Mark Pey

March 24, 2020

In this two-part post, we will look at 3 things:

  1. How gold performed in the 2008 GFC
  2. Why the Covid-19 financial crisis is different
  3. How financial assets, including gold, might be expected to perform as the current crisis plays out.
We discuss the first two points in this post (Part 1).

Gold in the 2008 Crisis

The chart above shows the price of gold during and after the 2008 GFC. Of note is the initial reaction in 2008: gold declined. This was because gold is an extremely liquid asset with broad global participation and very deep markets. Investors liquidated gold in order to shore up losses elsewhere on their balance sheets and to avoid margin calls.

Once the immediate liquidity needs were offset, investors sought high-quality assets to invest in. Title to Physical Gold fit the bill because it is the safest investment asset there is: its value does not depend in any way on the performance of a counterparty. With doubts still lingering about the solvency and performance of counterparties of all kinds, including banks, funds, corporations, and even sovereign governments, investors sought out history’s best safe haven.

If we compare gold performance after the 2008 pre-crisis low to today’s gold bull run (so far) then we might expect that the current run still has a good ways to go:

But the Covid-19 financial crisis is different

The 2008 crisis started as a demand crisis as the solvency of global banks came into question. This made for an expensive but relatively straightforward fix, since the U.S. Federal Reserve Bank (and the other central banks) could inject money directly into banks.

But the Covid-19 crisis is manifesting first as a supply side crisis, as supply chains and companies shut down. So it is both the banks and their customers who require a bailout. And that supply shock is now spilling over to be a demand shock too.

And while the U.S. Federal Reserve is moving swiftly to support the financial assets of companies (through new overnight money market support and direct corporate bond purchases) they cannot support companies (and their employees) directly. That job is left to governments, who are now preparing very large fiscal stimulus and even direct payment packages.

In Part 2 we will comment on how financial assets including gold might be expected to perform as the current crisis plays out. Keep Calm and Carry On (Buying Gold) amid Covid-19 Jodi Stanton recognised as a finalist at the Women Leading Tech Awards Keeping our Clients Informed About Gold

Download our new app now and BUY 100% title to GOLD in minutes


Mark Pey

March 24, 2020

In this two-part post, we will look at 3 things:

  1. How gold performed in the 2008 GFC
  2. Why the Covid-19 financial crisis is different
  3. How financial assets, including gold, might be expected to perform as the current crisis plays out.
We discuss the first two points in this post (Part 1).

Gold in the 2008 Crisis

The chart above shows the price of gold during and after the 2008 GFC. Of note is the initial reaction in 2008: gold declined. This was because gold is an extremely liquid asset with broad global participation and very deep markets. Investors liquidated gold in order to shore up losses elsewhere on their balance sheets and to avoid margin calls.

Once the immediate liquidity needs were offset, investors sought high-quality assets to invest in. Title to Physical Gold fit the bill because it is the safest investment asset there is: its value does not depend in any way on the performance of a counterparty. With doubts still lingering about the solvency and performance of counterparties of all kinds, including banks, funds, corporations, and even sovereign governments, investors sought out history’s best safe haven.

If we compare gold performance after the 2008 pre-crisis low to today’s gold bull run (so far) then we might expect that the current run still has a good ways to go:

But the Covid-19 financial crisis is different

The 2008 crisis started as a demand crisis as the solvency of global banks came into question. This made for an expensive but relatively straightforward fix, since the U.S. Federal Reserve Bank (and the other central banks) could inject money directly into banks.

But the Covid-19 crisis is manifesting first as a supply side crisis, as supply chains and companies shut down. So it is both the banks and their customers who require a bailout. And that supply shock is now spilling over to be a demand shock too.

And while the U.S. Federal Reserve is moving swiftly to support the financial assets of companies (through new overnight money market support and direct corporate bond purchases) they cannot support companies (and their employees) directly. That job is left to governments, who are now preparing very large fiscal stimulus and even direct payment packages.

In Part 2 we will comment on how financial assets including gold might be expected to perform as the current crisis plays out. Keep Calm and Carry On (Buying Gold) amid Covid-19 Jodi Stanton recognised as a finalist at the Women Leading Tech Awards Keeping our Clients Informed About Gold

Download our new app now and BUY 100% title to GOLD in minutes


Mark Pey

March 17, 2020

There is still much we do not know about the current Covid-19 situation and the economic impact it will have. But we do know that worldwide stock, bond, and currency markets are already in significant turmoil, with short-term bonds issued by the U.S. Government trading at negative interest rates this morning for the very first time in history. We think it’s useful in times like these to focus on what we do know, rather than let the emotions of uncertainty and fear guide our financial decisions.

The Four Faces of Gold

As discussed in our 2020 Gold Outlook, we know that gold plays multiple roles in an investment portfolio and as a financial asset. First of all gold of course is an investment. And as an investment that competes and compares to other investments like company shares it is faring well. In a general slowdown company earnings will suffer, but gold has no such cash flow requirements to meet. Secondly gold is a currency, with a difference. Gold is the only currency that has no counterparty, that does not rely on the performance of an issuing government or bank in order to have value. Thirdly, at SendGold we think of gold as a bank account alternative. For the first time, if you invest your money with the U.S. Government you will receive no interest whatsoever, and you will not even receive all of your principal back at maturity. That economic reality will make its way through to banks and bank accounts. This means that gold is more competitive than ever as a bank account alternative. Fourthly, gold is an insurance policy. It is widely used as a safe haven in uncertain times. No government currency, bond, share, bank, or investment vehicle has survived every single calamity in history. Gold has.

Four Reasons: One Answer

These four aspects of gold mean that practically everyone has a reason to own it, whether you are a saver, investor, or someone wanting simply to protect your wealth in dangerous times. At SendGold our mission has been to create the safest, most secure, simplest, most accessible, and most liquid way to own gold. So whether you’re a casual saver, a savvy investor, or just seeking a safe haven in the storm: think hard about whether gold has a place in your portfolio at this time. You can also take a look at our 2020 gold outlook. 2020 Gold Outlook Download our new app now and BUY 100% title to GOLD in minutes


Mark Pey

March 24, 2020

In this two-part post, we will look at 3 things:

  1. How gold performed in the 2008 GFC
  2. Why the Covid-19 financial crisis is different
  3. How financial assets, including gold, might be expected to perform as the current crisis plays out.
We discuss the first two points in this post (Part 1).

Gold in the 2008 Crisis

The chart above shows the price of gold during and after the 2008 GFC. Of note is the initial reaction in 2008: gold declined. This was because gold is an extremely liquid asset with broad global participation and very deep markets. Investors liquidated gold in order to shore up losses elsewhere on their balance sheets and to avoid margin calls.

Once the immediate liquidity needs were offset, investors sought high-quality assets to invest in. Title to Physical Gold fit the bill because it is the safest investment asset there is: its value does not depend in any way on the performance of a counterparty. With doubts still lingering about the solvency and performance of counterparties of all kinds, including banks, funds, corporations, and even sovereign governments, investors sought out history’s best safe haven.

If we compare gold performance after the 2008 pre-crisis low to today’s gold bull run (so far) then we might expect that the current run still has a good ways to go:

But the Covid-19 financial crisis is different

The 2008 crisis started as a demand crisis as the solvency of global banks came into question. This made for an expensive but relatively straightforward fix, since the U.S. Federal Reserve Bank (and the other central banks) could inject money directly into banks.

But the Covid-19 crisis is manifesting first as a supply side crisis, as supply chains and companies shut down. So it is both the banks and their customers who require a bailout. And that supply shock is now spilling over to be a demand shock too.

And while the U.S. Federal Reserve is moving swiftly to support the financial assets of companies (through new overnight money market support and direct corporate bond purchases) they cannot support companies (and their employees) directly. That job is left to governments, who are now preparing very large fiscal stimulus and even direct payment packages.

In Part 2 we will comment on how financial assets including gold might be expected to perform as the current crisis plays out. Keep Calm and Carry On (Buying Gold) amid Covid-19 Jodi Stanton recognised as a finalist at the Women Leading Tech Awards Keeping our Clients Informed About Gold

Download our new app now and BUY 100% title to GOLD in minutes


Mark Pey

March 17, 2020

There is still much we do not know about the current Covid-19 situation and the economic impact it will have. But we do know that worldwide stock, bond, and currency markets are already in significant turmoil, with short-term bonds issued by the U.S. Government trading at negative interest rates this morning for the very first time in history. We think it’s useful in times like these to focus on what we do know, rather than let the emotions of uncertainty and fear guide our financial decisions.

The Four Faces of Gold

As discussed in our 2020 Gold Outlook, we know that gold plays multiple roles in an investment portfolio and as a financial asset. First of all gold of course is an investment. And as an investment that competes and compares to other investments like company shares it is faring well. In a general slowdown company earnings will suffer, but gold has no such cash flow requirements to meet. Secondly gold is a currency, with a difference. Gold is the only currency that has no counterparty, that does not rely on the performance of an issuing government or bank in order to have value. Thirdly, at SendGold we think of gold as a bank account alternative. For the first time, if you invest your money with the U.S. Government you will receive no interest whatsoever, and you will not even receive all of your principal back at maturity. That economic reality will make its way through to banks and bank accounts. This means that gold is more competitive than ever as a bank account alternative. Fourthly, gold is an insurance policy. It is widely used as a safe haven in uncertain times. No government currency, bond, share, bank, or investment vehicle has survived every single calamity in history. Gold has.

