Mark Pey

June 30, 2020

With the collapse of banking provider Wirecard, it's worth revisiting the benefits of actually owning gold versus owning “paper gold” derivatives like ETFs.

Last week, the multi-billion dollar German banking provider, Wirecard, suddenly and dramatically collapsed and their CEO was arrested. The Wirecard board said, “There is a prevailing likelihood that the bank trust account balances in the amount of 1.9 billion euros (AUD $3.1 billion) do not exist."

In the Wirecard case, the trouble began to come to light when The Financial Times reported doubts about the complexity of the company’s accounting. The powerful top German regulator, BaFin, threatened to sue the FT for libel. Now, the top European regulator is investigating BaFin themselves and a class action lawsuit against Wirecard’s auditor, Ernst & Young, has been filed.

At SendGold, we have long held that the best way to own gold, whose function at the end of the day is to protect wealth through any and all financial market scenarios, is through individual outright ownership of physical gold metal, full stop. The reason we have structured our company this way is because complexity is the enemy of security, and we believe this is the simplest and most secure structure.

The structure of Wirecard was so complex that neither the regulator nor the auditor could reliably determine its ongoing soundness. We think customers should apply a similar "simplicity" (and transparency) acid test to owning paper gold derivatives like ETFs:

  • ETFs are shares. This means they are owned by the broker-dealer in what’s called “street name”, and the broker-dealer owes the value of the shares to customers. To repeat: The broker-dealer owns the shares.
  • Underneath this ETF share structure, there can be a number of subsidiary legal arrangements from different counterparts including “sponsors”, “marketing agents”, “authorised participants”, “custodians”, “sub-custodians”, and even “sub-sub custodians”.
  • Amazingly, in the case of the largest gold ETF GLD, these arrangements are not even covered by written contracts, monitoring, or insurance. We discussed the details of this in a prior blog post: https://www.sendgold.com/gold-etf-it-always-pays-to-read-the-fine-print/

We are all still figuring out what post-Covid-19 life will be like but a few trends seem to be emerging. People are seeking to simplify their lives and seek greater transparency from their financial providers and their relationships.

With financial and economic risks on the rise and headlines like Wirecard appearing, people want to protect what they have by knowing that they actually own it, no matter what the next news headline might reveal.

  NEW! Invest in Gold with your SMSF What’s going on with the price of gold in Australian dollars? Volt Bank’s Maria Loyez joins SendGold as Chief Customer Experience Advisor  

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


Mark Pey

June 30, 2020

With the collapse of banking provider Wirecard, it's worth revisiting the benefits of actually owning gold versus owning “paper gold” derivatives like ETFs.

Last week, the multi-billion dollar German banking provider, Wirecard, suddenly and dramatically collapsed and their CEO was arrested. The Wirecard board said, “There is a prevailing likelihood that the bank trust account balances in the amount of 1.9 billion euros (AUD $3.1 billion) do not exist."

In the Wirecard case, the trouble began to come to light when The Financial Times reported doubts about the complexity of the company’s accounting. The powerful top German regulator, BaFin, threatened to sue the FT for libel. Now, the top European regulator is investigating BaFin themselves and a class action lawsuit against Wirecard’s auditor, Ernst & Young, has been filed.

At SendGold, we have long held that the best way to own gold, whose function at the end of the day is to protect wealth through any and all financial market scenarios, is through individual outright ownership of physical gold metal, full stop. The reason we have structured our company this way is because complexity is the enemy of security, and we believe this is the simplest and most secure structure.

The structure of Wirecard was so complex that neither the regulator nor the auditor could reliably determine its ongoing soundness. We think customers should apply a similar "simplicity" (and transparency) acid test to owning paper gold derivatives like ETFs:

  • ETFs are shares. This means they are owned by the broker-dealer in what’s called “street name”, and the broker-dealer owes the value of the shares to customers. To repeat: The broker-dealer owns the shares.
  • Underneath this ETF share structure, there can be a number of subsidiary legal arrangements from different counterparts including “sponsors”, “marketing agents”, “authorised participants”, “custodians”, “sub-custodians”, and even “sub-sub custodians”.
  • Amazingly, in the case of the largest gold ETF GLD, these arrangements are not even covered by written contracts, monitoring, or insurance. We discussed the details of this in a prior blog post: https://www.sendgold.com/gold-etf-it-always-pays-to-read-the-fine-print/

We are all still figuring out what post-Covid-19 life will be like but a few trends seem to be emerging. People are seeking to simplify their lives and seek greater transparency from their financial providers and their relationships.

With financial and economic risks on the rise and headlines like Wirecard appearing, people want to protect what they have by knowing that they actually own it, no matter what the next news headline might reveal.

  NEW! Invest in Gold with your SMSF What’s going on with the price of gold in Australian dollars? Volt Bank’s Maria Loyez joins SendGold as Chief Customer Experience Advisor  

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


Mark Pey

May 27, 2020

The crisis and financial response have created a sense of uncertainty and gold market investors are not immune to this uncertainty. News headlines can seem to show the way forward but then can be contradicted by later headlines as the crisis situation continues to unfold.

This can create a mental tug-of-war as investors decide how to position their portfolios. For example, retail sales, including sales of gold jewellery, have shown a steep decline:

https://www.forbes.com/sites/anthonydemarco/2020/05/01/coronavirus-causes-1st-quarter-gold-jewelry-demand-to-plunged-39/#5649aa8719f4

In response, though, governments have pledged more than $6 trillion in new borrowing to stimulate demand. So falling demand for gold jewellery has been outweighed so far by investors demanding currencies like gold that cannot simply be printed in unlimited quantities:

https://www.marketwatch.com/story/gold-as-an-investment-is-made-for-times-like-these-2020-05-05

Shares and bonds versus gold

Some investments that compete with gold, like shares, have staged a rebound from their lows. But the real-world companies underlying those shares have taken historic hits to both their earnings and their balance sheets, casting doubts as to whether their share price performance can continue. (Absent, of course, even more money printing, with the same effect as noted in the previous paragraph):

https://www.wsj.com/articles/why-is-the-stock-market-rallying-when-the-economy-is-so-bad-11588974327

And on the bond front, would you agree to loan someone $1000 at no interest, and after two years receive just $980 back? This is the position government bond investors in Europe and Japan are already in. With the U.K. now joining the NIRP (Negative Interest Rate Policy) Club and the likelihood that the U.S. is to follow shortly, it’s no wonder that capital preservation investors are seeking the certainty of gold. It also may pay no interest but at least they know their investment is secure, away from prying government hands:

https://uk.finance.yahoo.com/news/coronavirus-covid-19-uk-government-negative-yield-bond-gilt-144510468.html

The four horsemen

On the “safe haven” front we have all four of the horsemen of the apocalypse (war, pandemic, famine, and death) galloping around, so it’s no surprise that the gold price continues to be supported by a safe haven bid. With the world’s two largest economies gearing up for an epic battle over trade, cyber, Covid-19, and many other things, protecting wealth from worst-case scenarios is top of mind for investors of all sizes.

