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March 7, 2008

Invest in Gold

President Yar’ Adua regime brought a lot of scare to heads of different government parastatals from the removal of the Head of NNPC to the restructuring of the EFCC. I personally believe this scenario immediately caused panic in the camp of Professor Soludo because he immediately reacted with the a “not too familiar” economic reform; deleting two decimal places from the value of the naira. If you have a thousand naira, your money is immediately valued at ten naira. The explanation was very simple; it would force the dollars to come down and improve the economy. I personally do not think this is true and I believe it was politically instigated. But on a personal level, my reaction to this announcement was how I was going to profit from this policy. I immediately knew that substituting my cash to liquid asset was the key to the solution. 

Everybody must be conversant with the economy because an economist is far important than the doctor because a wrong prescription by a doctor can destroy one patient but an economist can destroy a nation of more than 150 million people spiraling to generations after that may never be able recover from such prescription. It was my duty and obligation to stay wealthy and not blame the government for whatever happens to me. I knew first hand that placing band aid to a deep injury can never cure it so I felt the “decimal-removal” that was prescribed was simply a band aid that may not cure our problems because a country like Nigeria that is import-driven can never force the dollars down; in fact it would go the opposite route when the “decimal- removal” has been accomplished. The saddest part is that the only leverage (crude oil) we have above other countries is indexed against the dollars so I fail to see where the demand for naira is going to come from. 

Okay, I believe I have to move to another chapter of this discussion; how can we secure ourselves or better still gain from macro-economic policies that are proffered by the government. Simple; substitute your currency to an asset independent of the government; an asset that increases in value when there is force-majure – circumstances beyond human control like the hurricane, volcano, war, etc. This is the smartest move of the century; there is no asset like it. It is an age old asset that is revered by kings of the greatest empire; this asset has always been treasured and sought after by most cultures either in the form of money or as a store of value. Apart from this asset’s inflation-proof properties, it has enjoyed a huge demand for portfolio diversification in investment practices.

Gold is the asset I am talking about. How can people start investing in this asset that can be readily liquefied? This simply means that when you are interested in the raw cash, it is readily available.  It is a universal asset and it is independent of any government or any organization which makes it stand tall above any currency in the world and above any equity investment like stocks or bonds. Every seasoned investor knows that any asset that has limited supply and huge unlimited demand is an automatic money maker. The demand for gold can be thus analyzed:

Investment in Jewelry:  Gold Jewelry has held a strong attraction for human beings especially the women. When there is rising income level, economic prosperity, investment and portfolio diversification need, festive seasons, social and cultural factors, etc are the main drivers of demand for gold. The demand for gold jewelry alone constitutes a huge percentage and when demand is high, assets can easily be liquefied. 

Portfolio Diversification: There is a huge demand by prodigious investors to use gold as a hedge against inflation and other investment portfolio. It is only those that understand the power of using gold as a risk-free investment that enjoy it. 

Geopolitical Risk: There is no better platform to place your money during Geopolitical tensions, wars, terrorism and other political uncertainties like gold because it is widely considered as a “safe haven” to inert against any reactions that may surface. 

Global Banking Liquidity: Another huge demand is from the Central Bank of Most countries that mop gold from the market to raise their liquid asset reserves – consequently driving the demand of gold upwards. 

Level of interest rate: There is an increase in gold demand when the interest rate reduces as it reduces the opportunity for cost per capital. 

   

I have taken time to analyze some of the demands that is associated with gold to show you the huge potential that is available in this particular platform. This definitely means the volatility in price would most of the time increase unlike stocks that can depreciate in price so the value of money invested in gold can 90% of the time increase. In early January, I was in Dubai and the cost of gold was 650 USD per troy oz (1Kilogram is 32 troy oz); now gold goes for about 1000 USD per troy oz. You don’t need a genius to calculate your returns but the exciting thing is that POeTSolvers would be taking those that are interested an extensive 4-day practical training on how to invest in gold using the Dubai Gold Commodity Exchange (DGCX) where you can leverage to gain huge returns. You would be trading on your laptop real time and be cashing in big returns. The beauty is you do not need huge capital to start but the small amount invested can be controlling huge capital to create huge margin through speculation and arbitraging. These are the secrets we would be exposing to you. 

If you are interested in the “Invest in Gold” training which can only accommodate 25 seats for effective result, you may visit www.poetsolvers.com and click on TRAINING @ the menu section to book for a seat. The first 6 persons to completely register would be given free Apple IPOD (4G for 1st two, 2G for 2nd two and 1G for the last two) with an option to get the full recorded training in their IPOD. I may not be in Nigeria for a while so I would love to show those who are interested the secrets of trading in the DGCX platform. I believe this is an opportunity for those interested in financial freedom and extra cash flow. We are looking at 14th to 17th of April for the practical training. Wish you the best in all your endeavors……

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About Dipo Tepede

I am a Project Management coach. I specialize in making delegates pass any Project Management certification at first try. I successfully achieve this fit through practical application of the knowledge and integration of our Project Management eLearning school at www.pmtutor.org. Welcome to my world.....