Insights – Facebook, Amazon, Netflix, and Google….Gold
September 16, 2020
Gold Market Update
Gold prices rose in U.S. Dollars last week, and there is a strong belief in the market that U.S. Federal Reserve actions will trigger inflation, which would likely be a strong positive for gold prices.
Facebook, Amazon, Netflix, and Google shares rebounded last week after a selloff. The NASDAQ index has been volatile in recent weeks, and more volatility is expected in the runup to the U.S. election just 7 weeks away.
In Australia, the Reserve Bank held interest rates at the lowest they have ever been. Low-interest rates are also seen as a positive for gold because if bonds pay little or no interest they have a harder time competing with gold.
Below we discuss the following:
SendGold launches instant payments with UPI in India
Bridgewater increases gold holdings by 34% in the dip
Buy gold through your SMSF
Gold price this month in AUD/OZ
SendGold is pleased to announce we are LIVE in India with UPI!
While SendGold’s Indian customers have been able to buy physical gold from SendGold via our partner PayPal, UPI (Unified Payments Interface) is an important milestone as India is one of the largest purchasers of gold worldwide, and one of our key growth markets.
With UPI, SendGold’s Indian customers can now buy, gift and pay with Australian physical gold through a safe jurisdiction, instantly, without the friction and fees of other channels.
The story behind SendGold
There’s always been a different set of rules for the privileged.
I saw it first-hand working on Wall Street for one of the big guys. The GFC didn’t surprise me one bit, I could see that money was broken. But while the rest of the world suffered, they were bailed out. That sucks.
I got out of there, took an 80% pay cut, and moved to Australia in search of a better way. I thought that was crypto. I invested in it, wanting it to succeed. Unfortunately it increased the risks, not lowered them. But it got me thinking ‘what if technology could transform the most trusted asset in history?’
We turned to gold, and turned it back into money!
Owning gold gives you full control of your money. If the economy, the markets, or even we fall over, it’s still yours. But it shouldn’t just be for the privileged.
Providing digital access to real gold makes it accessible, portable and global. Gold and technology are two things that people all over the world value and understand. By putting them together, we’ve added real weight to people’s money and shifted the balance back in their favour.
Jodi Stanton, CEO, SendGold
Gold in the News
Here are a few articles trending on the subject of gold.
In Q2 2020 Bridgewater Associates increased their gold holdings by 34%. Bridgewater Associates is the world’s largest hedge fund and CEO Ray Dalio and his team have access to every possible investment on the planet, from illiquid Thai property funds to the most complex derivative strategies. Given the choice of “everything in the world” to invest in, they decided to increase their gold holdings to the second-largest position in their fund. You can see the fund’s holdings here: https://whalewisdom.com/filer/bridgewater-associates-inc#tabholdings_tab_link
Respected investment manager Louis Gave has joined the gold bandwagon. This is notable because Gave “is the furthest thing from a gold bug…in fact he’s had a dim view of the shiny metal”. Gave notes in his recent newsletter that “Gold bull markets may build up over multi-year periods as the metal speaks to the public’s imagination”. He sees some potential price weakness in the short term as overbought conditions work themselves through, but notes that “U.S. M2 (money supply) is growing at about six times nominal U.S. GDP growth or 24.5% per annum—an absolute and relative record”: https://blog.evergreengavekal.com/what-will-stop-the-gold-bull-market/
Crescat Capital released a nice list of the many reasons they own gold. These include: “Precious metals became a forgotten class among large allocators of capital in the extended expansion phase of the last business cycle”; and “Precious metals are now trading at historically depressed levels relative to money supply; overall stocks, on the other hand, are the complete opposite”. https://www.crescat.net/crescat-capital-quarterly-investor-letter-q2-2020/
Retirement Funds around the world buying gold
This week we highlight a subject rather than an article by one commenter.
That subject is how pension funds, some of the very largest global investors, are slowly coming to realize the value of gold in long-term investment portfolios.
UK-centric Professional Pensions site ran an article detailing how UK pension plans have missed a trick by not incorporating gold into their portfolios:
Building on the subject, while we’re reluctant to link to Max Keiser, he does make an important point regarding how Warren Buffet’s gold investment does clear the way, psychologically at least, for other pension funds to buy gold:
The impact of the world’s $32 trillion in pensions diverting even a small percentage into the gold market should not be understated. More than half of the $32 trillion global in pension assets is currently invested in bonds:
And on cue, the $16 B Ohio Police and Fire pension fund declared a 5% (USD $800M) investment in gold. If this trend continues (we think it will) then a whole new class of investors will be competing for gold:
SendGold Handy Hints
You can now buy gold through your Retirement Fund or Self-managed Superfund (SMSF).
We’re excited that we now have capability for our customers to invest in gold with their SMSFs using the SendGold platform. It’s great to be able to help protect superannuation and retirement investments in the same way we’ve being helping individuals to de-risk their investment portfolios in these uncertain times.
Remember, we are here to answer any questions. Just email us on email@example.com.
In the News
- What's behind the coronavirus gold rush?
August 8, 2020
- Insights – Gold gaining on the US dollar ahead of the US election
October 21, 2020
- Positioning with gold for election uncertainty
October 20, 2020