Uncertainty need not equal inaction

 We think the crisis so far has been a time for people and gold market investors to return to thinking about the fundamentals. The confluence of monetary, investment, and economic fundamentals continues to point to further uncertainty. But it’s precisely in times like these that gold comes to the rescue of investors and savers trying to protect what’s important to them.

  Kerry Stevenson interview with Jodi Stanton, CEO & Co-founder of SendGold Gold Price and the Ongoing Covid-19 Crisis, April 22 Update – Part 2 of 2 SendGold Update – Ramping up Services as Gold Demand Skyrockets  

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


Mark Pey

June 30, 2020

With the collapse of banking provider Wirecard, it's worth revisiting the benefits of actually owning gold versus owning “paper gold” derivatives like ETFs.

Last week, the multi-billion dollar German banking provider, Wirecard, suddenly and dramatically collapsed and their CEO was arrested. The Wirecard board said, “There is a prevailing likelihood that the bank trust account balances in the amount of 1.9 billion euros (AUD $3.1 billion) do not exist."

In the Wirecard case, the trouble began to come to light when The Financial Times reported doubts about the complexity of the company’s accounting. The powerful top German regulator, BaFin, threatened to sue the FT for libel. Now, the top European regulator is investigating BaFin themselves and a class action lawsuit against Wirecard’s auditor, Ernst & Young, has been filed.

At SendGold, we have long held that the best way to own gold, whose function at the end of the day is to protect wealth through any and all financial market scenarios, is through individual outright ownership of physical gold metal, full stop. The reason we have structured our company this way is because complexity is the enemy of security, and we believe this is the simplest and most secure structure.

The structure of Wirecard was so complex that neither the regulator nor the auditor could reliably determine its ongoing soundness. We think customers should apply a similar "simplicity" (and transparency) acid test to owning paper gold derivatives like ETFs:

  • ETFs are shares. This means they are owned by the broker-dealer in what’s called “street name”, and the broker-dealer owes the value of the shares to customers. To repeat: The broker-dealer owns the shares.
  • Underneath this ETF share structure, there can be a number of subsidiary legal arrangements from different counterparts including “sponsors”, “marketing agents”, “authorised participants”, “custodians”, “sub-custodians”, and even “sub-sub custodians”.
  • Amazingly, in the case of the largest gold ETF GLD, these arrangements are not even covered by written contracts, monitoring, or insurance. We discussed the details of this in a prior blog post: https://www.sendgold.com/gold-etf-it-always-pays-to-read-the-fine-print/

We are all still figuring out what post-Covid-19 life will be like but a few trends seem to be emerging. People are seeking to simplify their lives and seek greater transparency from their financial providers and their relationships.

With financial and economic risks on the rise and headlines like Wirecard appearing, people want to protect what they have by knowing that they actually own it, no matter what the next news headline might reveal.

  NEW! Invest in Gold with your SMSF What’s going on with the price of gold in Australian dollars? Volt Bank’s Maria Loyez joins SendGold as Chief Customer Experience Advisor  

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


Mark Pey

May 27, 2020

The crisis and financial response have created a sense of uncertainty and gold market investors are not immune to this uncertainty. News headlines can seem to show the way forward but then can be contradicted by later headlines as the crisis situation continues to unfold.

This can create a mental tug-of-war as investors decide how to position their portfolios. For example, retail sales, including sales of gold jewellery, have shown a steep decline:

https://www.forbes.com/sites/anthonydemarco/2020/05/01/coronavirus-causes-1st-quarter-gold-jewelry-demand-to-plunged-39/#5649aa8719f4

In response, though, governments have pledged more than $6 trillion in new borrowing to stimulate demand. So falling demand for gold jewellery has been outweighed so far by investors demanding currencies like gold that cannot simply be printed in unlimited quantities:

https://www.marketwatch.com/story/gold-as-an-investment-is-made-for-times-like-these-2020-05-05

Shares and bonds versus gold

Some investments that compete with gold, like shares, have staged a rebound from their lows. But the real-world companies underlying those shares have taken historic hits to both their earnings and their balance sheets, casting doubts as to whether their share price performance can continue. (Absent, of course, even more money printing, with the same effect as noted in the previous paragraph):

https://www.wsj.com/articles/why-is-the-stock-market-rallying-when-the-economy-is-so-bad-11588974327

And on the bond front, would you agree to loan someone $1000 at no interest, and after two years receive just $980 back? This is the position government bond investors in Europe and Japan are already in. With the U.K. now joining the NIRP (Negative Interest Rate Policy) Club and the likelihood that the U.S. is to follow shortly, it’s no wonder that capital preservation investors are seeking the certainty of gold. It also may pay no interest but at least they know their investment is secure, away from prying government hands:

https://uk.finance.yahoo.com/news/coronavirus-covid-19-uk-government-negative-yield-bond-gilt-144510468.html

The four horsemen

On the “safe haven” front we have all four of the horsemen of the apocalypse (war, pandemic, famine, and death) galloping around, so it’s no surprise that the gold price continues to be supported by a safe haven bid. With the world’s two largest economies gearing up for an epic battle over trade, cyber, Covid-19, and many other things, protecting wealth from worst-case scenarios is top of mind for investors of all sizes.

Uncertainty need not equal inaction

 We think the crisis so far has been a time for people and gold market investors to return to thinking about the fundamentals. The confluence of monetary, investment, and economic fundamentals continues to point to further uncertainty. But it’s precisely in times like these that gold comes to the rescue of investors and savers trying to protect what’s important to them.

