Bojan Pravica has been active in various fields of financial services for over 35 years. His impressive career includes responsibility for educating new employees and teaching seminars around the world.
As the initiator and founder of financial companies, with exclusive products in real estate, insurance, investment funds, policy funds, and special offers of precious metal products, he has set entirely new standards in the industry.
His leadership role is not limited to managing financial assets but also includes the development and implementation of innovative financial strategies. Bojan Pravica has thus designed a range of exclusive products that reflect his exceptional market knowledge and anticipation of future financial trends.
In the interview, we will explore how Bojan Pravica, with his exceptional knowledge and years of experience, has shaped the modern financial landscape personally and how his advice can benefit future investors.
Journalist: Hello, Mr. Pravica! Can you, based on your years of experience and knowledge, explain to us where and how to invest in?
Bojan Pravica: I believe it is crucial to choose the right basket of investments, with commodities being extremely important as well. This is also supported by a study from Yale University, which suggests that investing up to about 20 percent of assets in commodities and various forms of investments is wise. Looking at historical cycles, we observe several bullish cycles in the last 250 years. Specifically, there have been seven, including the current one. Currently, we are at the beginning of the seventh (and largest) cycle so far. According to analysts, it is expected to last another 15 to 20 years, as we are experiencing the last privatization of commodities worldwide, which is crucial to understanding the financial market.
The idea of returning back to a planned economy is extremely unusual. It is important to know that not all countries have privatized their deposits yet, which presents an opportunity for those who understand and want to capitalize on it.
Therefore, I suggest focusing on discovering the true value. Precious metals. You have an opportunity to invest in precious metals in physical form, through our company: Elementum.
Investing in an individual portfolio of equities through brokerage firms, which you can purchase, involves advice from brokers. In addition, wealth advisors can show you through mutual funds, how you can buy directly or indirectly invest in mutual funds through policy funds, by yourself. This also makes sense, as it allows you to invest part of your assets in this way as well. Investing in commodities is, of course, associated with risks, which is widely known, but it also brings opportunities, as all investors are aware (or at least should be) that we can never completely avoid risks.
The most effective investment strategy out there, has proven to be the trisection strategy, which is about 1600 years old. The strategy follows one key principle, which states that we should not invest everything in a single investment. It recommends diversification.
Even the ancient Jews advised diversifying investments into real estate, gold, silver, and so forth. Today, I believe it’s the right time to diversify into precious metals as well, specifically physical precious metals, as banks are facing challenges due to negative interest rates.
When you have guaranteed interest rates at the bank, you’re practically assuming that inflation will be lower than interest rates. If inflation is higher than interest rates, you realize that you’re ultimately at a loss. Proper investment in commodities is beneficial for wealth accumulation, investment optimization, and asset protection. I believe that emphasis on protection is extremely important, especially considering that central banks around the world, although no longer tied to the gold standard, still use gold as a reserve asset. They say it ensures the stability of our system. However, everyone knows that paper is paper, and gold is gold.
Journalist: So can we expect the beginning of higher inflation in the coming years?
Bojan Pravica: The greatest advantage of diversifying a portfolio into commodities, is evident during periods of peak commodity consumption. Although we are currently experiencing a recession, both in America and in Slovenia, or in Europe, we must acknowledge one fact: Asia continues to grow, countries are constantly developing, and the global economy as a whole remains positive. All of this would not be possible without commodities. High inflation is not here yet, but that doesn’t mean it won’t happen. In the next 3 years, we expect the beginning of higher inflation, which will rapidly strengthen at the onset of a recession. So, from what has been said, we can assert that we are at the very beginning of a recession.
Throughout history, we have experienced several such cycles. It’s noticeable that the rush into precious metals is increasing, especially in Germany, Switzerland, and Austria. In Slovenia, we are glad to share information that allows you to recognize that this is a very thoughtful investment. However, it’s important to emphasize that precious metals originate from the earth. For this reason, today, large companies engaged in production are facing the challenge of constantly falling reserves. This is not only true for oil. Although we know that oil is available for about another 40 years, the supply of gold is estimated to last only 16 years and silver 13 years. So, there’s even less of precious metals than oil. Much less. This fact is important to consider, as it makes the matter extremely intriguing.
By investing in precious metals through Elementum, you have the opportunity to get to know various companies that are not yet in production, but are about to start. In my estimation, it’s not all just about risks, but also about opportunities. Security is one of the most important perspectives when it comes to precious metals, especially when observing the imbalance between supply and demand. In recent years, demand has practically exceeded supply, especially for gold and silver. We all know that there’s no competition in this realm. This means that nobody can claim to be better, because if you have 18-karat gold, you have 18-karat gold. This is common knowledge, so there’s no competition in the realm of precious metals.
It’s not like the rivalry between Mercedes and BMW regarding who made the better car. There’s no such risk with commodities. The global price is the same for them everywhere. In other words, the price is the same regardless of the countries where they are used. This is one of the more interesting facts, to me personally, in commodity investments.
David Morgan, a widely recognized analyst in the precious metals industry, who advises hedge funds, mining companies, vaults, and precious metals traders, says: "Gold will protect your wealth, silver will make you rich."
The past is something many would like to change, but it’s not possible. When it comes to the future, it’s difficult to determine whether the decisions we make today, are right or not. As a recommendation, I have advocated for investing in the Slovenian economy since 1992. As you are well aware, everything was undervalued compared to today’s situation, so I believe that this sector has the same potential as Slovenia did in 1992.
I strongly recommend educating yourself, listening, and gathering information in the field of investing. Get informed through excellent books on this topic, offered by the Elementum company, as we have brought them to the Slovenian market for this purpose alone. Knowledge is something that no one can take away from you. Nor can they take away what you will create from it.
And so, we come to the end with yet another valuable insight into the world of investments.
- As emphasized by Bojan Pravica, it is crucial to choose the right basket of investments, with investing in commodities, like precious metals, playing an especially significant role.
- The trisection strategy he proposed, advocates for diversification of investments, as it has proven successful throughout history, especially during fluctuations in financial markets.
He pointed out that investing in commodities is particularly intriguing at the moment, as we are experiencing the beginning of the seventh and largest cycle of commodity privatization worldwide. Bojan Pravica also highlighted the importance of understanding the discrepancies between supply and demand, as well as the fact that demand for precious metals is constantly increasing worldwide.
His recommendation for all investors is to educate themselves, gather information, and keep track of developments in financial markets. Knowledge and information are crucial factors that can help you make the right investment decisions. He also emphasized the importance of following global trends and understanding that no currency is eternal. He advises investors to keep an open mind, explore new opportunities, and follow proven investment strategies. Good luck!