Brent Johnson: I Think Gold will Eventually go to $5000
Brent discusses his background and how his fathers love of metal detecting developed in him an interest in the commodities space. He worked with Credit Suisse until the end of 2009 but became disillusioned with how Wall Street operates. Brent then started working with a friend at Baker Avenue Asset Management and then moved into starting his own business, Santiago Capital.
Gold’s recent breakout is significant, but he thinks that we will revisit 1380 once more. When we bounce off that level, the bear market will likely be over. He recommends everyone own some gold but cautions that doesn’t mean it will pay off in the short term. People should own gold as insurance against the hubris of governments and bankers.
The amount of information that is obtainable by anyone today is almost a hindrance. It’s easy to find an echo chamber that agrees with your viewpoint, and often people think they are contrarian when they are not. You may want to act contrary to most of the opinions in the gold market as well. Buying gold right now is not a contrarian play; currently, the sentiment is terrible, and this could merely be trend-chasing.
Gold is going to be in a bull market, but you shouldn’t have all of your money in just one asset class or trade. Think for yourself and look for contrary opinions from a broad group of people as this will help you find different pathways for investing.
Time Stamp References:
0:40 – Brent discusses his early career.
1:50 – Wall Street training and Credit Suisse
5:10 – Thoughts on gold today.
6:50 – Gold to $5000 an ounce… eventually.
11:00 – Favorite authors including Jim Rogers.
16:00 – Be careful of echo chambers.
Talking Points From This Weeks Episode
• He is not convinced that gold will move up in the short to mid-term.
• Be careful of opinion echo chambers.
• Try to broaden your viewpoints.
• Avoid going all-in on one investment.
• Contrarian investing is more than just being long gold.
Brent Johnson brings over 18 years of experience in the financial markets to his position as CEO of Santiago Capital. He has been creating and managing comprehensive wealth management strategies for the personal portfolios of high-net-worth individuals and families since the late 1990s. The lack of an appropriate precious metals solution for his clients is what led him to create and launch the Santiago Gold Fund, LP in January 2012. A recognized expert in the gold community, Brent’s views have been quoted in numerous print, online, and television outlets.
In addition to managing Santiago Capital, Brent is a Managing Director at Baker Avenue Asset Management. Before joining Baker Avenue, Brent spent nine years with Credit Suisse as vice president in their private client group. Before that, he was with Donaldson, Lufkin & Jenrette (DLJ) in New York City before moving within the firm to San Francisco. He joined Credit Suisse in the fall of 2000 when the bank purchased DLJ. Earlier in his career, Brent was a financial auditor for Philip Morris Management Company in New York City. In addition to performing audits at the company’s headquarters, he worked on projects for Philip Morris subsidiaries in Germany, Hong Kong, and Richmond, Virginia.