  Kerry Stevenson interview with Jodi Stanton, CEO & Co-founder of SendGold Gold Price and the Ongoing Covid-19 Crisis, April 22 Update – Part 2 of 2 SendGold Update – Ramping up Services as Gold Demand Skyrockets  

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


SendGold

May 21, 2020

Ramadan 2020 will certainly go down in history. For the first time, during this holy month, we can no longer open our homes, families can’t come together in quite the same way, and pilgrimages can’t be embarked on. Ramadan is about faith, prayer, fasting, reflection, and community. It is the most important month in the Muslim calendar and holds significant meaning for all those who celebrate it. It’s such a vital part of the year that its personal and spiritual significance cannot be overstated.  Ramadan is characterised by the generosity that is shared, with many gathering to break fast and inviting guests over for iftar. During Ramadan 2020, these practices are unsafe and instead, we have had to turn inwards, to our homes and ourselves, to mark this holy month. In spite of these circumstances, however, Muslims around the world haven’t let COVID-19 get them down. Ramadan 2020 may have us all confined to our homes, but this has become an opportunity for a display of faith, a time for spiritual growth, and the creation of a community that embraces the true significance of Ramadan, even in the face of adversity  Despite social distancing, lockdowns, and quarantine, the most sacred month of the year in Islamic culture has brought with it a reminder of the unity of the human spirit. While abiding by social distancing guidelines, Muslims have taken to virtual gatherings to celebrate together as a community - staying together while staying apart.  Social distancing doesn’t have to mean isolation, and Muslims are teaching the world right now how to keep our spirits up and find inner peace and spiritual growth while demonstrating that the strength of a community is not limited by physical barriers.  Whether this means decorating their homes, digital gifting, connecting to the extended family through video conferencing, virtual iftars or participating in the many virtual spaces created by Islamic institutions and foundations, this has become a time to reaffirm faith and maintain a positive perspective.  While Ramadan 2020 is challenging the many personal traditions that have been established over time, being safe at home is paramount given the current health risks. One thing the COVID-19 pandemic has taught us is that while these disruptions have been inconvenient, heart-wrenching, and difficult to reconcile with, especially in times of celebration and during community events such as Ramadan, the repercussions of the alternative are much worse.  Generosity and community have been redefined, as the best way to serve each other and action good deeds has been to keep our distance; a personal sacrifice we’ve seen during this time. May the social distancing of Ramadan 2020 turn into a time of inner peace and contentment for everyone, the world over. Eid Mubarak and Happy Ramadan to all those celebrating! Earn free gold   Celebrating someone worth their weight in gold Kerry Stevenson interview with Jodi Stanton, CEO & Co-founder of SendGold Gold Price and the Ongoing Covid-19 Crisis, April 22 Update – Part 2 of 2  

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


Mark Pey

June 30, 2020

With the collapse of banking provider Wirecard, it's worth revisiting the benefits of actually owning gold versus owning “paper gold” derivatives like ETFs.

Last week, the multi-billion dollar German banking provider, Wirecard, suddenly and dramatically collapsed and their CEO was arrested. The Wirecard board said, “There is a prevailing likelihood that the bank trust account balances in the amount of 1.9 billion euros (AUD $3.1 billion) do not exist."

In the Wirecard case, the trouble began to come to light when The Financial Times reported doubts about the complexity of the company’s accounting. The powerful top German regulator, BaFin, threatened to sue the FT for libel. Now, the top European regulator is investigating BaFin themselves and a class action lawsuit against Wirecard’s auditor, Ernst & Young, has been filed.

At SendGold, we have long held that the best way to own gold, whose function at the end of the day is to protect wealth through any and all financial market scenarios, is through individual outright ownership of physical gold metal, full stop. The reason we have structured our company this way is because complexity is the enemy of security, and we believe this is the simplest and most secure structure.

The structure of Wirecard was so complex that neither the regulator nor the auditor could reliably determine its ongoing soundness. We think customers should apply a similar "simplicity" (and transparency) acid test to owning paper gold derivatives like ETFs:

  • ETFs are shares. This means they are owned by the broker-dealer in what’s called “street name”, and the broker-dealer owes the value of the shares to customers. To repeat: The broker-dealer owns the shares.
  • Underneath this ETF share structure, there can be a number of subsidiary legal arrangements from different counterparts including “sponsors”, “marketing agents”, “authorised participants”, “custodians”, “sub-custodians”, and even “sub-sub custodians”.
  • Amazingly, in the case of the largest gold ETF GLD, these arrangements are not even covered by written contracts, monitoring, or insurance. We discussed the details of this in a prior blog post: https://www.sendgold.com/gold-etf-it-always-pays-to-read-the-fine-print/

We are all still figuring out what post-Covid-19 life will be like but a few trends seem to be emerging. People are seeking to simplify their lives and seek greater transparency from their financial providers and their relationships.

With financial and economic risks on the rise and headlines like Wirecard appearing, people want to protect what they have by knowing that they actually own it, no matter what the next news headline might reveal.

  NEW! Invest in Gold with your SMSF What’s going on with the price of gold in Australian dollars? Volt Bank’s Maria Loyez joins SendGold as Chief Customer Experience Advisor  

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


Mark Pey

May 27, 2020

The crisis and financial response have created a sense of uncertainty and gold market investors are not immune to this uncertainty. News headlines can seem to show the way forward but then can be contradicted by later headlines as the crisis situation continues to unfold.