Four Reasons: One Answer

These four aspects of gold mean that practically everyone has a reason to own it, whether you are a saver, investor, or someone wanting simply to protect your wealth in dangerous times. At SendGold our mission has been to create the safest, most secure, simplest, most accessible, and most liquid way to own gold. So whether you’re a casual saver, a savvy investor, or just seeking a safe haven in the storm: think hard about whether gold has a place in your portfolio at this time. You can also take a look at our 2020 gold outlook. 2020 Gold Outlook Download our new app now and BUY 100% title to GOLD in minutes


Mark Pey

February 14, 2020

We at SendGold believe that one of our jobs is to help our customers stay informed about the precious metals markets so they can make better investment decisions. We do that by trying to separate gold market fact from fiction.

Part of this includes separating gold “conspiracy theories” from “conspiracy facts”.

Gold in The Ocean

One conspiracy theory for example says that there is a practically unlimited supply of gold that could be mined from seawater.

But it’s fairly simple to fact check this: according to New Scientist the amount of gold that exists in 100 million tons of seawater is 1 gram:  MIT Scientists: Gold in Seawater.

Gold In The Markets

Another prominent conspiracy theory that has circulated for years about gold is that its price is manipulated by the big banks (the so-called “bullion banks”).

Today we can report that this has now moved from the realm of “conspiracy theory” to that of “conspiracy fact”.

And no, it’s not the careful analysis by the team at SendGold that says so, it is the U.S. Department of Justice (DOJ).

Justice Is Served

Last Fall the DOJ handed down an indictment to J.P. Morgan bank. In it they stated that J.P. Morgan’s precious metals trading operation, one of the largest in the business, was (to quote) “a criminal enterprise” that “had manipulated the precious metals markets for at least a decade”.

U.S. DOJ Indictments

Most interestingly the DOJ used The RICO Act, which is normally only used for big drug cartels and the Mafia, in the indictment.

What This Could Mean

It’s widely thought that banks want to suppress the price of gold since it represents competition for all of their paper-based offerings: currencies, bank accounts, shares, and bonds.

Curbing price manipulation will mean that gold prices will better reflect actual market conditions. Supply (which is low) and demand (which is high) would be allowed to seek a more realistic equilibrium.

And the DOJ enforcement action against J.P. Morgan has reportedly sent the Compliance Departments of the other bullion banks (HSBC and others) to their own gold trading operations to make sure they are complying with the law.

Why Now?

We can speculate, but the DOJ reflects the will of the U.S. Government. President Trump wants the dollar lower (a higher gold price would help achieve this), and a few weeks ago nominated well-known “gold standard” advocate Judy Shelton to the U.S. Federal Reserve Board.

And the Fed itself has been vigorously seeking higher inflation. A higher gold price would also help achieve this.

Is Gold a Bond?

One respected observer, commenting on gold in light of these enforcement actions, said that “gold is a high-yield bond of infinite duration and limited issuance”.

We agree, and are working to make SendGold the fastest, easiest, and most liquid way to own it.

Our 2020 Gold Outlook

Download our new App now and BUY 100% title to GOLD in minutes.

  •  


Mark Pey

March 24, 2020

In this two-part post, we will look at 3 things:

  1. How gold performed in the 2008 GFC
  2. Why the Covid-19 financial crisis is different
  3. How financial assets, including gold, might be expected to perform as the current crisis plays out.
We discuss the first two points in this post (Part 1).

Gold in the 2008 Crisis

The chart above shows the price of gold during and after the 2008 GFC. Of note is the initial reaction in 2008: gold declined. This was because gold is an extremely liquid asset with broad global participation and very deep markets. Investors liquidated gold in order to shore up losses elsewhere on their balance sheets and to avoid margin calls.

Once the immediate liquidity needs were offset, investors sought high-quality assets to invest in. Title to Physical Gold fit the bill because it is the safest investment asset there is: its value does not depend in any way on the performance of a counterparty. With doubts still lingering about the solvency and performance of counterparties of all kinds, including banks, funds, corporations, and even sovereign governments, investors sought out history’s best safe haven.

If we compare gold performance after the 2008 pre-crisis low to today’s gold bull run (so far) then we might expect that the current run still has a good ways to go:

But the Covid-19 financial crisis is different

The 2008 crisis started as a demand crisis as the solvency of global banks came into question. This made for an expensive but relatively straightforward fix, since the U.S. Federal Reserve Bank (and the other central banks) could inject money directly into banks.

But the Covid-19 crisis is manifesting first as a supply side crisis, as supply chains and companies shut down. So it is both the banks and their customers who require a bailout. And that supply shock is now spilling over to be a demand shock too.

And while the U.S. Federal Reserve is moving swiftly to support the financial assets of companies (through new overnight money market support and direct corporate bond purchases) they cannot support companies (and their employees) directly. That job is left to governments, who are now preparing very large fiscal stimulus and even direct payment packages.

In Part 2 we will comment on how financial assets including gold might be expected to perform as the current crisis plays out. Keep Calm and Carry On (Buying Gold) amid Covid-19 Jodi Stanton recognised as a finalist at the Women Leading Tech Awards Keeping our Clients Informed About Gold

Download our new app now and BUY 100% title to GOLD in minutes


Mark Pey

March 17, 2020

There is still much we do not know about the current Covid-19 situation and the economic impact it will have. But we do know that worldwide stock, bond, and currency markets are already in significant turmoil, with short-term bonds issued by the U.S. Government trading at negative interest rates this morning for the very first time in history. We think it’s useful in times like these to focus on what we do know, rather than let the emotions of uncertainty and fear guide our financial decisions.

The Four Faces of Gold

As discussed in our 2020 Gold Outlook, we know that gold plays multiple roles in an investment portfolio and as a financial asset. First of all gold of course is an investment. And as an investment that competes and compares to other investments like company shares it is faring well. In a general slowdown company earnings will suffer, but gold has no such cash flow requirements to meet. Secondly gold is a currency, with a difference. Gold is the only currency that has no counterparty, that does not rely on the performance of an issuing government or bank in order to have value. Thirdly, at SendGold we think of gold as a bank account alternative. For the first time, if you invest your money with the U.S. Government you will receive no interest whatsoever, and you will not even receive all of your principal back at maturity. That economic reality will make its way through to banks and bank accounts. This means that gold is more competitive than ever as a bank account alternative. Fourthly, gold is an insurance policy. It is widely used as a safe haven in uncertain times. No government currency, bond, share, bank, or investment vehicle has survived every single calamity in history. Gold has.

Four Reasons: One Answer

These four aspects of gold mean that practically everyone has a reason to own it, whether you are a saver, investor, or someone wanting simply to protect your wealth in dangerous times. At SendGold our mission has been to create the safest, most secure, simplest, most accessible, and most liquid way to own gold. So whether you’re a casual saver, a savvy investor, or just seeking a safe haven in the storm: think hard about whether gold has a place in your portfolio at this time. You can also take a look at our 2020 gold outlook. 2020 Gold Outlook Download our new app now and BUY 100% title to GOLD in minutes


Mark Pey

February 14, 2020

We at SendGold believe that one of our jobs is to help our customers stay informed about the precious metals markets so they can make better investment decisions. We do that by trying to separate gold market fact from fiction.

Part of this includes separating gold “conspiracy theories” from “conspiracy facts”.

Gold in The Ocean

One conspiracy theory for example says that there is a practically unlimited supply of gold that could be mined from seawater.

But it’s fairly simple to fact check this: according to New Scientist the amount of gold that exists in 100 million tons of seawater is 1 gram:  MIT Scientists: Gold in Seawater.

Gold In The Markets

Another prominent conspiracy theory that has circulated for years about gold is that its price is manipulated by the big banks (the so-called “bullion banks”).

Today we can report that this has now moved from the realm of “conspiracy theory” to that of “conspiracy fact”.

And no, it’s not the careful analysis by the team at SendGold that says so, it is the U.S. Department of Justice (DOJ).

Justice Is Served

Last Fall the DOJ handed down an indictment to J.P. Morgan bank. In it they stated that J.P. Morgan’s precious metals trading operation, one of the largest in the business, was (to quote) “a criminal enterprise” that “had manipulated the precious metals markets for at least a decade”.

U.S. DOJ Indictments

Most interestingly the DOJ used The RICO Act, which is normally only used for big drug cartels and the Mafia, in the indictment.

What This Could Mean

It’s widely thought that banks want to suppress the price of gold since it represents competition for all of their paper-based offerings: currencies, bank accounts, shares, and bonds.

Curbing price manipulation will mean that gold prices will better reflect actual market conditions. Supply (which is low) and demand (which is high) would be allowed to seek a more realistic equilibrium.

And the DOJ enforcement action against J.P. Morgan has reportedly sent the Compliance Departments of the other bullion banks (HSBC and others) to their own gold trading operations to make sure they are complying with the law.

Why Now?

We can speculate, but the DOJ reflects the will of the U.S. Government. President Trump wants the dollar lower (a higher gold price would help achieve this), and a few weeks ago nominated well-known “gold standard” advocate Judy Shelton to the U.S. Federal Reserve Board.

And the Fed itself has been vigorously seeking higher inflation. A higher gold price would also help achieve this.

Is Gold a Bond?

One respected observer, commenting on gold in light of these enforcement actions, said that “gold is a high-yield bond of infinite duration and limited issuance”.

We agree, and are working to make SendGold the fastest, easiest, and most liquid way to own it.

Our 2020 Gold Outlook

Download our new App now and BUY 100% title to GOLD in minutes.

  •  


SendGold

February 13, 2020

Another year, another Valentine’s Day around the corner. While this is an exciting occasion for many, there are plenty who dread cheesy romance - especially if you’re out of thoughtful and meaningful gift ideas, with the holiday just a few days away.

If you find traditional romantic gifts a little overdone, we’ve got a few ideas that will help you nail a gift that’s not just exciting but entirely out of the ordinary too.

Some of these are also excellent if you’ve decided to celebrate yourself this Valentine’s Day - it’s a great opportunity to honour a lifelong commitment to the one person you can truly count on: Yourself. 

