- Global Economic Outlook
- History and Role of Gold in Portfolios Today
- Asset Allocation – Higher Allocations to Gold Justified
- Dollar Cost Average – Need to Front End Financial Insurance
- An “ETF Is No Substitute for Physical Allocated Gold in the Vault”
- Switzerland, Singapore and London are Safest Places to Store Gold
Global Debt to GDP – New GFC and Currency Reset Likely
John Butler was interviewed by Mark O’Byrne about gold and the vitally important but little covered aspects of investing in gold such as – higher allocations, how to geometrically dollar cost average, re-balancing gold and of course geographic diversification and the safest locations to own gold.
Butler believes that since the end of the Bretton Woods monetary system, there is a strong case for having higher allocations to physical gold. He warns of the risk inherent in gold ETFs due to the levels of indemnification and legal indemnifications.
“If you read the prospectuses carefully” the gold ETFs are “subject to various forms of force majeures and unforeseen circumstances” and “the gold is not even fully insured.”
“They could be susceptible to fraud” and “there may be no recourse.”
Hence the importance of physical, allocated and segregated gold “outside the banking system”.
The webinar had the ever popular ‘question and answer’ section which is always well received and saw some interesting questions from the participants. Some of which included:
Q: How should an investor approach portfolio rebalancing and gold, should it ever be sold down?
Q: I am a 65 year old retiree. I have much of my pension in stocks and small amount in physical coins (2%), should I buy the Gold ETF and if so what is a good allocation?
Q: If rates start to rise in 2016, what will gold do?
Q: What do you see as the greatest threat to the world economy over the next 5 years, systematic, market, geo political?
Q: Where is the safest place to store metal?
The webinar is a must listen for anyone who owns gold or is considering allocating funds to gold.
John Butler is now a consultant for GoldCore and advising high net worth and family offices with regard to allocating funds to physical gold and institutions with regard to offering their clients precious metals services.
Butler has worked as a global investment strategist for more than 20 years and has advised many of the world’s largest institutional investors, sovereign wealth funds and central banks. He is giving the opening address at the Precious Metals Symposium in Sydney Australia on October 26th and 27th.
He is giving keynote addresses at the Mines and Money Conference in London and at the Gulf Financial Forum in December. He is available to meet to discuss optimal strategies to allocate funds to the gold market today.
Watch Video of the Webinar here
Today’s Gold Prices: USD 1171.55 , EUR 1052.84 and GBP 760.70 per ounce.
Yesterday’s Gold Prices: USD 1166.45 , EUR 1031.30 and GBP 753.94 per ounce.
Gold in USD – 1 Week
Gold fell by an even $1.00 yesterday to close at $1166.30. Silver fell by $0.13 to close at $15.84. Euro gold rose to about €1050, platinum gained $7 to $1008.
Gold climbed for the first time in three days after the European Central Bank signaled it will likely engage in more QE and may even move to negative interest rates. Draghi’s comments are gold bullish – particularly in euro terms.
Gold in EUR – 1 Week
Markets took ECB President Mario Draghi’s comments as a signal that additional easing was coming as soon as December. That weakened the euro against the dollar and gold. Gold in euros priced rose to the highest in three months.
Gold has risen about 5 percent this month as patchy economic data lessened expectations of a U.S. rate increase any time soon. Indeed, there are increasing noises suggesting negative interest rates may be coming in the U.S. and EU.
Gold is now just 0.2% lower for the week in dollar terms and is nearly 2% higher in euro terms. Gold is on track for its best monthly performance since January, with a rise of 5.5%.
Silver’s outperforming again today and is up 1% – it has broken above its 200-day simple moving average at $15.94/oz above the $16/oz level again at $16.08/oz.