This can create a mental tug-of-war as investors decide how to position their portfolios. For example, retail sales, including sales of gold jewellery, have shown a steep decline:

https://www.forbes.com/sites/anthonydemarco/2020/05/01/coronavirus-causes-1st-quarter-gold-jewelry-demand-to-plunged-39/#5649aa8719f4

In response, though, governments have pledged more than $6 trillion in new borrowing to stimulate demand. So falling demand for gold jewellery has been outweighed so far by investors demanding currencies like gold that cannot simply be printed in unlimited quantities:

https://www.marketwatch.com/story/gold-as-an-investment-is-made-for-times-like-these-2020-05-05

Shares and bonds versus gold

Some investments that compete with gold, like shares, have staged a rebound from their lows. But the real-world companies underlying those shares have taken historic hits to both their earnings and their balance sheets, casting doubts as to whether their share price performance can continue. (Absent, of course, even more money printing, with the same effect as noted in the previous paragraph):

https://www.wsj.com/articles/why-is-the-stock-market-rallying-when-the-economy-is-so-bad-11588974327

And on the bond front, would you agree to loan someone $1000 at no interest, and after two years receive just $980 back? This is the position government bond investors in Europe and Japan are already in. With the U.K. now joining the NIRP (Negative Interest Rate Policy) Club and the likelihood that the U.S. is to follow shortly, it’s no wonder that capital preservation investors are seeking the certainty of gold. It also may pay no interest but at least they know their investment is secure, away from prying government hands:

https://uk.finance.yahoo.com/news/coronavirus-covid-19-uk-government-negative-yield-bond-gilt-144510468.html

The four horsemen

On the “safe haven” front we have all four of the horsemen of the apocalypse (war, pandemic, famine, and death) galloping around, so it’s no surprise that the gold price continues to be supported by a safe haven bid. With the world’s two largest economies gearing up for an epic battle over trade, cyber, Covid-19, and many other things, protecting wealth from worst-case scenarios is top of mind for investors of all sizes.

Uncertainty need not equal inaction

 We think the crisis so far has been a time for people and gold market investors to return to thinking about the fundamentals. The confluence of monetary, investment, and economic fundamentals continues to point to further uncertainty. But it’s precisely in times like these that gold comes to the rescue of investors and savers trying to protect what’s important to them.

  Kerry Stevenson interview with Jodi Stanton, CEO & Co-founder of SendGold Gold Price and the Ongoing Covid-19 Crisis, April 22 Update – Part 2 of 2 SendGold Update – Ramping up Services as Gold Demand Skyrockets  

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


SendGold

May 21, 2020

Ramadan 2020 will certainly go down in history. For the first time, during this holy month, we can no longer open our homes, families can’t come together in quite the same way, and pilgrimages can’t be embarked on. Ramadan is about faith, prayer, fasting, reflection, and community. It is the most important month in the Muslim calendar and holds significant meaning for all those who celebrate it. It’s such a vital part of the year that its personal and spiritual significance cannot be overstated.  Ramadan is characterised by the generosity that is shared, with many gathering to break fast and inviting guests over for iftar. During Ramadan 2020, these practices are unsafe and instead, we have had to turn inwards, to our homes and ourselves, to mark this holy month. In spite of these circumstances, however, Muslims around the world haven’t let COVID-19 get them down. Ramadan 2020 may have us all confined to our homes, but this has become an opportunity for a display of faith, a time for spiritual growth, and the creation of a community that embraces the true significance of Ramadan, even in the face of adversity  Despite social distancing, lockdowns, and quarantine, the most sacred month of the year in Islamic culture has brought with it a reminder of the unity of the human spirit. While abiding by social distancing guidelines, Muslims have taken to virtual gatherings to celebrate together as a community - staying together while staying apart.  Social distancing doesn’t have to mean isolation, and Muslims are teaching the world right now how to keep our spirits up and find inner peace and spiritual growth while demonstrating that the strength of a community is not limited by physical barriers.  Whether this means decorating their homes, digital gifting, connecting to the extended family through video conferencing, virtual iftars or participating in the many virtual spaces created by Islamic institutions and foundations, this has become a time to reaffirm faith and maintain a positive perspective.  While Ramadan 2020 is challenging the many personal traditions that have been established over time, being safe at home is paramount given the current health risks. One thing the COVID-19 pandemic has taught us is that while these disruptions have been inconvenient, heart-wrenching, and difficult to reconcile with, especially in times of celebration and during community events such as Ramadan, the repercussions of the alternative are much worse.  Generosity and community have been redefined, as the best way to serve each other and action good deeds has been to keep our distance; a personal sacrifice we’ve seen during this time. May the social distancing of Ramadan 2020 turn into a time of inner peace and contentment for everyone, the world over. Eid Mubarak and Happy Ramadan to all those celebrating! Earn free gold   Celebrating someone worth their weight in gold Kerry Stevenson interview with Jodi Stanton, CEO & Co-founder of SendGold Gold Price and the Ongoing Covid-19 Crisis, April 22 Update – Part 2 of 2  

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


SendGold

May 7, 2020

It’s a strange time for the world. When most bad things happen we, as humans, instinctively turn to one another - our friends, our families, and especially our mothers, for comfort and safety. The crisis we face today means that this is no longer an option for us. The best and only way to really protect yourself and those you love is to physically distance yourself from them at this time. This Mother’s Day is not about hugging our mothers or gathering together to celebrate them for all that they are. Whether you’re lucky enough to be with your family at this time or forced to stay away, this day reminds us of just one aspect of motherhood - putting your loved ones first, however difficult it may be. This Mother’s Day is about remembering that a mother’s love transcends all - time, space, and distance. The love and support you’ve always felt from her never falters, even if you can’t be near her. If you aren’t able to hug your mother or share a laugh in person, on this day, remember that the bond you share knows no bounds. Your mother is your first protector, supporter, and carer - and that’s just in the first nine months of your existence; before you were even aware of her, before she even set eyes on you. That’s just the beginning of all that it means to be a mother. Mothers are constantly adapting to meet the needs of their children. For most, there is never a point in time when a mother will refuse to help. Mothers raise their children but they don’t stop being mothers once their children are grown. The magnitude of belief, support, and unconditional love she is capable of is impossible to quantify and is taken for granted far too often. As far as jobs go, being a mother is a thankless one. Mother’s Day, however, reminds you to remember everything your mother has done for you. Today is an opportunity to think back on the little things you might have overlooked, to appreciate the difficulties and the joys of motherhood, and realise that everything that you are would be impossible without her. For everyone struggling or feeling lonely at this time, remember that despite having to practise social distancing, you don’t have to feel lonely or isolated. Reach out and talk to the people you love, especially your mom. Whether that means simply walking into the next room, video calling them or talking to them on the phone, do it. Happy Mother’s Day to all the moms out there! There’s not enough gold in the world to repay you for all you do, but it's certainly worth a shot. Buy or gift gold to add a little sparkle to the occasion. Earn free gold   Kerry Stevenson interview with Jodi Stanton, CEO & Co-founder of SendGold Gold Price and the Ongoing Covid-19 Crisis, April 22 Update – Part 2 of 2 SendGold Update – Ramping up Services as Gold Demand Skyrockets  

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


Mark Pey

June 30, 2020

With the collapse of banking provider Wirecard, it's worth revisiting the benefits of actually owning gold versus owning “paper gold” derivatives like ETFs.