Now of course many SendGold customers have already send the gift of gold this year - the perfect last minute gift - with their custom message and unique virtual gift card. But if you still need other ideas, here is a list we've come up with:

An Amazon gift card

Valentine’s gift-giving can be stressful because no matter how well you know someone, there may be certain things they don’t share with you - like their secret obsession with miniature Disney figurines, for instance.

Regardless of what they’re not telling you, Amazon gift cards are the perfect Valentine’s Day gift because you’re basically just sponsoring a shopping spree on one of the biggest e-commerce marketplaces on the internet. No biggie. 

A smart home assistant

Smart homes are all the rage these days and if you’re looking for a gift that will add real value to your partner’s (or your) life, a smart home assistant is a surefire choice.

Not only can these order you an Uber, place your go-to order on the Domino’s app, and wake you up on time, but soon, you will be able to have entire conversations with sophisticated assistants like Alexa.

The best part about buying one of these devices is that they’re available at different price points and come with incredible features - did you know that they can even double as powerful Bluetooth speakers?

Digital gold

They say diamonds are forever but few naturally-occurring commodities like gold have retained value over thousands of years and continue to be highly relevant, high-value investments.

If you want to be more creative than simply gifting your partner a gold chain or any type of gold jewellery, digital gold is a great way to make an investment on behalf of your loved one this Valentine’s Day - it doesn’t get any more non-romantic, yet deeply meaningful, than that!

Digital gold also happens to be a great gift to give yourself - one that will bail you out on a rainy day, especially given that gold only continues to become more scarce and is increasing in value.

On our app, SendGold, you can not just buy and wrap up your gift in exciting Valentine’s Day-inspired gift wrap, but you can also sell your gold just as instantly as you buy it!

A weighted blanket

Another extremely popular (and non-romantic) gift idea is the weighted blanket that has set the internet ablaze with its proven benefits for anxiety and sleep.

Basically, these fluffy duvets, built with innovative cooling technology, are weighted, which means that when you cover yourself in them, there’s a relaxing pressure placed wherever your body is covered.

Proven to improve sleep, these blankets can be bought at different weights for people of different ages, tailoring the weight of the blanket with the bodyweight of the person it’s bought for.

Blue-light-blocking glasses

If you or your partner are all about the latest tech goodies up for grabs, blue-light-blocking glasses are a high-tech way to commemorate one of the most romantic days of the year.

These are perfect for people who spend all day in front of a computer or peering at their smartphones (basically, all of us). The glasses filter harmful blue light that disrupts the body’s Circadian Rhythm, which ultimately throws your sleep cycle off-balance.

Celebrate Valentine’s day with fun gift ideas that are meaningful and non-romantic

Valentine’s Day doesn’t have to be celebrated the way society demands you to. On the 14th of February, gift your special someone something that’s not a framed photo, a spa treatment or jewellery and actually make them feel special with something that’s a little different.

If it’s just you this Valentine’s Day, our gift ideas are still amazing - you just get to enjoy all the benefits yourself. Head to SendGold to begin your Valentine’s Day shopping - gold is a gift that keeps giving. 

 

Download our new App now and BUY 100% title to GOLD in minutes.

  •  

 


Mark Pey

March 24, 2020

In this two-part post, we will look at 3 things:

  1. How gold performed in the 2008 GFC
  2. Why the Covid-19 financial crisis is different
  3. How financial assets, including gold, might be expected to perform as the current crisis plays out.
We discuss the first two points in this post (Part 1).

Gold in the 2008 Crisis

The chart above shows the price of gold during and after the 2008 GFC. Of note is the initial reaction in 2008: gold declined. This was because gold is an extremely liquid asset with broad global participation and very deep markets. Investors liquidated gold in order to shore up losses elsewhere on their balance sheets and to avoid margin calls.

Once the immediate liquidity needs were offset, investors sought high-quality assets to invest in. Title to Physical Gold fit the bill because it is the safest investment asset there is: its value does not depend in any way on the performance of a counterparty. With doubts still lingering about the solvency and performance of counterparties of all kinds, including banks, funds, corporations, and even sovereign governments, investors sought out history’s best safe haven.

If we compare gold performance after the 2008 pre-crisis low to today’s gold bull run (so far) then we might expect that the current run still has a good ways to go:

But the Covid-19 financial crisis is different

The 2008 crisis started as a demand crisis as the solvency of global banks came into question. This made for an expensive but relatively straightforward fix, since the U.S. Federal Reserve Bank (and the other central banks) could inject money directly into banks.

But the Covid-19 crisis is manifesting first as a supply side crisis, as supply chains and companies shut down. So it is both the banks and their customers who require a bailout. And that supply shock is now spilling over to be a demand shock too.

And while the U.S. Federal Reserve is moving swiftly to support the financial assets of companies (through new overnight money market support and direct corporate bond purchases) they cannot support companies (and their employees) directly. That job is left to governments, who are now preparing very large fiscal stimulus and even direct payment packages.

In Part 2 we will comment on how financial assets including gold might be expected to perform as the current crisis plays out. Keep Calm and Carry On (Buying Gold) amid Covid-19 Jodi Stanton recognised as a finalist at the Women Leading Tech Awards Keeping our Clients Informed About Gold

Download our new app now and BUY 100% title to GOLD in minutes


Mark Pey

March 17, 2020

There is still much we do not know about the current Covid-19 situation and the economic impact it will have. But we do know that worldwide stock, bond, and currency markets are already in significant turmoil, with short-term bonds issued by the U.S. Government trading at negative interest rates this morning for the very first time in history. We think it’s useful in times like these to focus on what we do know, rather than let the emotions of uncertainty and fear guide our financial decisions.

The Four Faces of Gold

As discussed in our 2020 Gold Outlook, we know that gold plays multiple roles in an investment portfolio and as a financial asset. First of all gold of course is an investment. And as an investment that competes and compares to other investments like company shares it is faring well. In a general slowdown company earnings will suffer, but gold has no such cash flow requirements to meet. Secondly gold is a currency, with a difference. Gold is the only currency that has no counterparty, that does not rely on the performance of an issuing government or bank in order to have value. Thirdly, at SendGold we think of gold as a bank account alternative. For the first time, if you invest your money with the U.S. Government you will receive no interest whatsoever, and you will not even receive all of your principal back at maturity. That economic reality will make its way through to banks and bank accounts. This means that gold is more competitive than ever as a bank account alternative. Fourthly, gold is an insurance policy. It is widely used as a safe haven in uncertain times. No government currency, bond, share, bank, or investment vehicle has survived every single calamity in history. Gold has.

Four Reasons: One Answer

These four aspects of gold mean that practically everyone has a reason to own it, whether you are a saver, investor, or someone wanting simply to protect your wealth in dangerous times. At SendGold our mission has been to create the safest, most secure, simplest, most accessible, and most liquid way to own gold. So whether you’re a casual saver, a savvy investor, or just seeking a safe haven in the storm: think hard about whether gold has a place in your portfolio at this time. You can also take a look at our 2020 gold outlook. 2020 Gold Outlook Download our new app now and BUY 100% title to GOLD in minutes


Mark Pey

February 14, 2020

We at SendGold believe that one of our jobs is to help our customers stay informed about the precious metals markets so they can make better investment decisions. We do that by trying to separate gold market fact from fiction.

Part of this includes separating gold “conspiracy theories” from “conspiracy facts”.

Gold in The Ocean

One conspiracy theory for example says that there is a practically unlimited supply of gold that could be mined from seawater.

But it’s fairly simple to fact check this: according to New Scientist the amount of gold that exists in 100 million tons of seawater is 1 gram:  MIT Scientists: Gold in Seawater.

Gold In The Markets

Another prominent conspiracy theory that has circulated for years about gold is that its price is manipulated by the big banks (the so-called “bullion banks”).

Today we can report that this has now moved from the realm of “conspiracy theory” to that of “conspiracy fact”.

And no, it’s not the careful analysis by the team at SendGold that says so, it is the U.S. Department of Justice (DOJ).

Justice Is Served

Last Fall the DOJ handed down an indictment to J.P. Morgan bank. In it they stated that J.P. Morgan’s precious metals trading operation, one of the largest in the business, was (to quote) “a criminal enterprise” that “had manipulated the precious metals markets for at least a decade”.

U.S. DOJ Indictments

Most interestingly the DOJ used The RICO Act, which is normally only used for big drug cartels and the Mafia, in the indictment.

What This Could Mean

It’s widely thought that banks want to suppress the price of gold since it represents competition for all of their paper-based offerings: currencies, bank accounts, shares, and bonds.

Curbing price manipulation will mean that gold prices will better reflect actual market conditions. Supply (which is low) and demand (which is high) would be allowed to seek a more realistic equilibrium.

And the DOJ enforcement action against J.P. Morgan has reportedly sent the Compliance Departments of the other bullion banks (HSBC and others) to their own gold trading operations to make sure they are complying with the law.

Why Now?

We can speculate, but the DOJ reflects the will of the U.S. Government. President Trump wants the dollar lower (a higher gold price would help achieve this), and a few weeks ago nominated well-known “gold standard” advocate Judy Shelton to the U.S. Federal Reserve Board.

And the Fed itself has been vigorously seeking higher inflation. A higher gold price would also help achieve this.

Is Gold a Bond?

One respected observer, commenting on gold in light of these enforcement actions, said that “gold is a high-yield bond of infinite duration and limited issuance”.

We agree, and are working to make SendGold the fastest, easiest, and most liquid way to own it.

Our 2020 Gold Outlook

Download our new App now and BUY 100% title to GOLD in minutes.

