Real Estate Investor Magazine South Africa October 2013 | Page 60

SMART MOVES

BY SCOTT PICKEN

Global Wealth Index
South African’s wealth has decreased 77% a year

M

ost South A fricans don’t k now
how to understand their wealth, in
terms of Global Wealth. Therefore
we have created the Global Wealth Index to
understand the impact of cost escalation and
the rand devaluation on our global wealth.
Therefore like the CPI index and the basket of
goods, we have our own Global Wealth Index.
As our global wealth determines our freedom
to make decisions for our futures, we have
worked on the 5 most important components,
which will determine our freedom in the
future, no matter what we want to do for
our children or us. In the table below is the
Global Wealth Index basket of goods in the
three major currencies (US Dollar, Pounds,
Aus Dollar):

Basically in 1983 you need R555 989,05
global wealth to be able to have the freedom
to make whatever decisions you wanted for
you and your children. It didn’t matter where
you wanted to live; your Global Wealth
Index determines the wealth you require to
allow you the freedom of choice. On the 1st
of September 2013 this amount of wealth is
R12 818 698,88. Therefore if you take the
last 30 years the annual decline in wealth is
77% per year. Therefore unless your wealth is
growing by 77% a year in South Africa and in
rands then you are losing against the Global
Wealth Index. We believe the only way to be
able to counter this massive reduction each
year is to invest in first world assets and first
world incomes with f irst world currencies

to ensu re you ca n susta in you r globa l
wealth. Our book, Property Going Global
(w w w.propertygoingglobal.com) which is
based on Clem Sunter’s leading global scenario
planning technique and our 4 dimensional
GPS Model, will show you how you can
actually create global wealth and invest with
confidence; not just sustain it.
As you can see our Global Wealth Index
shows us what has happened in the last 30
years, but more importantly where we will be
in 30 years if we continue with the long-term
trends. This is what we as South Africans have
to plan for.

RESOURCES

IPS Invest

Globel Wealth Index - 1 September 2013
No

Index

1983

Rand

Rand Value

1993

1

A family holiday to Disney World

$715.92

R1.07

R762.60

$1 332.48

R3.07

R4088.58

$1 550.88

2

A family holiday to Val de Saire
(French Ski resort)

€356.00

R0.82

R290.52

€658.00

R3.03

R1994.28

€1121.00

3

A Private School (Churchie in Brisbane which is the same compariso ????M?M?????????)!?)
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