''Go for the real gold before it's too late'' financial expert warns

New fund from Belkhayate Asset Management easily converts paper assets into physical gold

Geneva (MMD Newswire) August 24, 2011 - With gold prices going nowhere but up, many investors are grabbing on to all of the yellow metal they can acquire. But are they really getting gold? In most cases they're not, cautions gold expert, asset manager, and financial market analyst El Mostafa Belkhayate. Belkhayate, whose predictions about financial markets have been uncannily accurate for more than ten years, says that it's time to get back to "the real gold" - physical gold, as opposed to paper gold. And his company has launched a new fund to help investors do just that.

"Paper gold," says Belkhayate, "is nothing but paper pretending to be gold. Unfortunately, the majority of gold investors are holding only paper." However, more investors are starting to demand physical gold delivery, and Belkhayate Asset Management has introduced a Physical Gold Fund - Swiss Aurum Corporation, Segregated Portfolio - for what the company says is an easy, hassle-free means to convert paper assets into physical gold now, while the iron (or gold) is hot.. This should be good news for private investors and wealth and asset managers all over the world.
Belkhayate explains that the annual gold supply has not been able to meet market demand for more than a decade. World gold mine production has been stagnant, he notes, decreasing at about 2,500 metric tons a year, while market demand has been steady, rising at 4,000-plus metric tons per year for the last ten years. The missing +/- 1,500 tons-a-year deficit has only been partially covered - some of it by scrap sales but most of it by the central banks selling or leasing much of their gold reserves.
"These sales were done either directly, or through the lease of their gold to bullion banks - who sold it into the market themselves," says Belkhayate. "As a result these bullion banks are now 'short gold,' as they owe to the central banks." What makes it all more confusing is that in many instances that "leased gold" still appears on the central banks' books, as it is theoretically owed to them by the bullion banks. In fact, however, it does not exist any more as actual reserves, nor is it really available anywhere in its physical form.
Furthermore, while mining output has been decreasing - mostly because of gold mines running out of ore - the demand breakdown for gold has changed substantially in the last few years. "Investment gold" now accounts for a much larger part of the demand, compared to earlier years, where most of the gold demand was for use in jewelry. In addition, in the last couple of years, world central banks, who were historically net sellers of gold, have now become net buyers.
All of these layers of intrigue are enough to make the average investor's head spin. Fortunately cooler heads prevail at Swiss Aurum Corporation, Segregated Portfolio.
There are numerous reasons to invest in physical gold, says Belkhayate - most notably, its rarity. If it were melted down, all of the gold that has ever been extracted from mines would only fill four Olympic-sized swimming pools. Moreover, the demand has never been greater, even as gold mining production is declining; the increasing demand from countries such as India and China should drive long-term demand. "And physical gold is the most secured investment in any portfolio," adds Belkhayate.
Born in Morocco, Belkhayate has been a professional trader on commodities and Forex markets for more than twenty years. In 2006 a fund he managed, the Mansa Moussa Gold Fund, was rated Number 1 in the commodity funds category on Bloomberg. The following year the total assets of that fund reached $1.2 billion USD, with an average monthly return of 4% over four years. Over the past eleven years Belkhayate has accurately predicted and charted major financial trends such as the Internet bubble burst, oil price fluctuations, the fall of the US dollar, and, of course, the rise in gold prices. In 2004, when gold was at a mere $380 USD/ounce, Belkhayate published an innovative chart based on the gold/oil ratio, demonstrating the imminent take-off of gold.
And he's not through with his predictions. Says Belkhayate, "In the last two years, despite multiple trillions of dollars of worldwide 'stimulus packages' - which are really just more government debt - the real economy has been stagnant, to say the least. Yet since early 2009, stock markets have had a rebound. That was the second 'up' leg of the typical correction cycle, which occurs in three legs - down/rebound/down - and experts expect the markets to start their next 'down' leg as soon as this coming fall.
"But this time around," he continues, "there will be no more artificial stimulus packages available to support the markets, or the economy, and keep stock markets from going down especially hard. This will also drive gold prices up again, as gold has regained its historical (5,000-plus years) 'ultimate reserve value' status."
The bottom line is that gold will only continue to rise as financial markets fall, and the smart money is on conversion of paper assets into physical gold. Belkhayate reiterates that holding on to paper gold is useless and highly risky. That's why he stresses that asking for delivery of physical gold is the most secure, least risky route to take.
"Until now, however," says Belkhayate, "it's been difficult and costly for individual and even some institutional investors to buy and obtain delivery of physical gold in quantity." Swiss Aurum Corporation, SP set up a unique solution that addresses all of them. SAC, he adds, is 100% backed by allocated physical gold, stored in Zurich, Switzerland in the vaults of the fund's custodian bank, Clariden Leu, which is the gold arm of the Credit Suisse Group. Listed on most financial networks (Bloomberg, Reuters, Telekurs), the fund can be subscribed to through any bank.
"SAC allows its customers to ask for immediate delivery of their gold anywhere in the world," Belkhayate says. "As the gold delivery guarantee is issued by Clariden Leu (the Custodian Bank), SAC certificates are accepted by the Fund's Custody bank who may offer, subject to its own rules, a line of credit."
Fayze Bouaid, director of SAC, adds, "Thanks to our management team and our partnership with the leading Swiss bullion bank, we're able to provide our clients up to 4 metric tons of gold per day without disturbing the spot price. And customers can redeem their gold through SAC, whenever they wish to dispose of it."
Says Belkhayate, "Due to the growing volatility of the world financial markets, the gold market is really starting to catch on fire. I don't know how to put it any more clearly, but gold investors who are still lured by the false promise of paper gold are going to have a rude awakening sooner or later. It's past time for them to get back to the real deal: physical gold."