Last week, the multi-billion dollar German banking provider, Wirecard, suddenly and dramatically collapsed and their CEO was arrested. The Wirecard board said, “There is a prevailing likelihood that the bank trust account balances in the amount of 1.9 billion euros (AUD $3.1 billion) do not exist."

In the Wirecard case, the trouble began to come to light when The Financial Times reported doubts about the complexity of the company’s accounting. The powerful top German regulator, BaFin, threatened to sue the FT for libel. Now, the top European regulator is investigating BaFin themselves and a class action lawsuit against Wirecard’s auditor, Ernst & Young, has been filed.

At SendGold, we have long held that the best way to own gold, whose function at the end of the day is to protect wealth through any and all financial market scenarios, is through individual outright ownership of physical gold metal, full stop. The reason we have structured our company this way is because complexity is the enemy of security, and we believe this is the simplest and most secure structure.

The structure of Wirecard was so complex that neither the regulator nor the auditor could reliably determine its ongoing soundness. We think customers should apply a similar "simplicity" (and transparency) acid test to owning paper gold derivatives like ETFs:

  • ETFs are shares. This means they are owned by the broker-dealer in what’s called “street name”, and the broker-dealer owes the value of the shares to customers. To repeat: The broker-dealer owns the shares.
  • Underneath this ETF share structure, there can be a number of subsidiary legal arrangements from different counterparts including “sponsors”, “marketing agents”, “authorised participants”, “custodians”, “sub-custodians”, and even “sub-sub custodians”.
  • Amazingly, in the case of the largest gold ETF GLD, these arrangements are not even covered by written contracts, monitoring, or insurance. We discussed the details of this in a prior blog post: https://www.sendgold.com/gold-etf-it-always-pays-to-read-the-fine-print/

We are all still figuring out what post-Covid-19 life will be like but a few trends seem to be emerging. People are seeking to simplify their lives and seek greater transparency from their financial providers and their relationships.

With financial and economic risks on the rise and headlines like Wirecard appearing, people want to protect what they have by knowing that they actually own it, no matter what the next news headline might reveal.

  NEW! Invest in Gold with your SMSF What’s going on with the price of gold in Australian dollars? Volt Bank’s Maria Loyez joins SendGold as Chief Customer Experience Advisor  

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


Mark Pey

May 27, 2020

The crisis and financial response have created a sense of uncertainty and gold market investors are not immune to this uncertainty. News headlines can seem to show the way forward but then can be contradicted by later headlines as the crisis situation continues to unfold.

This can create a mental tug-of-war as investors decide how to position their portfolios. For example, retail sales, including sales of gold jewellery, have shown a steep decline:

https://www.forbes.com/sites/anthonydemarco/2020/05/01/coronavirus-causes-1st-quarter-gold-jewelry-demand-to-plunged-39/#5649aa8719f4

In response, though, governments have pledged more than $6 trillion in new borrowing to stimulate demand. So falling demand for gold jewellery has been outweighed so far by investors demanding currencies like gold that cannot simply be printed in unlimited quantities:

https://www.marketwatch.com/story/gold-as-an-investment-is-made-for-times-like-these-2020-05-05

Shares and bonds versus gold

Some investments that compete with gold, like shares, have staged a rebound from their lows. But the real-world companies underlying those shares have taken historic hits to both their earnings and their balance sheets, casting doubts as to whether their share price performance can continue. (Absent, of course, even more money printing, with the same effect as noted in the previous paragraph):

https://www.wsj.com/articles/why-is-the-stock-market-rallying-when-the-economy-is-so-bad-11588974327

And on the bond front, would you agree to loan someone $1000 at no interest, and after two years receive just $980 back? This is the position government bond investors in Europe and Japan are already in. With the U.K. now joining the NIRP (Negative Interest Rate Policy) Club and the likelihood that the U.S. is to follow shortly, it’s no wonder that capital preservation investors are seeking the certainty of gold. It also may pay no interest but at least they know their investment is secure, away from prying government hands:

https://uk.finance.yahoo.com/news/coronavirus-covid-19-uk-government-negative-yield-bond-gilt-144510468.html

The four horsemen

On the “safe haven” front we have all four of the horsemen of the apocalypse (war, pandemic, famine, and death) galloping around, so it’s no surprise that the gold price continues to be supported by a safe haven bid. With the world’s two largest economies gearing up for an epic battle over trade, cyber, Covid-19, and many other things, protecting wealth from worst-case scenarios is top of mind for investors of all sizes.

Uncertainty need not equal inaction

 We think the crisis so far has been a time for people and gold market investors to return to thinking about the fundamentals. The confluence of monetary, investment, and economic fundamentals continues to point to further uncertainty. But it’s precisely in times like these that gold comes to the rescue of investors and savers trying to protect what’s important to them.

  Kerry Stevenson interview with Jodi Stanton, CEO & Co-founder of SendGold Gold Price and the Ongoing Covid-19 Crisis, April 22 Update – Part 2 of 2 SendGold Update – Ramping up Services as Gold Demand Skyrockets  

