Notes From The Field   By Simon Black

August 21, 2019   San Juan, Puerto Rico

4 Compelling Reasons To Be Thinking About Gold

From time to time it’s important to take a giant step back and take a fresh look at everything that’s going on with a big picture perspective.

The last few weeks have been nothing short of incredible… so many important things happening that have never happened before ever. Let’s take a step back together:

1) $50 Billion To “Elevate Your Consciousness”

As we discussed on Monday, WeWork filed its formal IPO paperwork in the United States last week, indicating that the company will be worth nearly $50 BILLION when it goes public.

WeWork has never turned a profit. It doesn’t expect to turn a profit. It doesn’t have a plan to turn a profit. And it claims its mission is to ‘elevate the world’s consciousness’.

WeWork owns no real estate. It has almost no assets. In fact, WeWork’s primary asset is the office space it currently leases (i.e. does not own).

And to be fair, they’re leasing a LOT of space. WeWork hopes to eventually lease 40 million square feet of office space.

But at $50 BILLION, investors are essentially paying $1,250 for each square foot of office space that WeWork is LEASING.

That’s almost as expensive as what it costs to BUY in New York City.

Talk about overpaying.

Then there are the ridiculous shenanigans of WeWork’s co-founder/CEO Adam Neumann, who has a history of unethical behavior.

Neumann charged his own company nearly $6 million for the “We” trademark earlier this year. He borrowed money from the company to buy real estate that he immediately leased back to WeWork.

And now he’s selling shares in this IPO to investors which have dramatically diminished voting rights… further cementing his power over the company.

So not only are investors dramatically overpaying for a company that has very few assets and burns cash with no end in sight, but they’re willingly giving up control to someone who has a history of enriching himself at their expense.

 2) Yikes! Interest rates

But perhaps even more insane than WeWork (if that’s even possible) is what’s happening with interest rates.

To continue reading, please go to the original article at

https://www.sovereignman.com/investing/4-compelling-reasons-to-be-thinking-about-gold-25490/