Category: Commentary

25
Jun
2012

Physical Gold (Via Mat, Perth Mint, Possession) and Paper Gold (Futures, Pool / Some Unallocated Accounts etc)

Our Market Update on Friday led to queries regarding the nature of "paper gold". 

The important difference between actual physical gold and paper gold is something we have addressed frequently since 2003.

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02
Nov
2011

Reuters Interview with Mark O’Byrne, Director of GoldCore

Reuters interviews Mark O’Byrne of GoldCore about the outlook for investor demand for gold, and the best way to own gold today.

You can read the interview here.

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10
Mar
2011

Videos: Gold and Silver Are Currencies of the Free

The President of the World Bank, Robert Zoellick, called for a new post Bretton-Woods currency system involving gold, in November 2010. Zoellick said that gold was worthy of consideration as a reference point for modern currencies and as an indicator to help set foreign exchange rates.

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19
Nov
2009

A Minskian roadmap to the next gold mania

Selected highlights of the latest  ‘Popular Delusions’ note from Société Générale’s Dylan Grice:

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20
May
2009

Beware of Exchange Trade Funds (ETFs) Bearing Gold

Gold Bullion Unique as No Counterparty Risk

Gold is unique among asset classes as it is the only asset class not dependent on the performance of auditors, management, corporations, financial institutions, banks, politicians and governments. Nor should physical gold be dependent on the performance of trustees, custodians and or sub custodians.  Gold does not depend on the performance and health of the wider economy and as importantly when you buy gold in its physical form there is no third party liability or credit risk. Or at least there should not be. Gold has an intrinsic value in and of itself that is not contingent on someone else’s or some entities performance or mere promise to pay. Thus, gold in its physical form is still the ultimate form of financial insurance. This is why every major central bank in the world still maintains a significant portion of their reserves in gold bullion and many, such as the Chinese, are now increasing their gold bullion reserves.

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07
May
2009

Central Banks Favouring Gold Again Especially the “Elephant in the Room” China

Gold rallied 2% following news that China’s state holdings of the metal have been quietly raised by 76% since 2003. Rumours and speculation about Chinese buying have been rife for years, but many market participants remained in denial until this irrefutable proof was given. China is not only the world’s largest mine producer of gold, but also the fifth-largest individual country holder of gold with 1,054t.

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08
Apr
2009

FT: Ten Principles for a Black Swan-Proof World

The Financial Times published a relevant and interesting article by Nassim Nicholas Taleb, a veteran trader, a distinguished professor at New York University’s Polytechnic Institute and the author of The Black Swan: The Impact of the Highly Improbable. 
1. What is fragile should break early while it is still small. Nothing should ever become too big to fail. Evolution in economic life helps those with the maximum amount of hidden risks – and hence the most fragile – become the biggest. 

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31
Mar
2009

A Critique of the Neo-liberal Agenda

Essay by Meghan Brown

“If the story of the past quarter of a century has a one-line plot summary, it is the rediscovery of market capitalism.” – Alan Greenspan, The Age of Turbulence, p.14 For the past thirty years, neo-liberal economic thinking has been the dominant orthodoxy governing policy and shaping development. Born from Adam Smith and his ideas of the ‘invisible hand’, this theory prevails in many well-connected and highly influential institutions such as the International Monetary Fund (IMF), the World Bank (WB), and the US Treasury, together known as the ‘Washington Consensus’. This essay will explore the theories behind neo-liberalism, which contend that unfettered markets provide the best arrangement for the allocation of resources and to which prominent thinkers such as Jagdish Bhagwati, Thomas Friedman and Martin Wolf subscribe.

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30
Mar
2009

Adrian Douglas: Why Own Physical Gold & Silver

Adrian Douglas of Market Force Analysis writes that in his experience, most ordinaly people have difficulty understanding why gold is the investment opportunity of a life time. Blaming the messenger, he explains it in simple terms, making a distinction between consumables and collectables:

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17
Feb
2009

Quantitative easing: Classic case of treating the symptom and not the patient

The answer to this global credit debacle is transparency. There are enormous sums of investor money waiting in the sidelines. The reason they have not been invested yet is due to a lack of transparency within the balance sheets of those institutions that constitute the global financial landscape. Make no mistake; capital needs to be deployed in order to create a return. With such uncertainty surrounding the global capital markets it is entirely normal that investors would pull back until a sense of clarity itself develops.

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