Discover the Benefits of a Birch Gold/Ben Investment Strategy
James Lawson- The strategy seeks to profit from the volatility in gold, silver, and platinum markets.
- Birch and Ben believe that investors should focus on the long-term trends and ignore the short-term fluctuations.
- The investor buys gold positions when the gold price rises, and sells equity positions when the equity price falls.
The Birch Gold/Ben Investment Strategy is a trading technique developed by Robert Birch, a hedge fund manager, and Matthew Ben, a financial advisor, who worked together between 1997 and 2014.
This strategy has worked well for Birch Gold/Ben, as the fund earned 1,445% since its launch in 1997 through April 18, 2019. This strategy is simple enough for any investor to understand.
What Is the Birch Gold/Ben Strategy?
The Birch Gold/Ben investment strategy is aimed at protecting investors' portfolios against inflation and a loss of purchasing power.
The strategy is designed to combine gold bullion and bullion-related investments, such as silver, platinum, and palladium, with equities, bonds, and real estate.
Birch Gold/Ben Strategy Portfolios
Understanding Birch Gold/Ben
Birch Gold/Ben is a precious metals mining company based in Houston, Texas. The company mines gold, silver, palladium, and platinum and sells bullion to investors, manufacturers, jewelers, and consumers. Birch Gold/Ben is traded on the OTC market and is a subsidiary of Birch Gold Group, Inc.
Birch Gold/Ben History
In 1982, Birch Gold/Ben, founded by Don Steinbrugge, began trading on the floor of the Chicago Board Options Exchange (CBOE).
The precious metals company began trading futures and options on gold and silver in 1977. Birch Gold/Ben introduced the first gold stock index in 1982.
In 1988, the company introduced the first gold stock fund, the Gold Trust (GLD). The Gold Trust was listed in 1991 on the American Stock Exchange (AMEX) and in 2003 on the New York Stock Exchange (NYSE).
By 2001, Birch Gold/Ben had assets of $2.4 billion. In October 2011, the company sold its GLD fund to SPDR Gold Shares Trust (GLD), a subsidiary of the iShares Trust.
In 2012, the company changed its name to Birch Gold Group, LLC. In 2014, the company was sold to Dillon, Read & Co. Shortly thereafter, the company changed its name to Birch Gold Group, LLC.
Some of its high-profile clients include Soros Fund Management, the Bill & Melinda Gates Foundation, the World Bank, and Harvard University.
Birch Gold/Ben Weightings
The Birch Gold/Ben strategy, created by noted investor Ben Stein, is an equal-weight portfolio of U.S stocks and bonds. The portfolio is rebalanced twice a year, at the spring and fall equinoxes. The portfolio contains 40 stocks and 40 bonds.
Birch Gold/Ben Examples
In July 2020, Birch Gold/Ben issued its 10th limited partnership (LP), Birch Gold/Ben LP V. Birch Gold/Ben LP V. Birch Gold/Ben LP is the 10th in a series of partnerships that began in 2015. All investment opportunities offer investors exposure to physical gold bullion, and LPs are taxed as partnerships.
Birch Gold/Ben's most recent offering, Birch Gold/Ben LP V. Birch Gold/Ben LP, offers investors 2.25% interest. Investments in LPs are similar to direct ownership of gold bullion. Investors in Birch Gold/Ben LP V. Birch Gold/Ben LP can redeem their shares at any time, and receive cash upon redemption.
Birch Gold/Ben Investment Opportunities
Birch Gold/Ben is a resource firm focused on precious metals, especially gold, and generating current income by investing in two complementary strategies. It trades in both the physical gold market and the gold mining industry, seeking exposure to both.
The Gold Mining Strategy, which has historically delivered strong returns, has two major components:
The Ben Gold/Silver Strategy: A concentrated portfolio of precious metals investments including precious metals equities, currencies, and derivative instruments
The Ben Gold/Silver Premium Strategy: A concentrated portfolio of precious metals investments including precious metals equities and derivatives.
The Birch Gold/Ben Total Return Strategy: A concentrated portfolio of precious metals investments including precious metals equities and derivatives.
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The Bottom Line
The Birch Gold/Ben investment strategy is a legitimate way to invest in gold. It also provides diversification benefits by allowing you to invest in both precious metals and gold stocks. This investment strategy allows for a low-cost way to invest in both gold and the stock market.