  •  


SendGold

February 13, 2020

Another year, another Valentine’s Day around the corner. While this is an exciting occasion for many, there are plenty who dread cheesy romance - especially if you’re out of thoughtful and meaningful gift ideas, with the holiday just a few days away.

If you find traditional romantic gifts a little overdone, we’ve got a few ideas that will help you nail a gift that’s not just exciting but entirely out of the ordinary too.

Some of these are also excellent if you’ve decided to celebrate yourself this Valentine’s Day - it’s a great opportunity to honour a lifelong commitment to the one person you can truly count on: Yourself. 

Now of course many SendGold customers have already send the gift of gold this year - the perfect last minute gift - with their custom message and unique virtual gift card. But if you still need other ideas, here is a list we've come up with:

An Amazon gift card

Valentine’s gift-giving can be stressful because no matter how well you know someone, there may be certain things they don’t share with you - like their secret obsession with miniature Disney figurines, for instance.

Regardless of what they’re not telling you, Amazon gift cards are the perfect Valentine’s Day gift because you’re basically just sponsoring a shopping spree on one of the biggest e-commerce marketplaces on the internet. No biggie. 

A smart home assistant

Smart homes are all the rage these days and if you’re looking for a gift that will add real value to your partner’s (or your) life, a smart home assistant is a surefire choice.

Not only can these order you an Uber, place your go-to order on the Domino’s app, and wake you up on time, but soon, you will be able to have entire conversations with sophisticated assistants like Alexa.

The best part about buying one of these devices is that they’re available at different price points and come with incredible features - did you know that they can even double as powerful Bluetooth speakers?

Digital gold

They say diamonds are forever but few naturally-occurring commodities like gold have retained value over thousands of years and continue to be highly relevant, high-value investments.

If you want to be more creative than simply gifting your partner a gold chain or any type of gold jewellery, digital gold is a great way to make an investment on behalf of your loved one this Valentine’s Day - it doesn’t get any more non-romantic, yet deeply meaningful, than that!

Digital gold also happens to be a great gift to give yourself - one that will bail you out on a rainy day, especially given that gold only continues to become more scarce and is increasing in value.

On our app, SendGold, you can not just buy and wrap up your gift in exciting Valentine’s Day-inspired gift wrap, but you can also sell your gold just as instantly as you buy it!

A weighted blanket

Another extremely popular (and non-romantic) gift idea is the weighted blanket that has set the internet ablaze with its proven benefits for anxiety and sleep.

Basically, these fluffy duvets, built with innovative cooling technology, are weighted, which means that when you cover yourself in them, there’s a relaxing pressure placed wherever your body is covered.

Proven to improve sleep, these blankets can be bought at different weights for people of different ages, tailoring the weight of the blanket with the bodyweight of the person it’s bought for.

Blue-light-blocking glasses

If you or your partner are all about the latest tech goodies up for grabs, blue-light-blocking glasses are a high-tech way to commemorate one of the most romantic days of the year.

These are perfect for people who spend all day in front of a computer or peering at their smartphones (basically, all of us). The glasses filter harmful blue light that disrupts the body’s Circadian Rhythm, which ultimately throws your sleep cycle off-balance.

Celebrate Valentine’s day with fun gift ideas that are meaningful and non-romantic

Valentine’s Day doesn’t have to be celebrated the way society demands you to. On the 14th of February, gift your special someone something that’s not a framed photo, a spa treatment or jewellery and actually make them feel special with something that’s a little different.

If it’s just you this Valentine’s Day, our gift ideas are still amazing - you just get to enjoy all the benefits yourself. Head to SendGold to begin your Valentine’s Day shopping - gold is a gift that keeps giving. 

 

Download our new App now and BUY 100% title to GOLD in minutes.

  •  

 


Mark Pey

January 17, 2020

With a new year and a new decade upon us we think it’s time to discuss our outlook for gold.

Gold is simultaneously a commodity, a currency, an investment, and a hedge against political uncertainty, so a look at each of these influences may provide some insight into how its price might react in the coming year.

Commodity

On the commodity side gold is used in jewellery and industrial applications and according to the World Gold Council global jewellery demand has been steady, so we would currently count this as a “neutral” influence. Commodity demand tends to reflect overall economic conditions and growth rates.

Currency

On the currency side gold competes with bank currencies, and it’s no secret that central banks have struggled over the last decade to maintain the integrity of their national currencies. The single biggest indicator of these struggles of course is the price of money, expressed as interest rates, and around the globe interest rates are effectively at (or even below) zero.

When something is priced at zero it is sending you a signal about its value, and while of course you can still exchange currencies for (fewer and fewer) goods and services, we do wonder how a debt-based currency system will  operate going forward if lenders are to receive nothing in exchange for extending credit.

The short-term answer seems to be that entities without underwriting expertise (central banks) must be willing to put risk on their books regardless of the borrower’s ability to repay, but there are limits to that approach.

The U.S. Federal Reserve Bank is well aware of these limits and flirted briefly in 2018 with reducing this form of life support for the financial system by shrinking their balance sheet. They reversed that policy in short order when billions were lost in the share market as a result.

The U.S. required $1.9 trillion in new debt issued in 2019 in order to keep the lights on, and more than 70% of that was issued with a term of 6 months or less. In “normal” times the USG would fund itself primarily in the 10- and 30-year bond markets, so this very short duration borrowing (bleeding into the overnight markets, where the Fed has stepped in with more than $3 trillion in support in the last 3 months) is an ominous sign.

So if the U.S. Dollar is gold’s competition (which it is) then the competition is looking fundamentally weak indeed.

Signing up to the currency wars recently with a “quantitative easing” (QE) program of their own has been the Reserve Bank of Australia, who do not seem troubled by the analysis of the IMF and the World Bank, and the opinions of the CEOs of the four largest banks in Europe, who have said that QE and negative interest rates “destroy the banking system”.

In a currency war you seek to lower the value of your currency in order to make your exports cheaper. Stated differently, the strategy is to try to make your country richer by making its citizens poorer.

In response to the RBA’s actions, gold hit all-time highs in Australian dollars in 2019 and we see no fundamental reason why that trend would change in 2020. The RBA has explained publicly that its policy is to reduce the value of the currency, but that does not mean you need to play along.

Investment

Gold competes in the investment markets with bonds and shares (and other investments). Bonds pay little or no interest today and rates are at 500-year lows, so it would seem that the $38 trillion bond market is risking a gold substitution trade.

Some of us have been around long enough to remember a rising interest rate environment, when bonds were called “certificates of confiscation”. If bonds pay you no interest, and you risk an erosion of your principal if rates drift upwards, and the currencies that bonds are denominated in confiscate your buying power over time, will more savers and capital preservation investors move from bonds to gold? We think they will.

The 9-year bull market in shares, driven almost entirely by share buybacks that reduce the number of shares outstanding (causing the price per share to rise), is now officially the longest equity bull market in history. We think one nagging fact should temper the bulls’ enthusiasm: corporate earnings are at exactly the same levels they were at in 2014 but share prices are now 70% higher.

Investment markets are funny, however; if we were talking about cars or TVs, people would go on a buyer’s strike after a 70% price hike. Those of us who favour a metal that is 25% denser than lead tend to be believers in gravity, but it’s not clear that 2020 (an election year) will be the year when gravity re-asserts itself in the share market. We may have to wait a little longer.

Geopolitics

On the geopolitical side gold’s role as a safe haven has come to the fore as tensions have mounted in the Middle East and elsewhere. These tensions peak and plateau, but even the plateau levels seem elevated these days so we believe geopolitics will continue to be supportive of even higher gold prices going forward.

Price Action

On the price action front we’re seeing a replay of 2017-2018 when the bullion banks worked feverishly to defend the $1200 (USD) price level. They failed. The recent price action sees them trying to defend the $1500 price level, and despite throwing more than 100,000 short Comex futures contracts at gold since last May to try to stem the metal’s rise, they do not seem to be having any more success defending $1500 than they did defending $1200.

Outlook

It’s worth recalling that savers and investors who choose gold as an alternative to bonds or shares will be competing for an exceedingly rare metal whose miners already venture up to 10,000 feet underground seeking minute amounts of it to sell. Despite these heroic and expensive efforts by miners the global supply of gold increases by a mere 1.6% per year.

So given the parlous state of money markets outlined above and the immovable fact of gold’s scarcity, we think there is a non-zero chance of a very asymmetric outcome for those lucky and smart enough to own gold: that they wake up one day to find an offerless market where gold gaps dramatically higher.

One analyst we respect (Jim Rickards, a contact and colleague of ours here at SendGold) has an upside price target of more than USD $5,000 per ounce or possibly even more.

Strategy

Our strategy in 2020 for the world’s premier precious metal, with its finite supply dictated by the laws of physics and not the whims of politicians or central bankers or corporate treasurers, can be summarised in one word: “accumulate”.

We’ll be rolling out exciting changes in SendGold in the coming months that we think will make SendGold your preferred option as you continue to accumulate history’s most reliable investment asset and one of the best hedges against political and market uncertainty.

Keeping our Clients Informed About Gold

Download our new App now and BUY 100% title to GOLD in minutes.

  •  


Mark Pey

March 24, 2020

In this two-part post, we will look at 3 things:

  1. How gold performed in the 2008 GFC
  2. Why the Covid-19 financial crisis is different
  3. How financial assets, including gold, might be expected to perform as the current crisis plays out.
We discuss the first two points in this post (Part 1).

Gold in the 2008 Crisis

The chart above shows the price of gold during and after the 2008 GFC. Of note is the initial reaction in 2008: gold declined. This was because gold is an extremely liquid asset with broad global participation and very deep markets. Investors liquidated gold in order to shore up losses elsewhere on their balance sheets and to avoid margin calls.

