Go Cyber or Go Gold… Lessons from Panama

Marianne Abib-Pech CEO of LeadtheFuture, Keynote Speaker and Co-Founder of Eastern Intelligence

Panama had the canal and financial services, and the world had Panama to protect its darkest secrets. But, not anymore!

Let’s not dwell on the why and how come, nor indulge in any conspiracy theories, instead, let’s put on our hard-core investor hat and extract the necessary lessons to come closer to the next unicorn to invest in!

However, before considering investment opportunities, we need to understand that secrecy is a thing of the past.

The 11.5 billion documents, leaked in a couple of hours, resulted in forty years of transactions being laid bare for everyone to see. But confidentiality didn’t die on that average Monday morning, it died the instant the world became digital. Despite the efforts of governments and their financial side-kicks, the regulators, trying to provide protection where necessary, the rise of the digital world opened up reputation and business dealings to incommensurable risks!

However, it is not all bad news. The shift in a world where everything can be falsified or destroyed, has resulted in trust and discretion returning as the most sought after investments.

So, what does this mean for investors? Well, at a very simplistic level, they are left with two very opposite approaches:

Go uber technology:

Invest in cyber security related start-ups. The hype is growing to epic proportions. Everyone tries to outcompete with one another’s game-changing, next generation, big data, intelligence-driven and other platform-based silver bullet gizmos. Some of the most promising ones being: Cybereason, Digital Shadows or my personal favorite Hacker One! Very I- Robot!

You can compliment this by riding the trendier Artificial Intelligence wave specifically applied to cyber security. As Amit Mital Symantec CTO reflected in a Forbes article last July:

‘’Only artificially intelligent defense systems would have the ability to react instantly in real time.”

Go…..Gold

Alternatively, embrace your inner contrarian and go physical gold! It is the only hard asset that cannot be falsified or over-produced. Additionally, it is both liquid and movable.

But where to find these gems?

If you like the idea of insuring against the collapse of the financial systems, then the Tocqueville Bullion Reserve (TBR) is just for you. It was specifically built to protect assets and provide liquidity under all market conditions. Investors buy into a private, yet institutional, vehicle that does not rely on financial institutions and markets. The other advantage is that TBR holds readily available physical stock of gold in private vaults around the globe.

If you are still hopeful but want to minimize your exposure to the current high volatility in the commodities markets and/or monetize some of your existing stock, then go Gold Series Fund (GSF).

Thanks to their in-house developed trading model, the GSF offers a unique way to capture financial performance in a long-term holding. The twist? Positions are backed in a similar fashion to TBR i.e. with physical stock, but this time, in the custody of a financial institution. It results in volatility that is one third lower, while performance being 50% higher than Gold.

The financial system is teetering, and digital warfare is truly soaring. Better be safe than sorry, invest in areas that benefit from financial and cyber risks. Cyber security and gold fit the bill perfectly so futuristic or contrarian what is it going to be?

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