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


SendGold

May 21, 2020

Ramadan 2020 will certainly go down in history. For the first time, during this holy month, we can no longer open our homes, families can’t come together in quite the same way, and pilgrimages can’t be embarked on. Ramadan is about faith, prayer, fasting, reflection, and community. It is the most important month in the Muslim calendar and holds significant meaning for all those who celebrate it. It’s such a vital part of the year that its personal and spiritual significance cannot be overstated.  Ramadan is characterised by the generosity that is shared, with many gathering to break fast and inviting guests over for iftar. During Ramadan 2020, these practices are unsafe and instead, we have had to turn inwards, to our homes and ourselves, to mark this holy month. In spite of these circumstances, however, Muslims around the world haven’t let COVID-19 get them down. Ramadan 2020 may have us all confined to our homes, but this has become an opportunity for a display of faith, a time for spiritual growth, and the creation of a community that embraces the true significance of Ramadan, even in the face of adversity  Despite social distancing, lockdowns, and quarantine, the most sacred month of the year in Islamic culture has brought with it a reminder of the unity of the human spirit. While abiding by social distancing guidelines, Muslims have taken to virtual gatherings to celebrate together as a community - staying together while staying apart.  Social distancing doesn’t have to mean isolation, and Muslims are teaching the world right now how to keep our spirits up and find inner peace and spiritual growth while demonstrating that the strength of a community is not limited by physical barriers.  Whether this means decorating their homes, digital gifting, connecting to the extended family through video conferencing, virtual iftars or participating in the many virtual spaces created by Islamic institutions and foundations, this has become a time to reaffirm faith and maintain a positive perspective.  While Ramadan 2020 is challenging the many personal traditions that have been established over time, being safe at home is paramount given the current health risks. One thing the COVID-19 pandemic has taught us is that while these disruptions have been inconvenient, heart-wrenching, and difficult to reconcile with, especially in times of celebration and during community events such as Ramadan, the repercussions of the alternative are much worse.  Generosity and community have been redefined, as the best way to serve each other and action good deeds has been to keep our distance; a personal sacrifice we’ve seen during this time. May the social distancing of Ramadan 2020 turn into a time of inner peace and contentment for everyone, the world over. Eid Mubarak and Happy Ramadan to all those celebrating! Earn free gold   Celebrating someone worth their weight in gold Kerry Stevenson interview with Jodi Stanton, CEO & Co-founder of SendGold Gold Price and the Ongoing Covid-19 Crisis, April 22 Update – Part 2 of 2  

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


SendGold

May 7, 2020

It’s a strange time for the world. When most bad things happen we, as humans, instinctively turn to one another - our friends, our families, and especially our mothers, for comfort and safety. The crisis we face today means that this is no longer an option for us. The best and only way to really protect yourself and those you love is to physically distance yourself from them at this time. This Mother’s Day is not about hugging our mothers or gathering together to celebrate them for all that they are. Whether you’re lucky enough to be with your family at this time or forced to stay away, this day reminds us of just one aspect of motherhood - putting your loved ones first, however difficult it may be. This Mother’s Day is about remembering that a mother’s love transcends all - time, space, and distance. The love and support you’ve always felt from her never falters, even if you can’t be near her. If you aren’t able to hug your mother or share a laugh in person, on this day, remember that the bond you share knows no bounds. Your mother is your first protector, supporter, and carer - and that’s just in the first nine months of your existence; before you were even aware of her, before she even set eyes on you. That’s just the beginning of all that it means to be a mother. Mothers are constantly adapting to meet the needs of their children. For most, there is never a point in time when a mother will refuse to help. Mothers raise their children but they don’t stop being mothers once their children are grown. The magnitude of belief, support, and unconditional love she is capable of is impossible to quantify and is taken for granted far too often. As far as jobs go, being a mother is a thankless one. Mother’s Day, however, reminds you to remember everything your mother has done for you. Today is an opportunity to think back on the little things you might have overlooked, to appreciate the difficulties and the joys of motherhood, and realise that everything that you are would be impossible without her. For everyone struggling or feeling lonely at this time, remember that despite having to practise social distancing, you don’t have to feel lonely or isolated. Reach out and talk to the people you love, especially your mom. Whether that means simply walking into the next room, video calling them or talking to them on the phone, do it. Happy Mother’s Day to all the moms out there! There’s not enough gold in the world to repay you for all you do, but it's certainly worth a shot. Buy or gift gold to add a little sparkle to the occasion. Earn free gold   Kerry Stevenson interview with Jodi Stanton, CEO & Co-founder of SendGold Gold Price and the Ongoing Covid-19 Crisis, April 22 Update – Part 2 of 2 SendGold Update – Ramping up Services as Gold Demand Skyrockets  

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


SendGold

April 23, 2020

While you may not be able to celebrate Akshaya Tritiya with its traditional pomp and festivity, it’s important to maintain yearly customs and traditions – especially with a gift of gold. Whether you’re treating yourself or want to make a timeless offering to loved ones, the SendGold app helps you celebrate this occasion virtually with digital gold; we even have exciting gift wrap options. Enjoy easily accessible and transferable digital gold investments with instant liquidity in India for as low as 100 Rupees. Buy and gift gold   Gold Price and the Ongoing Covid-19 Crisis, April 22 Update – Part 2 of 2 SendGold Update – Ramping up Services as Gold Demand Skyrockets Gold and the Ongoing Covid-19 Crisis, March 24 Update – Part 1 of 2  

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


Mark Pey

June 30, 2020

With the collapse of banking provider Wirecard, it's worth revisiting the benefits of actually owning gold versus owning “paper gold” derivatives like ETFs.

Last week, the multi-billion dollar German banking provider, Wirecard, suddenly and dramatically collapsed and their CEO was arrested. The Wirecard board said, “There is a prevailing likelihood that the bank trust account balances in the amount of 1.9 billion euros (AUD $3.1 billion) do not exist."

In the Wirecard case, the trouble began to come to light when The Financial Times reported doubts about the complexity of the company’s accounting. The powerful top German regulator, BaFin, threatened to sue the FT for libel. Now, the top European regulator is investigating BaFin themselves and a class action lawsuit against Wirecard’s auditor, Ernst & Young, has been filed.

At SendGold, we have long held that the best way to own gold, whose function at the end of the day is to protect wealth through any and all financial market scenarios, is through individual outright ownership of physical gold metal, full stop. The reason we have structured our company this way is because complexity is the enemy of security, and we believe this is the simplest and most secure structure.

The structure of Wirecard was so complex that neither the regulator nor the auditor could reliably determine its ongoing soundness. We think customers should apply a similar "simplicity" (and transparency) acid test to owning paper gold derivatives like ETFs:

  • ETFs are shares. This means they are owned by the broker-dealer in what’s called “street name”, and the broker-dealer owes the value of the shares to customers. To repeat: The broker-dealer owns the shares.
  • Underneath this ETF share structure, there can be a number of subsidiary legal arrangements from different counterparts including “sponsors”, “marketing agents”, “authorised participants”, “custodians”, “sub-custodians”, and even “sub-sub custodians”.
  • Amazingly, in the case of the largest gold ETF GLD, these arrangements are not even covered by written contracts, monitoring, or insurance. We discussed the details of this in a prior blog post: https://www.sendgold.com/gold-etf-it-always-pays-to-read-the-fine-print/

We are all still figuring out what post-Covid-19 life will be like but a few trends seem to be emerging. People are seeking to simplify their lives and seek greater transparency from their financial providers and their relationships.