Once the immediate liquidity needs were offset, investors sought high-quality assets to invest in. Title to Physical Gold fit the bill because it is the safest investment asset there is: its value does not depend in any way on the performance of a counterparty. With doubts still lingering about the solvency and performance of counterparties of all kinds, including banks, funds, corporations, and even sovereign governments, investors sought out history’s best safe haven.

If we compare gold performance after the 2008 pre-crisis low to today’s gold bull run (so far) then we might expect that the current run still has a good ways to go:

But the Covid-19 financial crisis is different

The 2008 crisis started as a demand crisis as the solvency of global banks came into question. This made for an expensive but relatively straightforward fix, since the U.S. Federal Reserve Bank (and the other central banks) could inject money directly into banks.

But the Covid-19 crisis is manifesting first as a supply side crisis, as supply chains and companies shut down. So it is both the banks and their customers who require a bailout. And that supply shock is now spilling over to be a demand shock too.

And while the U.S. Federal Reserve is moving swiftly to support the financial assets of companies (through new overnight money market support and direct corporate bond purchases) they cannot support companies (and their employees) directly. That job is left to governments, who are now preparing very large fiscal stimulus and even direct payment packages.

In Part 2 we will comment on how financial assets including gold might be expected to perform as the current crisis plays out. Keep Calm and Carry On (Buying Gold) amid Covid-19 Jodi Stanton recognised as a finalist at the Women Leading Tech Awards Keeping our Clients Informed About Gold

Download our new app now and BUY 100% title to GOLD in minutes


Mark Pey

March 17, 2020

There is still much we do not know about the current Covid-19 situation and the economic impact it will have. But we do know that worldwide stock, bond, and currency markets are already in significant turmoil, with short-term bonds issued by the U.S. Government trading at negative interest rates this morning for the very first time in history. We think it’s useful in times like these to focus on what we do know, rather than let the emotions of uncertainty and fear guide our financial decisions.

The Four Faces of Gold

As discussed in our 2020 Gold Outlook, we know that gold plays multiple roles in an investment portfolio and as a financial asset. First of all gold of course is an investment. And as an investment that competes and compares to other investments like company shares it is faring well. In a general slowdown company earnings will suffer, but gold has no such cash flow requirements to meet. Secondly gold is a currency, with a difference. Gold is the only currency that has no counterparty, that does not rely on the performance of an issuing government or bank in order to have value. Thirdly, at SendGold we think of gold as a bank account alternative. For the first time, if you invest your money with the U.S. Government you will receive no interest whatsoever, and you will not even receive all of your principal back at maturity. That economic reality will make its way through to banks and bank accounts. This means that gold is more competitive than ever as a bank account alternative. Fourthly, gold is an insurance policy. It is widely used as a safe haven in uncertain times. No government currency, bond, share, bank, or investment vehicle has survived every single calamity in history. Gold has.

Four Reasons: One Answer

These four aspects of gold mean that practically everyone has a reason to own it, whether you are a saver, investor, or someone wanting simply to protect your wealth in dangerous times. At SendGold our mission has been to create the safest, most secure, simplest, most accessible, and most liquid way to own gold. So whether you’re a casual saver, a savvy investor, or just seeking a safe haven in the storm: think hard about whether gold has a place in your portfolio at this time. You can also take a look at our 2020 gold outlook. 2020 Gold Outlook Download our new app now and BUY 100% title to GOLD in minutes


Mark Pey

February 14, 2020

We at SendGold believe that one of our jobs is to help our customers stay informed about the precious metals markets so they can make better investment decisions. We do that by trying to separate gold market fact from fiction.

Part of this includes separating gold “conspiracy theories” from “conspiracy facts”.

Gold in The Ocean

One conspiracy theory for example says that there is a practically unlimited supply of gold that could be mined from seawater.

But it’s fairly simple to fact check this: according to New Scientist the amount of gold that exists in 100 million tons of seawater is 1 gram:  MIT Scientists: Gold in Seawater.

Gold In The Markets

Another prominent conspiracy theory that has circulated for years about gold is that its price is manipulated by the big banks (the so-called “bullion banks”).

Today we can report that this has now moved from the realm of “conspiracy theory” to that of “conspiracy fact”.

And no, it’s not the careful analysis by the team at SendGold that says so, it is the U.S. Department of Justice (DOJ).

Justice Is Served

Last Fall the DOJ handed down an indictment to J.P. Morgan bank. In it they stated that J.P. Morgan’s precious metals trading operation, one of the largest in the business, was (to quote) “a criminal enterprise” that “had manipulated the precious metals markets for at least a decade”.

U.S. DOJ Indictments

Most interestingly the DOJ used The RICO Act, which is normally only used for big drug cartels and the Mafia, in the indictment.

What This Could Mean

It’s widely thought that banks want to suppress the price of gold since it represents competition for all of their paper-based offerings: currencies, bank accounts, shares, and bonds.

Curbing price manipulation will mean that gold prices will better reflect actual market conditions. Supply (which is low) and demand (which is high) would be allowed to seek a more realistic equilibrium.

And the DOJ enforcement action against J.P. Morgan has reportedly sent the Compliance Departments of the other bullion banks (HSBC and others) to their own gold trading operations to make sure they are complying with the law.

Why Now?

We can speculate, but the DOJ reflects the will of the U.S. Government. President Trump wants the dollar lower (a higher gold price would help achieve this), and a few weeks ago nominated well-known “gold standard” advocate Judy Shelton to the U.S. Federal Reserve Board.

And the Fed itself has been vigorously seeking higher inflation. A higher gold price would also help achieve this.

Is Gold a Bond?

One respected observer, commenting on gold in light of these enforcement actions, said that “gold is a high-yield bond of infinite duration and limited issuance”.

We agree, and are working to make SendGold the fastest, easiest, and most liquid way to own it.

Our 2020 Gold Outlook

Download our new App now and BUY 100% title to GOLD in minutes.

  •  


SendGold

February 13, 2020

Another year, another Valentine’s Day around the corner. While this is an exciting occasion for many, there are plenty who dread cheesy romance - especially if you’re out of thoughtful and meaningful gift ideas, with the holiday just a few days away.

If you find traditional romantic gifts a little overdone, we’ve got a few ideas that will help you nail a gift that’s not just exciting but entirely out of the ordinary too.

Some of these are also excellent if you’ve decided to celebrate yourself this Valentine’s Day - it’s a great opportunity to honour a lifelong commitment to the one person you can truly count on: Yourself. 

Now of course many SendGold customers have already send the gift of gold this year - the perfect last minute gift - with their custom message and unique virtual gift card. But if you still need other ideas, here is a list we've come up with:

An Amazon gift card

Valentine’s gift-giving can be stressful because no matter how well you know someone, there may be certain things they don’t share with you - like their secret obsession with miniature Disney figurines, for instance.

Regardless of what they’re not telling you, Amazon gift cards are the perfect Valentine’s Day gift because you’re basically just sponsoring a shopping spree on one of the biggest e-commerce marketplaces on the internet. No biggie. 

A smart home assistant

Smart homes are all the rage these days and if you’re looking for a gift that will add real value to your partner’s (or your) life, a smart home assistant is a surefire choice.

Not only can these order you an Uber, place your go-to order on the Domino’s app, and wake you up on time, but soon, you will be able to have entire conversations with sophisticated assistants like Alexa.

The best part about buying one of these devices is that they’re available at different price points and come with incredible features - did you know that they can even double as powerful Bluetooth speakers?

Digital gold

They say diamonds are forever but few naturally-occurring commodities like gold have retained value over thousands of years and continue to be highly relevant, high-value investments.

If you want to be more creative than simply gifting your partner a gold chain or any type of gold jewellery, digital gold is a great way to make an investment on behalf of your loved one this Valentine’s Day - it doesn’t get any more non-romantic, yet deeply meaningful, than that!

Digital gold also happens to be a great gift to give yourself - one that will bail you out on a rainy day, especially given that gold only continues to become more scarce and is increasing in value.

On our app, SendGold, you can not just buy and wrap up your gift in exciting Valentine’s Day-inspired gift wrap, but you can also sell your gold just as instantly as you buy it!

A weighted blanket

Another extremely popular (and non-romantic) gift idea is the weighted blanket that has set the internet ablaze with its proven benefits for anxiety and sleep.

Basically, these fluffy duvets, built with innovative cooling technology, are weighted, which means that when you cover yourself in them, there’s a relaxing pressure placed wherever your body is covered.

Proven to improve sleep, these blankets can be bought at different weights for people of different ages, tailoring the weight of the blanket with the bodyweight of the person it’s bought for.

Blue-light-blocking glasses

If you or your partner are all about the latest tech goodies up for grabs, blue-light-blocking glasses are a high-tech way to commemorate one of the most romantic days of the year.

These are perfect for people who spend all day in front of a computer or peering at their smartphones (basically, all of us). The glasses filter harmful blue light that disrupts the body’s Circadian Rhythm, which ultimately throws your sleep cycle off-balance.

Celebrate Valentine’s day with fun gift ideas that are meaningful and non-romantic

Valentine’s Day doesn’t have to be celebrated the way society demands you to. On the 14th of February, gift your special someone something that’s not a framed photo, a spa treatment or jewellery and actually make them feel special with something that’s a little different.

If it’s just you this Valentine’s Day, our gift ideas are still amazing - you just get to enjoy all the benefits yourself. Head to SendGold to begin your Valentine’s Day shopping - gold is a gift that keeps giving. 

 

Download our new App now and BUY 100% title to GOLD in minutes.

  •  

 


Mark Pey

January 17, 2020

With a new year and a new decade upon us we think it’s time to discuss our outlook for gold.

Gold is simultaneously a commodity, a currency, an investment, and a hedge against political uncertainty, so a look at each of these influences may provide some insight into how its price might react in the coming year.

