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Nestor Castillero
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Mr. Castillero is responsible for execution of trades and meeting all governance, regulatory, and reporting requirements for Physical Gold Fund SP, as well as overall daily operations. He is also in charge of marketing the fund and client meetings on behalf of the company. Prior to Physical Gold... More
My company:
Physical Hard Assets Fund SPC
  • What If?

    "What If"…. Two words that, when put together, create a very powerful statement. How many times have you asked yourself what would have happened if you had done things differently?

    "What If" makes you consider the possibility of something totally different; it gives you a new variable of options. In a changing world like the one we live in where it's impossible to know everything that will occur in the future, asking "What If" can help you prepare for eventualities.

    The fact that an event hasn't occurred yet doesn't mean it never will. Asking "What If" when planning your investments allows you to evaluate possible scenarios that may or may not affect you.

    Gold has been used as money for more than 5,000 years. In countries such as China and India, it carries even more value for individuals. One example of this is gold given as wedding gifts to assist young families in building a solid financial base. These Eastern nations know the importance of gold as a way to preserve and protect wealth.

    A recent global trend is massive printing of currency by major Central Banks. Debt ceilings continue to be risen, governments' debt keeps increasing, and paper currency is flooding the markets. Notice that while all this is happening, Central Banks are increasing their gold reserves with China being the world's leader of gold imports.

    What if something major is coming and powerful economies like China are preparing by increasing their gold reserves? In the event a crisis occurs, gold can protect your wealth and reduce the risk of loss in your investment portfolio. When preparing for your future, always ask "What If" so you may plan accordingly and prevent failure.

    Have you asked yourself "What If"?

    Dec 05 2:25 PM | Link | Comment!
  • The Game Of Musical Chairs

    I'm certain most of you have at least once in your life played the game of musical chairs. This game consists of chairs aligned in the center of an area, and people walk, dance or run however they want around the chairs while the music is playing. Once the music stops, the objective is to sit in a chair and secure your continuance in the game. The game seems very simple, but there is a catch; there are fewer chairs than people, so in the end it turns into a fight for survival among all the players.

    I've mentioned diversification in other articles, because for me it's a key element in a well-balanced investment portfolio. In this changing world, traditional portfolios are becoming less efficient, and managers need to update their strategies in order to protect their client against future events. The fact that a catastrophe or crash hasn't taken place doesn't mean it never will. Investors trust their advisors to manage their assets and protect their wealth against such occurrences. The only way to accomplish this is to guarantee clients a chair when the music stops.

    I've been an advocate of gold, silver, and other real assets for some time. I don't believe the end of the world is going to happen tomorrow or the day after, but I'm sure that events that may sound ridiculous or crazy (monetary crisis, crashing financial markets, etc.) are definitely possible in these uncertain times. A machine giving people the ability to fly was also a crazy idea, but now we can fly every day at all times; we're even seeing flights to space as a touristic attraction these days.

    Every market is cyclical - a climax followed by a correction. Trying to time the market is a stressful, energy-draining, time-consuming endeavor that will not have positive results in the long run. Just like baseball hitters are more efficient by hitting the ball rather than trying to get a home run every single opportunity, diversification is required in each investment portfolio in order to protect investors and obtain better returns.

    Consider alternative investments. Things are always changing; whatever worked to position you where you are doesn't mean it will work to carry you forward from here. In the same way that big, profitable companies such as Coca Cola are constantly updating their strategies and never taking their market for granted, you should consider different variables and invest accordingly.

    Don't wait until the music stops to try and save yourself. Prepare now, and go get that chair!

    Aug 20 4:13 PM | Link | Comment!
  • What Is Safe?

    I remember being in Boston during 2008 for a graduate program on banking and finance. My textbooks were already purchased, and I was eager to start classes. On the first day of my financial markets class, our professor told us to stop bringing the books, since they were now obsolete, and to start watching the news. My book specifically said Fannie Mae and Freddie Mac were extremely safe, AIG was the biggest out there and was recommended to invest into, and banks like Citibank and Bank of America, among others, were too big to have any issues. Reading all of these notes while watching how they collapsed one after the other was a privilege for me; I got my mind awoken and realized that things were changing drastically. Safe wasn't safe anymore, and people were scared.

    According to the Merriam-Webster dictionary, safe means "free from harm or risk." I would presume that travelling on a train was safe until the recent Santiago de Compostela train crash. I would also have thought that having gold in a bank was safe until ABN Amro decided to stop delivery of physical gold and simply make the conversion into cash. Even having cash in a bank was considered safe until Cyprus decided to make bail in out of the bank's clients and use that money to rescue the institution. If you thought that becoming a billionaire would give you safety, just read about former Brazilian billionaire Eike Batista.

    My point is that nothing is 100% safe - there is always a risk. There are events simply out of our control that can affect us enormously. The suggested way to be safe is to mitigate that risk so in the event something bad occurs, there's a Plan B, C, D, and so on. Every risk brings an opportunity; just don't concentrate everything you have in that one and only opportunity.

    Traditional portfolios are comprised of stocks and bonds. Both assets are extremely dependable on the financial markets, but even if you have ten different bonds, they're still bonds. Having many of the same assets doesn't mean you're diversified, it just means you have the same thing with different names.

    I'm not against having stocks, bonds, hedge funds or other fixed income products. I believe it's a great decision to try to get a return higher than what your salary can provide so you can improve your standard of living. I truly believe it would be advisable to incorporate other non-correlated assets that may help to reduce risk and expand your portfolio into alternative investments. A well-balanced portfolio should not only be oriented to return, it should also be oriented to protection of wealth and reduction of risk.

    Don't wait until it's too late to take action; be prepared for any eventuality. Consider allocating a portion of your portfolio into alternatives assets such as gold so you can spread your investments and achieve true diversification.

    Aug 06 12:59 PM | Link | Comment!
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