David Galland: Overseas Living & Internationalizing Wealth – 4/16/14
This week, in the final chapter of our La Estancia radio series, we talk to Casey Research Partner, David Galland. This year’s La Estancia radio series has included New York Times Best Selling Author, John Mauldin, and Legendary Speculator, Doug Casey. David discusses with our listeners different strategies towards diversification, overseas living, and his outlook on the gold market…
David contends that nobody knows what will happen with the precious metals, because the government is unpredictable. Due to the inflationary potential, David suggests having a sizable amount of one’s portfolio into something that hedges against such a possibility. This includes some physical metal spread across several jurisdictions and a portfolio of mining stocks.
Due to the current market for mining stocks, David has elected to be very, very selective with what companies he invests in. He insists on the importance of warrants and advises to be very selective in choosing companies, ensuring they are providing a full warrant with a long time stamp.
Next, David moves on to Argentina, which is currently in the middle of a highly inflationary period. We ask David how living through this crisis has shaped his ideas about a similar situation occurring in the United States. David points out that there is a big difference, because Argentina has faced many similar situations in the past and know how to deal with inflation. As an American, things keep getting cheaper and cheaper in Argentina, which provides a great quality of life for outsiders. A United States hyperinflation could have implications globally and David questions the standard American’s ability to deal with such an event.
Where else is David looking these days to park his capital? He points out the allure of crisis investing and uses Russia as a specific example. The current situation reminds David of many years ago when China was going to send a fleet into Taiwanese waters. Taiwan’s stock market dropped 40% almost overnight, and that provided a great trade.
David concludes that the mining stocks right now are definitely worth the speculation.
David Galland is currently a partner with Doug Casey and Olivier Garret in Casey Research, LLC., an international firm providing research and investment recommendations to individuals in over 150 countries. Casey Research currently publishes 11 publications on a variety of investment sectors and two web sites. In addition to his management responsibilities, David serves as the managing editor for The Casey Report, a monthly publication dedicated to identifying big trend moves and how to profit from them; he recently retired from writing a daily communique, Casey’s Daily Dispatch.