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Paper bills really aren’t worth much, but gold, silver, and physical assets are. One group can help you tell the difference.
How much is your money — that wad of paper bills in your wallet — worth, really?
This will come as a shock to most: “The paper bill in your hand costs only 6 cents to print out, and that is its value,” says Carlo Sumayao, director of the Philippine center for SRDC Worldwide, a community of traders, investors and businessmen focused on raising financial awareness, education, and mentoring.
It used to be that all paper bills, like the American dollar, were backed by an equivalent weight in gold in the national treasury. Now it’s not a requirement: the public’s trust in it and in the government issuing the money is the only thing holding its perceived value together. Therefore, Sumayao adds, since paper cash has no intrinsic value, people really need to know what to invest in — such as gold and silver and physical assets like land and real estate. (Based on current world market prices, a gram of gold is worth about P2,100; a kilo of silver is about P37,000.)
That’s been the mission of SRDC Worldwide, founded by Orange Roshan (a native of Brunei with two decades of experience in multi-disciplinary conventional businesses and in trading forex and commodities) since it began four years ago. Now it boasts of about 20,000 members worldwide with bases in five countries.
A return to ‘real’ money
At the heart of the SRDC’s campaign is “a crucial need” for people to understand money and how it is being influenced by market factors, Sumayao says. “The investment products most obviously available to you today may not always be the financially intelligent choice, primarily because of inflation and all these problems plaguing the world economy,” he adds.
“By investing in actual money — that is, physical gold and silver — we are able to convert wealth into something that has true value,” adds the head of Orange Roshan Ventures, SRDC’s authorized local partner.
SRDC helps this process by producing minted silver and gold coins available at discounted prices to their members in varying units, making it“affordable and feasible to slowly convert one’s cash assets into precious metals by making consistent conversions over time,” Sumayao adds.
Knowledge is wealth
The second method of investment SRDC Worldwide advocates is trading the spot market by using an exclusive method of technical charting analysis. SRDC traders can safely and consistently enlarge one’s capital and use part of the profit to invest in physical assets, Sumayao adds.
“We have spent years acquiring academic and professional education in our youth, but we have not sufficiently acquired financial education from our schools,” Shaf Al Shukri, head of instructors at SRDC Worldwide, points out. The organization’s best example of financial education is Roshan himself; he learned from a market maker during his early days in Japan’s largest trading bank, Nomura Securities.
The bottom line is that everyone can avoid paying a heavy price and losing their hard-earned money due to lack of awareness and ill advice, says Sumayao. Even Filipinos need to know which investments to pursue and how to maximize their results while safeguarding themselves from loss.
“Nobody cares about your money more than you do,” Sumayao adds.
“In order for your wealth to grow, you need to invest in educating yourself.” — Lolita Villa
Why invest in precious metals?
In the 1970s, gold was pegged at $35 an ounce. By the early 2000s, gold had reached $300 an ounce. If you had invested in physical metals like “Rich Dad” author Robert Kiyosaki did at this point, your investment would have grown by more than 400 percent, at about $1,600 per ounce ($49 per gram, 1 ounce is equivalent to about 28.3 grams) in 2012.
As the value of paper currencies continue towards bankruptcy thanks to unreserved paper currency printing, the value of precious metals such as gold and silver will continue to rise, says Orange Roshan Ventures’ Carlo Sumayao. He adds: “It has taken the Us dollar about 40 years to lose 95 percent of its value. How long will it take for it to lose the remaining 5 percent?”