Commodity

On the commodity side gold is used in jewellery and industrial applications and according to the World Gold Council global jewellery demand has been steady, so we would currently count this as a “neutral” influence. Commodity demand tends to reflect overall economic conditions and growth rates.

Currency

On the currency side gold competes with bank currencies, and it’s no secret that central banks have struggled over the last decade to maintain the integrity of their national currencies. The single biggest indicator of these struggles of course is the price of money, expressed as interest rates, and around the globe interest rates are effectively at (or even below) zero.

When something is priced at zero it is sending you a signal about its value, and while of course you can still exchange currencies for (fewer and fewer) goods and services, we do wonder how a debt-based currency system will  operate going forward if lenders are to receive nothing in exchange for extending credit.

The short-term answer seems to be that entities without underwriting expertise (central banks) must be willing to put risk on their books regardless of the borrower’s ability to repay, but there are limits to that approach.

The U.S. Federal Reserve Bank is well aware of these limits and flirted briefly in 2018 with reducing this form of life support for the financial system by shrinking their balance sheet. They reversed that policy in short order when billions were lost in the share market as a result.

The U.S. required $1.9 trillion in new debt issued in 2019 in order to keep the lights on, and more than 70% of that was issued with a term of 6 months or less. In “normal” times the USG would fund itself primarily in the 10- and 30-year bond markets, so this very short duration borrowing (bleeding into the overnight markets, where the Fed has stepped in with more than $3 trillion in support in the last 3 months) is an ominous sign.

So if the U.S. Dollar is gold’s competition (which it is) then the competition is looking fundamentally weak indeed.

Signing up to the currency wars recently with a “quantitative easing” (QE) program of their own has been the Reserve Bank of Australia, who do not seem troubled by the analysis of the IMF and the World Bank, and the opinions of the CEOs of the four largest banks in Europe, who have said that QE and negative interest rates “destroy the banking system”.

In a currency war you seek to lower the value of your currency in order to make your exports cheaper. Stated differently, the strategy is to try to make your country richer by making its citizens poorer.

In response to the RBA’s actions, gold hit all-time highs in Australian dollars in 2019 and we see no fundamental reason why that trend would change in 2020. The RBA has explained publicly that its policy is to reduce the value of the currency, but that does not mean you need to play along.

Investment

Gold competes in the investment markets with bonds and shares (and other investments). Bonds pay little or no interest today and rates are at 500-year lows, so it would seem that the $38 trillion bond market is risking a gold substitution trade.

Some of us have been around long enough to remember a rising interest rate environment, when bonds were called “certificates of confiscation”. If bonds pay you no interest, and you risk an erosion of your principal if rates drift upwards, and the currencies that bonds are denominated in confiscate your buying power over time, will more savers and capital preservation investors move from bonds to gold? We think they will.

The 9-year bull market in shares, driven almost entirely by share buybacks that reduce the number of shares outstanding (causing the price per share to rise), is now officially the longest equity bull market in history. We think one nagging fact should temper the bulls’ enthusiasm: corporate earnings are at exactly the same levels they were at in 2014 but share prices are now 70% higher.

Investment markets are funny, however; if we were talking about cars or TVs, people would go on a buyer’s strike after a 70% price hike. Those of us who favour a metal that is 25% denser than lead tend to be believers in gravity, but it’s not clear that 2020 (an election year) will be the year when gravity re-asserts itself in the share market. We may have to wait a little longer.

Geopolitics

On the geopolitical side gold’s role as a safe haven has come to the fore as tensions have mounted in the Middle East and elsewhere. These tensions peak and plateau, but even the plateau levels seem elevated these days so we believe geopolitics will continue to be supportive of even higher gold prices going forward.

Price Action

On the price action front we’re seeing a replay of 2017-2018 when the bullion banks worked feverishly to defend the $1200 (USD) price level. They failed. The recent price action sees them trying to defend the $1500 price level, and despite throwing more than 100,000 short Comex futures contracts at gold since last May to try to stem the metal’s rise, they do not seem to be having any more success defending $1500 than they did defending $1200.

Outlook

It’s worth recalling that savers and investors who choose gold as an alternative to bonds or shares will be competing for an exceedingly rare metal whose miners already venture up to 10,000 feet underground seeking minute amounts of it to sell. Despite these heroic and expensive efforts by miners the global supply of gold increases by a mere 1.6% per year.

So given the parlous state of money markets outlined above and the immovable fact of gold’s scarcity, we think there is a non-zero chance of a very asymmetric outcome for those lucky and smart enough to own gold: that they wake up one day to find an offerless market where gold gaps dramatically higher.

One analyst we respect (Jim Rickards, a contact and colleague of ours here at SendGold) has an upside price target of more than USD $5,000 per ounce or possibly even more.

Strategy

Our strategy in 2020 for the world’s premier precious metal, with its finite supply dictated by the laws of physics and not the whims of politicians or central bankers or corporate treasurers, can be summarised in one word: “accumulate”.

We’ll be rolling out exciting changes in SendGold in the coming months that we think will make SendGold your preferred option as you continue to accumulate history’s most reliable investment asset and one of the best hedges against political and market uncertainty.

Keeping our Clients Informed About Gold

Download our new App now and BUY 100% title to GOLD in minutes.

  •  


SendGold

January 14, 2020

A holiday dedicated to the Sun God, Surya, Thai Pongal is an annual Hindu holiday, predominantly celebrated among Tamil communities around the world. Marking the end of the winter solstice, the holiday is a harvest festival that takes place over the course of three to four days. 

Given the rich culture and traditions of the Tamil community, Thai Pongal is celebrated with the aid of age-old customs that are followed with great reverence and exuberance. If you’re curious about how you can celebrate Thai Pongal this year, here are a few tips!

Prepare delicious sweetmeats for simple gastronomic delights

Did you know that Thai Pongal even has a special dish known as Pongal rice? 

Pongal, which literally means ‘to boil, overflow’, is a technique used to prepare the rice, which is made of rice from a new harvest, boiled in milk with jaggery, green gram, raisins, cashew nuts, cardamom and other ingredients. 

The dish is considered to be a pleasing sacrifice and is offered to Hindu gods during the festival. It’s usually on the second day that the family gathers together and prepares Pongal rice on a fire hearth made of bricks. The rice is cooked in a clay pot, with each family member adding a handful of rice in.

The sweet and aromatic rice is then served on a banana leaf and given to the family.

Other dishes you can prepare and enjoy with your family and friends include curd rice, coconut rice, lemon rice, idli sambar - a life-changing dish if you have it with a thick curry! - and vada, which can be made in different ways with a mix of pulses.

Give gifts to all those who are near and dear

Another major and exciting part of Thai Pongal is the exchange of meaningful gifts between close friends and family.

While there’s no restriction to what you can and can’t give, gold happens to be a very popular token of appreciation during this holiday period. While many celebrants prize their gold jewellery, you can now gift gold to the people you care about as quickly and as easily as you’d make a bank transfer. 

The best part? You don’t have to be a big spender this Thai Pongal; gift gold for any amount you’re comfortable spending - even as low as $10!

Give your home a thorough cleaning and throw out old belongings

In preparing for Thai Pongal, a major part of pre-festivities is spring cleaning your home! If you’ve been looking for a good reason to give your house a thorough scrub down, this is basically part and parcel of the holiday experience.

In this process, take a look at household items and belongings you no longer need and either give them to people who may need them or throw them out completely. In many households, it’s a Thai Pongal tradition to burn these items in a bonfire.

Make time for the people you care about

While engaging in the festivities during this holiday is important, what’s more important is spending time and forging deeper connections with your family, friends, and loved ones. 

Thai Pongal is meant to bring the whole family together with its cheerful festivities. Even if you don’t follow every tradition or custom, make sure you appreciate the people who love and support you during this holiday.

Visit a temple if you’re feeling inspired

On the second day of the festival, celebrants usually head to a temple to offer their prayers for a more prosperous year. A variety of processions usually take place here and this presents a wonderful opportunity for the community to gather and offer their good wishes to one another.

While you don’t have to visit a temple to celebrate this holiday, pay a visit to a nearby place of worship if you want to enjoy the full Thai Pongal experience. 

Celebrate Thai Pongal in good spirits with SendGold!

Bring your loved ones together this Thai Pongal and enjoy a truly joyous festival! Make this occasion extra special with gifts worth their weight in gold - literally.

With SendGold by your side, make a gift of gold for a truly auspicious start to the new year

Download our new App now and BUY 100% title to GOLD in minutes.

  •  


Mark Pey

March 24, 2020

In this two-part post, we will look at 3 things:

  1. How gold performed in the 2008 GFC
  2. Why the Covid-19 financial crisis is different
  3. How financial assets, including gold, might be expected to perform as the current crisis plays out.
We discuss the first two points in this post (Part 1).

Gold in the 2008 Crisis

The chart above shows the price of gold during and after the 2008 GFC. Of note is the initial reaction in 2008: gold declined. This was because gold is an extremely liquid asset with broad global participation and very deep markets. Investors liquidated gold in order to shore up losses elsewhere on their balance sheets and to avoid margin calls.

Once the immediate liquidity needs were offset, investors sought high-quality assets to invest in. Title to Physical Gold fit the bill because it is the safest investment asset there is: its value does not depend in any way on the performance of a counterparty. With doubts still lingering about the solvency and performance of counterparties of all kinds, including banks, funds, corporations, and even sovereign governments, investors sought out history’s best safe haven.

If we compare gold performance after the 2008 pre-crisis low to today’s gold bull run (so far) then we might expect that the current run still has a good ways to go:

But the Covid-19 financial crisis is different

The 2008 crisis started as a demand crisis as the solvency of global banks came into question. This made for an expensive but relatively straightforward fix, since the U.S. Federal Reserve Bank (and the other central banks) could inject money directly into banks.

