Paul Regan of Next Level Holdings Explains How to Avoid Dollar/Currency Risk by Investing In Gold
Investing in gold has long been considered a safe haven for investors who are looking to mitigate dollar risk. Gold, a tangible asset, retains its value regardless of fluctuations in the currency markets. Is it really that simple for investors? “Yes and no,” says Paul Regan, a hedge fund manager who founded Next Level Holdings LLC. “It is true that investors who purchase gold are diversifying their portfolios, which can help to protect them against currency risk. Yet, we all know that risk is never completely eliminated – unless you can be insured against it. That’s where Next Level Holdings enters the picture: we are helping people to invest in gold, earn guaranteed 24% returns, and have their principal underwritten by policies issued by top insurance companies, including Lloyds of London.”
Regan explains that changes in the exchange rate between a domestic currency and a foreign currency create risks for investors. If, for example, an investor holds assets denominated in the Euro and the exchange rate moves against them, they could experience a loss.
“One way to avoid that risk is to invest in gold, a physical asset whose supply is limited,” Regan says. “What this means for the savvy investor is that gold is less susceptible to inflation than paper currencies. When they purchase gold, they are effectively converting their dollars into gold. Their investment is no longer tied to the dollar’s value, so if the dollar depreciates, the value of the gold investment will remain relatively stable. This is why during times of currency depreciation, the value of gold often goes up.”
Regan helps investors capitalize on the potential of gold through arbitrage trading, which is when traders take advantage of price discrepancies between the same investments in different markets. They buy in one market while simultaneously selling an equivalent size in a different but related market, ultimately taking advantage of price divergences between the two.
“Gold is perfect for this because its market spans the globe, ranging from physical metals to financial products, like ETFs, that allow you to buy a digital claim to gold. This provides many opportunities for arbitrage across geography, time, and form,” says Regan. “For example, it’s possible to buy long-term contracts that enable you to purchase physical gold directly from miners at predefined discounts below the market price. If you can presell that gold to international refineries at prices at or above the market price before you actually paid for the gold, you can eliminate execution risk. You can lock in a profit before risking your capital.”
This is what Regan has perfected at Next Level Holdings, where he turns its capital over 3-4 times every 30 days to generate 9-12% returns every month. Ultimately, his team generates returns of around 80% per annum after expenses, with approximately one-third of that going to investors.
While that is good news for people who want to avoid currency risk, Regan knows that any commodity – including gold – can suffer losses in value when market conditions go south. Enter insurance policies, a unique feature offered by Next Level Holdings that is making “guaranteed returns” be exactly what they sound like: guaranteed.
Regan readily admits it took some effort to bring insurance companies on board. “They were initially skeptical, but that changed when they saw that I had a scalable, sustainable investment strategy that could be implemented in the physical commodities markets,” he remembers. “They also saw the potential: any risk of the arbitrage investment was measurable, and we could minimize it to specific levels. That grabbed their interest quickly, but I still had to go through nearly two years of forensic audits before they agreed to insure our investors’ principal and interest. I also needed to put up eight figures in counter-guarantees, which tells you how much I believe in arbitrage trading and gold.”
The result of Regan’s vision and perseverance is Next Level Holdings, whose investors are issued dedicated policies that guarantee them against loss of principal or interest and that come directly from licensed and regulated major insurance carriers, all of whom carry investment-grade ratings from AM Best, the credit rating issuer for insurance carriers.
“The investment landscape is radically different now that high returns can be guaranteed and are low risk,” Paul says. “By combining the strength of gold with the security of insurance, Next Level Holdings is helping investors to avoid currency risk. They now have options that used to be impossible. We are empowering each of our clients to make their financial future be exactly what they want it to be.”