With financial and economic risks on the rise and headlines like Wirecard appearing, people want to protect what they have by knowing that they actually own it, no matter what the next news headline might reveal.

  NEW! Invest in Gold with your SMSF What’s going on with the price of gold in Australian dollars? Volt Bank’s Maria Loyez joins SendGold as Chief Customer Experience Advisor  

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


Mark Pey

May 27, 2020

The crisis and financial response have created a sense of uncertainty and gold market investors are not immune to this uncertainty. News headlines can seem to show the way forward but then can be contradicted by later headlines as the crisis situation continues to unfold.

This can create a mental tug-of-war as investors decide how to position their portfolios. For example, retail sales, including sales of gold jewellery, have shown a steep decline:

https://www.forbes.com/sites/anthonydemarco/2020/05/01/coronavirus-causes-1st-quarter-gold-jewelry-demand-to-plunged-39/#5649aa8719f4

In response, though, governments have pledged more than $6 trillion in new borrowing to stimulate demand. So falling demand for gold jewellery has been outweighed so far by investors demanding currencies like gold that cannot simply be printed in unlimited quantities:

https://www.marketwatch.com/story/gold-as-an-investment-is-made-for-times-like-these-2020-05-05

Shares and bonds versus gold

Some investments that compete with gold, like shares, have staged a rebound from their lows. But the real-world companies underlying those shares have taken historic hits to both their earnings and their balance sheets, casting doubts as to whether their share price performance can continue. (Absent, of course, even more money printing, with the same effect as noted in the previous paragraph):

https://www.wsj.com/articles/why-is-the-stock-market-rallying-when-the-economy-is-so-bad-11588974327

And on the bond front, would you agree to loan someone $1000 at no interest, and after two years receive just $980 back? This is the position government bond investors in Europe and Japan are already in. With the U.K. now joining the NIRP (Negative Interest Rate Policy) Club and the likelihood that the U.S. is to follow shortly, it’s no wonder that capital preservation investors are seeking the certainty of gold. It also may pay no interest but at least they know their investment is secure, away from prying government hands:

https://uk.finance.yahoo.com/news/coronavirus-covid-19-uk-government-negative-yield-bond-gilt-144510468.html

The four horsemen

On the “safe haven” front we have all four of the horsemen of the apocalypse (war, pandemic, famine, and death) galloping around, so it’s no surprise that the gold price continues to be supported by a safe haven bid. With the world’s two largest economies gearing up for an epic battle over trade, cyber, Covid-19, and many other things, protecting wealth from worst-case scenarios is top of mind for investors of all sizes.

Uncertainty need not equal inaction

 We think the crisis so far has been a time for people and gold market investors to return to thinking about the fundamentals. The confluence of monetary, investment, and economic fundamentals continues to point to further uncertainty. But it’s precisely in times like these that gold comes to the rescue of investors and savers trying to protect what’s important to them.

  Kerry Stevenson interview with Jodi Stanton, CEO & Co-founder of SendGold Gold Price and the Ongoing Covid-19 Crisis, April 22 Update – Part 2 of 2 SendGold Update – Ramping up Services as Gold Demand Skyrockets  

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


SendGold

May 21, 2020

Ramadan 2020 will certainly go down in history. For the first time, during this holy month, we can no longer open our homes, families can’t come together in quite the same way, and pilgrimages can’t be embarked on. Ramadan is about faith, prayer, fasting, reflection, and community. It is the most important month in the Muslim calendar and holds significant meaning for all those who celebrate it. It’s such a vital part of the year that its personal and spiritual significance cannot be overstated.  Ramadan is characterised by the generosity that is shared, with many gathering to break fast and inviting guests over for iftar. During Ramadan 2020, these practices are unsafe and instead, we have had to turn inwards, to our homes and ourselves, to mark this holy month. In spite of these circumstances, however, Muslims around the world haven’t let COVID-19 get them down. Ramadan 2020 may have us all confined to our homes, but this has become an opportunity for a display of faith, a time for spiritual growth, and the creation of a community that embraces the true significance of Ramadan, even in the face of adversity  Despite social distancing, lockdowns, and quarantine, the most sacred month of the year in Islamic culture has brought with it a reminder of the unity of the human spirit. While abiding by social distancing guidelines, Muslims have taken to virtual gatherings to celebrate together as a community - staying together while staying apart.  Social distancing doesn’t have to mean isolation, and Muslims are teaching the world right now how to keep our spirits up and find inner peace and spiritual growth while demonstrating that the strength of a community is not limited by physical barriers.  Whether this means decorating their homes, digital gifting, connecting to the extended family through video conferencing, virtual iftars or participating in the many virtual spaces created by Islamic institutions and foundations, this has become a time to reaffirm faith and maintain a positive perspective.  While Ramadan 2020 is challenging the many personal traditions that have been established over time, being safe at home is paramount given the current health risks. One thing the COVID-19 pandemic has taught us is that while these disruptions have been inconvenient, heart-wrenching, and difficult to reconcile with, especially in times of celebration and during community events such as Ramadan, the repercussions of the alternative are much worse.  Generosity and community have been redefined, as the best way to serve each other and action good deeds has been to keep our distance; a personal sacrifice we’ve seen during this time. May the social distancing of Ramadan 2020 turn into a time of inner peace and contentment for everyone, the world over. Eid Mubarak and Happy Ramadan to all those celebrating! Earn free gold   Celebrating someone worth their weight in gold Kerry Stevenson interview with Jodi Stanton, CEO & Co-founder of SendGold Gold Price and the Ongoing Covid-19 Crisis, April 22 Update – Part 2 of 2  