But the Covid-19 crisis is manifesting first as a supply side crisis, as supply chains and companies shut down. So it is both the banks and their customers who require a bailout. And that supply shock is now spilling over to be a demand shock too.

And while the U.S. Federal Reserve is moving swiftly to support the financial assets of companies (through new overnight money market support and direct corporate bond purchases) they cannot support companies (and their employees) directly. That job is left to governments, who are now preparing very large fiscal stimulus and even direct payment packages.

In Part 2 we will comment on how financial assets including gold might be expected to perform as the current crisis plays out. Keep Calm and Carry On (Buying Gold) amid Covid-19 Jodi Stanton recognised as a finalist at the Women Leading Tech Awards Keeping our Clients Informed About Gold

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Mark Pey

March 17, 2020

There is still much we do not know about the current Covid-19 situation and the economic impact it will have. But we do know that worldwide stock, bond, and currency markets are already in significant turmoil, with short-term bonds issued by the U.S. Government trading at negative interest rates this morning for the very first time in history. We think it’s useful in times like these to focus on what we do know, rather than let the emotions of uncertainty and fear guide our financial decisions.

The Four Faces of Gold

As discussed in our 2020 Gold Outlook, we know that gold plays multiple roles in an investment portfolio and as a financial asset. First of all gold of course is an investment. And as an investment that competes and compares to other investments like company shares it is faring well. In a general slowdown company earnings will suffer, but gold has no such cash flow requirements to meet. Secondly gold is a currency, with a difference. Gold is the only currency that has no counterparty, that does not rely on the performance of an issuing government or bank in order to have value. Thirdly, at SendGold we think of gold as a bank account alternative. For the first time, if you invest your money with the U.S. Government you will receive no interest whatsoever, and you will not even receive all of your principal back at maturity. That economic reality will make its way through to banks and bank accounts. This means that gold is more competitive than ever as a bank account alternative. Fourthly, gold is an insurance policy. It is widely used as a safe haven in uncertain times. No government currency, bond, share, bank, or investment vehicle has survived every single calamity in history. Gold has.

Four Reasons: One Answer

These four aspects of gold mean that practically everyone has a reason to own it, whether you are a saver, investor, or someone wanting simply to protect your wealth in dangerous times. At SendGold our mission has been to create the safest, most secure, simplest, most accessible, and most liquid way to own gold. So whether you’re a casual saver, a savvy investor, or just seeking a safe haven in the storm: think hard about whether gold has a place in your portfolio at this time. You can also take a look at our 2020 gold outlook. 2020 Gold Outlook Download our new app now and BUY 100% title to GOLD in minutes


Mark Pey

February 14, 2020

We at SendGold believe that one of our jobs is to help our customers stay informed about the precious metals markets so they can make better investment decisions. We do that by trying to separate gold market fact from fiction.

Part of this includes separating gold “conspiracy theories” from “conspiracy facts”.

Gold in The Ocean

One conspiracy theory for example says that there is a practically unlimited supply of gold that could be mined from seawater.

But it’s fairly simple to fact check this: according to New Scientist the amount of gold that exists in 100 million tons of seawater is 1 gram:  MIT Scientists: Gold in Seawater.

Gold In The Markets

Another prominent conspiracy theory that has circulated for years about gold is that its price is manipulated by the big banks (the so-called “bullion banks”).

Today we can report that this has now moved from the realm of “conspiracy theory” to that of “conspiracy fact”.

And no, it’s not the careful analysis by the team at SendGold that says so, it is the U.S. Department of Justice (DOJ).

Justice Is Served

Last Fall the DOJ handed down an indictment to J.P. Morgan bank. In it they stated that J.P. Morgan’s precious metals trading operation, one of the largest in the business, was (to quote) “a criminal enterprise” that “had manipulated the precious metals markets for at least a decade”.

U.S. DOJ Indictments

Most interestingly the DOJ used The RICO Act, which is normally only used for big drug cartels and the Mafia, in the indictment.

What This Could Mean

It’s widely thought that banks want to suppress the price of gold since it represents competition for all of their paper-based offerings: currencies, bank accounts, shares, and bonds.

Curbing price manipulation will mean that gold prices will better reflect actual market conditions. Supply (which is low) and demand (which is high) would be allowed to seek a more realistic equilibrium.

And the DOJ enforcement action against J.P. Morgan has reportedly sent the Compliance Departments of the other bullion banks (HSBC and others) to their own gold trading operations to make sure they are complying with the law.

Why Now?

We can speculate, but the DOJ reflects the will of the U.S. Government. President Trump wants the dollar lower (a higher gold price would help achieve this), and a few weeks ago nominated well-known “gold standard” advocate Judy Shelton to the U.S. Federal Reserve Board.

And the Fed itself has been vigorously seeking higher inflation. A higher gold price would also help achieve this.

Is Gold a Bond?

One respected observer, commenting on gold in light of these enforcement actions, said that “gold is a high-yield bond of infinite duration and limited issuance”.

We agree, and are working to make SendGold the fastest, easiest, and most liquid way to own it.

Our 2020 Gold Outlook

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SendGold

February 13, 2020

Another year, another Valentine’s Day around the corner. While this is an exciting occasion for many, there are plenty who dread cheesy romance - especially if you’re out of thoughtful and meaningful gift ideas, with the holiday just a few days away.

If you find traditional romantic gifts a little overdone, we’ve got a few ideas that will help you nail a gift that’s not just exciting but entirely out of the ordinary too.

Some of these are also excellent if you’ve decided to celebrate yourself this Valentine’s Day - it’s a great opportunity to honour a lifelong commitment to the one person you can truly count on: Yourself. 

Now of course many SendGold customers have already send the gift of gold this year - the perfect last minute gift - with their custom message and unique virtual gift card. But if you still need other ideas, here is a list we've come up with:

An Amazon gift card

Valentine’s gift-giving can be stressful because no matter how well you know someone, there may be certain things they don’t share with you - like their secret obsession with miniature Disney figurines, for instance.

Regardless of what they’re not telling you, Amazon gift cards are the perfect Valentine’s Day gift because you’re basically just sponsoring a shopping spree on one of the biggest e-commerce marketplaces on the internet. No biggie. 

A smart home assistant

Smart homes are all the rage these days and if you’re looking for a gift that will add real value to your partner’s (or your) life, a smart home assistant is a surefire choice.

Not only can these order you an Uber, place your go-to order on the Domino’s app, and wake you up on time, but soon, you will be able to have entire conversations with sophisticated assistants like Alexa.

The best part about buying one of these devices is that they’re available at different price points and come with incredible features - did you know that they can even double as powerful Bluetooth speakers?

Digital gold

They say diamonds are forever but few naturally-occurring commodities like gold have retained value over thousands of years and continue to be highly relevant, high-value investments.

If you want to be more creative than simply gifting your partner a gold chain or any type of gold jewellery, digital gold is a great way to make an investment on behalf of your loved one this Valentine’s Day - it doesn’t get any more non-romantic, yet deeply meaningful, than that!

Digital gold also happens to be a great gift to give yourself - one that will bail you out on a rainy day, especially given that gold only continues to become more scarce and is increasing in value.

On our app, SendGold, you can not just buy and wrap up your gift in exciting Valentine’s Day-inspired gift wrap, but you can also sell your gold just as instantly as you buy it!

A weighted blanket

Another extremely popular (and non-romantic) gift idea is the weighted blanket that has set the internet ablaze with its proven benefits for anxiety and sleep.

Basically, these fluffy duvets, built with innovative cooling technology, are weighted, which means that when you cover yourself in them, there’s a relaxing pressure placed wherever your body is covered.

Proven to improve sleep, these blankets can be bought at different weights for people of different ages, tailoring the weight of the blanket with the bodyweight of the person it’s bought for.

Blue-light-blocking glasses

If you or your partner are all about the latest tech goodies up for grabs, blue-light-blocking glasses are a high-tech way to commemorate one of the most romantic days of the year.

These are perfect for people who spend all day in front of a computer or peering at their smartphones (basically, all of us). The glasses filter harmful blue light that disrupts the body’s Circadian Rhythm, which ultimately throws your sleep cycle off-balance.

Celebrate Valentine’s day with fun gift ideas that are meaningful and non-romantic

Valentine’s Day doesn’t have to be celebrated the way society demands you to. On the 14th of February, gift your special someone something that’s not a framed photo, a spa treatment or jewellery and actually make them feel special with something that’s a little different.

If it’s just you this Valentine’s Day, our gift ideas are still amazing - you just get to enjoy all the benefits yourself. Head to SendGold to begin your Valentine’s Day shopping - gold is a gift that keeps giving. 

 

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Mark Pey

January 17, 2020

With a new year and a new decade upon us we think it’s time to discuss our outlook for gold.

Gold is simultaneously a commodity, a currency, an investment, and a hedge against political uncertainty, so a look at each of these influences may provide some insight into how its price might react in the coming year.

Commodity

On the commodity side gold is used in jewellery and industrial applications and according to the World Gold Council global jewellery demand has been steady, so we would currently count this as a “neutral” influence. Commodity demand tends to reflect overall economic conditions and growth rates.

Currency

On the currency side gold competes with bank currencies, and it’s no secret that central banks have struggled over the last decade to maintain the integrity of their national currencies. The single biggest indicator of these struggles of course is the price of money, expressed as interest rates, and around the globe interest rates are effectively at (or even below) zero.

When something is priced at zero it is sending you a signal about its value, and while of course you can still exchange currencies for (fewer and fewer) goods and services, we do wonder how a debt-based currency system will  operate going forward if lenders are to receive nothing in exchange for extending credit.

