Sardines does not even come close.
I’m not sure about the manufacturing process of fishing for and tinning sardines but one thing’s for sure: sardines have more room to maneuver in a standard tin than passengers on the Northern Line from Embankment.
But my face being unceremoniously shoved into a strangers arm pit was the least of my worries on my commute home to the Buckinghamshire countryside from the inaugural Gold, Bears and Traders Show 2015.
The reason for my good cheer was the positively brilliant Willem Middelkoop of Commodity Discovery Fund.
Who Is Willem Middelkoop?
I was so impressed with Middelkoop’s presentation that I asked for his slides so that I could publish them here at sharesandstockmarkets.com but unfortunately he declined due in his words to the ‘high quality of the research’.
Strange considering that 99% of the content of Middelkoop’s slides were from publicly available information such as Zero hedge and CNN – more on that below.
Still, the man knows his stuff.
Amanda van Dyke – who did a sterling job of chairing many of the panel discussions – warned attendees early on in the show that Middlekoop would be someone everyone ought to pay attention to and she was dead on.
Willem Middelkoop is a commodity investor (Canadian junior miners) based out of the Netherlands.
I’m not sure when Tom Winnifrith got Middelkoop from but he made a good call getting him on the roster.
Middelkoop’s central thesis is that there is a monetary ‘reset’ underway and a new global currency is being conceived, with gold as an important component and commodities in general are set for a rise.
This isn’t some nut job conspiracy theorist talking either.
The evidence that Middelkoop presented was compelling and included;
- Billionaires such as Carl Icahn buying into Freeport (NYSE: FCX) and Stan Druckenmiller buying into the SPDR Gold Trust ETF (NYSE: GLD) making it his largest position in his portfolio
- Even though the gold price has been falling, there are junior explorers that have not made new lows in their share prices and have in fact been rising
- The Chinese buying JP Morgan’s gold vault (the largest in the world and directly opposite the New York Federal Reserve) suggesting that the US and China are working together in advance of a global currency reset
- China’s recent announcement of their actual gold holdings: 1658 tonnes as at the end of June 2015 valued at circa USD 60 billion, 60% more gold than it had in 2009 and making it the sixth largest gold holder in the world.
- How the price of gold has actually been rising when denominated in currencies other than the US dollar
Middelkoop crunched a lot more numbers and showed even more compelling evidence than this but I was rather hoping he would share his slides.
The point is that in his words the ‘reset’ is already underway and sees it unfolding over a multi-decade timeline in accordance with the historical norm when the world’s reserve currency shifts to a new alternative.
How Will A Monetary Reset Affect Investors?
The most immediate issue at hand is that there is an enormous opportunity for investors to position themselves either in physical gold or in the junior miners that have weathered the commodity bear market.
There were speakers at Gold, Bears and Traders show and members of the audience who admitted to owning physical gold – either as jewelry or in storage.
Investors should also consider is the violent economic shocks that accompany reserve currency migration. This is in and of itself will present opportunities to buy very good businesses at bargain prices.
Admittedly this is a less immediate opportunity for investors to take advantage of but it nevertheless allows investors to position portfolio’s for the future accordingly.
But for me, the fundamental point that Middelkoop was making was that individual investors have unprecedented access to financial information from credible sources that can help to correctly orientate how to think about the world in which we invest.
For example recent geo-political events are not conflicts of military dominance but rather of economic dominance. This is the correct way to make sense of a world in which heightened tension has become the new norm.
This brings with it wealth creating opportunities for those who are willing to take risks where others are not.
Middelkoop’s value-orientated strategy involves buying junior miners at various stages of the development cycle specifically a the discovery and production phases.
You could also follow Stan Druckenmiller into the SPDR Gold Trust ETF or Carl Icahn into Freeport if you believe commodities more generally are due for a rise.
All in all Gold, Bears and Traders 2015 was a great show that allowed for a range of views and the opportunity to hear the thoughts of some very astute investors.