesting that she took that first step and acknowledged softness in exports and business investments, while backing off the Fed’s expectations for four interest-rate hikes this year by moving to just two expected rate hikes.
But the Fed has to be careful. Announcing that it was wrong and slashing interest rates would send a massive shock wave through the global markets. And we can’t have that. We’ve got to turn this ship slowly. Yellen starts with reducing expectations on rate hikes and giving little hints that the economy isn’t as rosy as we’ve been led to believe. And then … Bam! Negative interest rates.
No matter how slowly the Fed turns this ship, we’ve got to remember that we’re on the Titanic and we’ve already hit the iceberg. But there are steps you can take today to protect your assets. Let me show you how to secure your seat in the lifeboat…
A Gem of an Investment
Earlier in the week, we learned about diversifying your wealth through the use of collectibles, farmland and natural gas wells. On Wednesday, attendees of the Offshore Investment Summit broadened their scope even more by learning about natural colored diamonds. Daniel and David Metcalfe of Premier Diamond Group revealed that natural colored diamonds have never decreased in value in 50 years at the dealer level. In fact, such diamonds double in value every four to seven years. They went on to show that while the Dow Jones Industrial Average enjoyed an average gain of 3.8% from 2007 through 2015, a one-carat vivid yellow gained an average 4.4% per year, a one-carat fancy purple jumped 13.9% in value per year, and a one-carat fancy blue gained 7.4% per year during that same time frame.
Colored diamonds offer a great store of value and an avenue for asset protection because there isn’t a paper trail linking your Social Security number to the purchase of colored diamonds. Diamonds can be discrete and easily transported. And what’s more, there continues to be a limited supply of high-quality colored diamonds. There are no mines dedicated to colored diamonds; rather, they are by-products of existing mines for colorless diamonds and other raw materials. To learn more about colored diamonds as well as an exit strategy for collecting profits on a colored diamonds investment, click here to order our Offshore Investment Blueprint.
A Word From the Experts on the Fed and Collapse
Also on Wednesday, Jeff Opdyke, Rob Vrijhof and Geoff Anandappa took the stage for the Investment Panel, giving attendees the chance to ask questions. When asked what he believes the Fed will do next, Jeff commented that he believes the Fed can’t raise rates, but has to take into account what’s going on around the globe in terms of other central banks. In fact, he believes the Fed isn’t going to raise rates for the rest of the year.
When looking at the next best opportunities in the market, Rob Vrijhof immediately pointed to gold, and stated that he would definitely be a buyer if the precious metal pulled back to $1,180. He also thinks silver is going to outperform gold. He believes there are some opportunities in Canadian gold mining companies, as well as in some oil stocks, now that crude has put in a bottom.
Geoff Anandappa, specializing in collectibles, revealed that over the medium term, there are some interesting opportunities in Asian stamps, particularly for China, Ceylon and Malaysia, as well as in Indian coins. Modern first-edition books are also seeing returns similar to coins and stamps. They remain modestly priced and undervalued in his opinion.
Jeff Opdyke continues to be a buyer of gold in the medium term. The yellow metal is excellent governmental insurance, fiat currency insurance and economic collapse insurance.
To see the entire panel and hear all their great investment advice, as well as asset protection advice from Ted Bauman, click here.
Nothing Happens Here … And That’s Good
The old saying, “No news is good news,” certainly applies to Uruguay. And for anyone looking to purchase real estate in Uruguay, that’s a bonus. Before we headed out for the real estate tour, Sancho Santayana of 360 Terra International Realty took the stage to give attendees some more information on Uruguay.
While Uruguay is a small country with a population of only 3 million people, it is one of the world’s champions in per capita food production. The country experiences no natural disasters, has no deserts or mountains, but has a massive expanse of flat, arable land and gently rolling hills. Uruguay has a democratic political system with very little corruption and officials who are accessible. The education is excellent with a literacy rate of 97%, and the internal security is strong with a low crime rate and little to no violence.
To get all the details on Uruguay, as well as see the real estate tour that took us through both condos and houses around the Punta del Este area, click here.
It’s the last day of the conference, and there’s still a lot of information that will be presented. We will be hearing from American expatriates who have moved to Uruguay. We will be hearing about banking in Uruguay as well as gold storage. And there’s a panel for our Uruguayan experts, who will be answering attendee questions.
I won’t be able to write it all down, but you don’t have to miss a second of this great information. Order the Offshore Investment Blueprint kit so that you can get every second of the presentations as well as videos of the farmland and real estate tours. For full details, click here.
Sr. Managing Editor, Sovereign Investor Daily