The short-term answer seems to be that entities without underwriting expertise (central banks) must be willing to put risk on their books regardless of the borrower’s ability to repay, but there are limits to that approach.

The U.S. Federal Reserve Bank is well aware of these limits and flirted briefly in 2018 with reducing this form of life support for the financial system by shrinking their balance sheet. They reversed that policy in short order when billions were lost in the share market as a result.

The U.S. required $1.9 trillion in new debt issued in 2019 in order to keep the lights on, and more than 70% of that was issued with a term of 6 months or less. In “normal” times the USG would fund itself primarily in the 10- and 30-year bond markets, so this very short duration borrowing (bleeding into the overnight markets, where the Fed has stepped in with more than $3 trillion in support in the last 3 months) is an ominous sign.

So if the U.S. Dollar is gold’s competition (which it is) then the competition is looking fundamentally weak indeed.

Signing up to the currency wars recently with a “quantitative easing” (QE) program of their own has been the Reserve Bank of Australia, who do not seem troubled by the analysis of the IMF and the World Bank, and the opinions of the CEOs of the four largest banks in Europe, who have said that QE and negative interest rates “destroy the banking system”.

In a currency war you seek to lower the value of your currency in order to make your exports cheaper. Stated differently, the strategy is to try to make your country richer by making its citizens poorer.

In response to the RBA’s actions, gold hit all-time highs in Australian dollars in 2019 and we see no fundamental reason why that trend would change in 2020. The RBA has explained publicly that its policy is to reduce the value of the currency, but that does not mean you need to play along.

Investment

Gold competes in the investment markets with bonds and shares (and other investments). Bonds pay little or no interest today and rates are at 500-year lows, so it would seem that the $38 trillion bond market is risking a gold substitution trade.

Some of us have been around long enough to remember a rising interest rate environment, when bonds were called “certificates of confiscation”. If bonds pay you no interest, and you risk an erosion of your principal if rates drift upwards, and the currencies that bonds are denominated in confiscate your buying power over time, will more savers and capital preservation investors move from bonds to gold? We think they will.

The 9-year bull market in shares, driven almost entirely by share buybacks that reduce the number of shares outstanding (causing the price per share to rise), is now officially the longest equity bull market in history. We think one nagging fact should temper the bulls’ enthusiasm: corporate earnings are at exactly the same levels they were at in 2014 but share prices are now 70% higher.

Investment markets are funny, however; if we were talking about cars or TVs, people would go on a buyer’s strike after a 70% price hike. Those of us who favour a metal that is 25% denser than lead tend to be believers in gravity, but it’s not clear that 2020 (an election year) will be the year when gravity re-asserts itself in the share market. We may have to wait a little longer.

Geopolitics

On the geopolitical side gold’s role as a safe haven has come to the fore as tensions have mounted in the Middle East and elsewhere. These tensions peak and plateau, but even the plateau levels seem elevated these days so we believe geopolitics will continue to be supportive of even higher gold prices going forward.

Price Action

On the price action front we’re seeing a replay of 2017-2018 when the bullion banks worked feverishly to defend the $1200 (USD) price level. They failed. The recent price action sees them trying to defend the $1500 price level, and despite throwing more than 100,000 short Comex futures contracts at gold since last May to try to stem the metal’s rise, they do not seem to be having any more success defending $1500 than they did defending $1200.

Outlook

It’s worth recalling that savers and investors who choose gold as an alternative to bonds or shares will be competing for an exceedingly rare metal whose miners already venture up to 10,000 feet underground seeking minute amounts of it to sell. Despite these heroic and expensive efforts by miners the global supply of gold increases by a mere 1.6% per year.

So given the parlous state of money markets outlined above and the immovable fact of gold’s scarcity, we think there is a non-zero chance of a very asymmetric outcome for those lucky and smart enough to own gold: that they wake up one day to find an offerless market where gold gaps dramatically higher.

One analyst we respect (Jim Rickards, a contact and colleague of ours here at SendGold) has an upside price target of more than USD $5,000 per ounce or possibly even more.

Strategy

Our strategy in 2020 for the world’s premier precious metal, with its finite supply dictated by the laws of physics and not the whims of politicians or central bankers or corporate treasurers, can be summarised in one word: “accumulate”.

We’ll be rolling out exciting changes in SendGold in the coming months that we think will make SendGold your preferred option as you continue to accumulate history’s most reliable investment asset and one of the best hedges against political and market uncertainty.

Keeping our Clients Informed About Gold

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SendGold

January 14, 2020

A holiday dedicated to the Sun God, Surya, Thai Pongal is an annual Hindu holiday, predominantly celebrated among Tamil communities around the world. Marking the end of the winter solstice, the holiday is a harvest festival that takes place over the course of three to four days. 

Given the rich culture and traditions of the Tamil community, Thai Pongal is celebrated with the aid of age-old customs that are followed with great reverence and exuberance. If you’re curious about how you can celebrate Thai Pongal this year, here are a few tips!

Prepare delicious sweetmeats for simple gastronomic delights

Did you know that Thai Pongal even has a special dish known as Pongal rice? 

Pongal, which literally means ‘to boil, overflow’, is a technique used to prepare the rice, which is made of rice from a new harvest, boiled in milk with jaggery, green gram, raisins, cashew nuts, cardamom and other ingredients. 

The dish is considered to be a pleasing sacrifice and is offered to Hindu gods during the festival. It’s usually on the second day that the family gathers together and prepares Pongal rice on a fire hearth made of bricks. The rice is cooked in a clay pot, with each family member adding a handful of rice in.

The sweet and aromatic rice is then served on a banana leaf and given to the family.

Other dishes you can prepare and enjoy with your family and friends include curd rice, coconut rice, lemon rice, idli sambar - a life-changing dish if you have it with a thick curry! - and vada, which can be made in different ways with a mix of pulses.

Give gifts to all those who are near and dear

Another major and exciting part of Thai Pongal is the exchange of meaningful gifts between close friends and family.

While there’s no restriction to what you can and can’t give, gold happens to be a very popular token of appreciation during this holiday period. While many celebrants prize their gold jewellery, you can now gift gold to the people you care about as quickly and as easily as you’d make a bank transfer. 

The best part? You don’t have to be a big spender this Thai Pongal; gift gold for any amount you’re comfortable spending - even as low as $10!

Give your home a thorough cleaning and throw out old belongings

In preparing for Thai Pongal, a major part of pre-festivities is spring cleaning your home! If you’ve been looking for a good reason to give your house a thorough scrub down, this is basically part and parcel of the holiday experience.

In this process, take a look at household items and belongings you no longer need and either give them to people who may need them or throw them out completely. In many households, it’s a Thai Pongal tradition to burn these items in a bonfire.

Make time for the people you care about

While engaging in the festivities during this holiday is important, what’s more important is spending time and forging deeper connections with your family, friends, and loved ones. 

Thai Pongal is meant to bring the whole family together with its cheerful festivities. Even if you don’t follow every tradition or custom, make sure you appreciate the people who love and support you during this holiday.

Visit a temple if you’re feeling inspired

On the second day of the festival, celebrants usually head to a temple to offer their prayers for a more prosperous year. A variety of processions usually take place here and this presents a wonderful opportunity for the community to gather and offer their good wishes to one another.

While you don’t have to visit a temple to celebrate this holiday, pay a visit to a nearby place of worship if you want to enjoy the full Thai Pongal experience. 

Celebrate Thai Pongal in good spirits with SendGold!

Bring your loved ones together this Thai Pongal and enjoy a truly joyous festival! Make this occasion extra special with gifts worth their weight in gold - literally.

With SendGold by your side, make a gift of gold for a truly auspicious start to the new year

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Mark Pey

September 16, 2019

Buying gold in an ETF means you have performance risk from multiple parties, a declining quantity of gold, and unknown, uninsured custody risk.

Some investors use Exchange-traded Funds (ETFs) to gain exposure to the price of gold. But while gold ETFs do track the price of gold they do not convey one of the main benefits of gold ownership: protection from systemic financial risk.

“Systemic risk” is when a financial institution or the financial system itself fails. History is littered with such events. In the Great Depression more than 5,000 U.S. banks closed their doors and depositors were wiped out. In the GFC banks failed across the globe.

ETFs are shares, not gold

With a gold ETF you do not own gold. You own shares. In the case of the largest gold ETF (GLD) these shares are managed by a set of systemic Wall St. financial intermediaries. These include “Sponsors”, “Marketing Agents”, “Authorized Participants”, “Custodians”, “Sub-Custodians”, and even “Sub-sub Custodians”.

The GLD ETF continually sells some of the gold to pay these middlemen, as the fine print from their prospectus lays out:

“The amount of gold held by GLD will continue to be reduced during the life of the Trust due to the sales of gold necessary to pay the Trust’s expenses”.

ETF gold is not protected by contracts, monitoring, or insurance

More concerning is that the GLD Custodian can appoint sub-custodians with no written contracts:

“These further subcustodians are not expected to have written custody agreements with the Custodian’s subcustodians that selected them.”

Is not required to monitor or to be responsible for their performance:

“The Custodian does not undertake to monitor the performance by subcustodians of their custody functions or their selection of additional subcustodians and is not responsible for the actions or inactions of subcustodians.”

Or to carry insurance:

“The Custodian and the Trustee do not require any direct or indirect sub-custodians to be insured or bonded with respect to their custodial activities”.

SendGold to the rescue

We invite our customers to read the fine print of their SendGold account here.

To summarise: With SendGold you are the individual outright owner of physical gold metal, protected under Australia’s strict property, consumer and financial laws, and insured against damage or theft by Lloyd’s of London.

Read about what J.P. Morgan and Bank of America have to say about the price of gold.

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