Gold Is A Better Way: And Other Wealth Building Secrets Wall Street Doesn't Want You to Know

It’s shiny, heavy, warm, glowing, and even pretty – but is gold also the best hiding place for your hard-earned cash in these volatile economic times? Should you be jumping out of stocks and bonds and building your financial survival bunker out of solid gold ingots?

That’s the recommendation of Adam Baratta, former Hollywood actor, director, screenwriter and, since 2014, co-founder of the hugely successful firm Advantage Gold. In fact, he says, gold may be the only reliable financial sanctuary there is in the turbulent markets we face today and the economic tsunami he sees heading our way.

Now, as an author, Baratta makes his case for the future safety and profits to be had from gold in his new book, “Gold Is A Better Way: And Other Wealth Building Secrets Wall Street Doesn’t Want You to Know.”

Baratta is in a great position to know what he’s talking about. He has seen Advantage Gold leap from $2 million in sales in its first year to a projected $132 million, enjoying the reputation of being America’s best-rated precious metals firm.

In the new book, Baratta points out the risk and instability of traditional holdings and makes the case that gold with significantly outperform paper assets over the next 10 -12 years.

Baratta, whose book is soon to be published by Morgan James Publishing, makes a solid case, citing “The math Wall Street doesn’t want you to know.”

For example, he writes, “If you invested $100,000 in the paper stock and bond markets in January 2000 and received the maximum possible return by reinvesting all of your dividends, and then were lucky enough to have achieved returns that matched the overall index, today that $100,000 would be worth roughly $320,000. The same $100,000 invested in gold in January 2000 is worth roughly $450,000 in gold today.”

Or, as they say, just do the math.

Baratta argues that stocks and bonds are extremely inflated and that the bubble is about to burst, as the Fed begins increasing interest rates which inevitably will cause the value of stocks and bonds to decrease.

Amazingly, he predicts a rise of gold, now trading for $1,219 per ounce, to $2,600 per ounce within three to four years, and by 2030, to $10,000 per ounce, while other forms of investment will tumble in value. Greater gains are even possible, Baratta notes, stating that $25,000 per ounce is not out of the question.

“Defensive positions like commodities, gold and cash will best shield you from the elements on the horizon,” he writes.

He is so certain of the approaching outcome that he is putting his own money, and that of his employees, where his mouth is. Advantage Gold has its pension plan in physical precious metals and Baratta said he buys more gold and silver for his own accounts monthly.

“I believe that Wall Street has sold us strategies that are in their own best interests -- not necessarily in ours,” he writes. “According to Wall Street, physical gold is for crazy people and conspiracy theorists who think the world is coming to an end. ‘Stay the course, own stocks and bonds for diversification and don’t buy gold’ are among many of the ‘lessons’ investors hear from their financial advisors on a daily basis.”

However, he notes that governments own gold – the US holds 8,000 tons roughly, followed by Germany with 3,500 tons, the IMF, Italy and France holding about 2,500 tons apiece and Russia holding 1,715 tons. No one knows exactly how much China holds, but certainly it is a significant amount.

Baratta asks, “If gold is good for major governments to own, why is gold a bad thing for you to own?”

Gold’s rarity stabilizes its value. Baratta writes that we have only mined about 188,000 tons of gold in all of mining history, or about enough to fill two Olympic-sized swimming pools.

“A big question is where will interest rates go in the next several years,” Baratta writes.  “If rates continue higher, gold will likely outperform bonds. If there is a sudden downward move in interest rates, it will likely signal that the economy is stalling. In this case, gold will likely outperform equities as investors rush to the safe haven of gold. At these levels it’s most likely ‘heads you win, tails you win,’ for the price of gold, regardless of the direction of interest rates.” As a long-term investor, Baratta believes he is far better off holding gold in these scenarios.

“The bond market’s 30-year bull run appears to be ending. The stock market is also trading at near historic all-time highs, at roughly 30 times earnings. It’s all very expensive, and if you’re in a traditional IRA or 401k, there’s little way to protect yourself against the inevitable downturns in the paper markets.”

But, he insists, there is one way – “If you want to prepare yourself to win, there is only one thing left to do...Buy gold now.”