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


SendGold

May 7, 2020

It’s a strange time for the world. When most bad things happen we, as humans, instinctively turn to one another - our friends, our families, and especially our mothers, for comfort and safety. The crisis we face today means that this is no longer an option for us. The best and only way to really protect yourself and those you love is to physically distance yourself from them at this time. This Mother’s Day is not about hugging our mothers or gathering together to celebrate them for all that they are. Whether you’re lucky enough to be with your family at this time or forced to stay away, this day reminds us of just one aspect of motherhood - putting your loved ones first, however difficult it may be. This Mother’s Day is about remembering that a mother’s love transcends all - time, space, and distance. The love and support you’ve always felt from her never falters, even if you can’t be near her. If you aren’t able to hug your mother or share a laugh in person, on this day, remember that the bond you share knows no bounds. Your mother is your first protector, supporter, and carer - and that’s just in the first nine months of your existence; before you were even aware of her, before she even set eyes on you. That’s just the beginning of all that it means to be a mother. Mothers are constantly adapting to meet the needs of their children. For most, there is never a point in time when a mother will refuse to help. Mothers raise their children but they don’t stop being mothers once their children are grown. The magnitude of belief, support, and unconditional love she is capable of is impossible to quantify and is taken for granted far too often. As far as jobs go, being a mother is a thankless one. Mother’s Day, however, reminds you to remember everything your mother has done for you. Today is an opportunity to think back on the little things you might have overlooked, to appreciate the difficulties and the joys of motherhood, and realise that everything that you are would be impossible without her. For everyone struggling or feeling lonely at this time, remember that despite having to practise social distancing, you don’t have to feel lonely or isolated. Reach out and talk to the people you love, especially your mom. Whether that means simply walking into the next room, video calling them or talking to them on the phone, do it. Happy Mother’s Day to all the moms out there! There’s not enough gold in the world to repay you for all you do, but it's certainly worth a shot. Buy or gift gold to add a little sparkle to the occasion. Earn free gold   Kerry Stevenson interview with Jodi Stanton, CEO & Co-founder of SendGold Gold Price and the Ongoing Covid-19 Crisis, April 22 Update – Part 2 of 2 SendGold Update – Ramping up Services as Gold Demand Skyrockets  

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


SendGold

April 23, 2020

While you may not be able to celebrate Akshaya Tritiya with its traditional pomp and festivity, it’s important to maintain yearly customs and traditions – especially with a gift of gold. Whether you’re treating yourself or want to make a timeless offering to loved ones, the SendGold app helps you celebrate this occasion virtually with digital gold; we even have exciting gift wrap options. Enjoy easily accessible and transferable digital gold investments with instant liquidity in India for as low as 100 Rupees. Buy and gift gold   Gold Price and the Ongoing Covid-19 Crisis, April 22 Update – Part 2 of 2 SendGold Update – Ramping up Services as Gold Demand Skyrockets Gold and the Ongoing Covid-19 Crisis, March 24 Update – Part 1 of 2  

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


Mark Pey

April 22, 2020

Now that the economic fallout of Covid-19 is becoming a little clearer, we can discuss the possible effects on investing and on gold price in particular.

Each of the factors discussed below (and in Part 1) - gold’s performance during the last crisis, the further selloff of lower-quality assets, the potential for another sovereign debt crisis, and the potential for higher inflation when stimulus payments arrive – all argue in our view for a steady and continued rise in the price of gold.

Gold was already a top-performing investment

Prior to the crisis (and prior to the recent run-up in the price of gold) Price Waterhouse Coopers prepared a report for the world’s largest investors - the so-called “sovereign wealth funds” from countries like Singapore and Norway.

In that report, they pointed out that gold had already outperformed the top two major asset classes (shares and bonds) over the previous 10-year and 20-year time periods: https://www.pwc.com/gx/en/industries/sovereign-wealth-investment-funds/publications/alternative-assets-for-sovereign-wealth-funds.html

Gold tops the charts so far in 2020

So going into the Covid-19 scare, gold was already one of the world’s top-performing investment asset classes.

And so far this year gold has added even more to that winning form, outperforming everything from shares to bonds to commodities to Bitcoin. The chart above shows the year-to-date returns for 2020 (through 10 April). We believe there is a high likelihood for that outperformance to continue, for a number of reasons.

Covid-19 means governments must print the money people need

Most governments are putting through very large stimulus packages. In the U.S. the stimulus already exceeds USD $2 trillion.

But J.P.Morgan's chief economist Michael Feroli noted, "In response to the Covid-19 crisis, the U. S. Federal Reserve Bank has effectively shifted from lender of last resort for banks, to a commercial banker of last resort for the broader economy." 

This change means there is a heightened risk of a “sovereign debt crisis”, where the government itself cannot pay its bills and has to default.

It’s worth recalling that sovereign debt crises only resolve in one of two ways: either government bond investors take big losses (or get wiped out altogether) or inflation or hyper-inflation debases the currency (makes it less valuable) to the point where the size of the remaining debt is manageable.

And the lesson of the last major country sovereign debt crisis is worth noting: the world’s six biggest economies’ currencies lost between 75-95% of their value against gold over the course of less than a decade.

And what happens when the stimulus payments start arriving?

If we look ahead a few weeks or months to a time when the financial market selloffs have abated somewhat and stimulus payments begin arriving, Deutsche Bank recently made an interesting argument. They believe that this will be inflationary, and possibly even hyper-inflationary:

"This is because policymakers appear to be attempting to shift demand back to where it was a couple of months ago, at the same time as holding supply fixed. To put it another way, if the government tries to keep spending at levels before lockdowns began, while at the same time keeping lockdowns in place, there will be simply more money chasing after significantly fewer goods and services. The result of this will be inflation, and a lot of it.” 

A return of inflation would be a large positive for the price of gold.

Gold price target: USD $3000?

Today Bank of America wrote in a research note to their clients, "As the ultimate store of value, gold is a reflection of market movements across all major financial and physical assets… and the gold market has further room to run, in our view.”

The Bank of America research note continues: "Now, with the Fed committing to do whatever it takes to prevent widespread bankruptcies across the US, Congress injecting a USD $2 trillion fiscal stimulus plan, and economic growth on standstill until there is a cure or a vaccine, inflation could rise even if GDP does not. This backdrop should prove very positive for gold”.

"We have been long-term gold bulls, maintaining our constructive forecast even through the recent volatility. Hence, we are marking-to-market expectations, while at the same time anticipating further upside. Thus, we increase our 18-month gold target price from USD $2,000 to USD $3,000/oz.”

At today’s exchange rate that would mean a gold price of AUD $4,761 per ounce, up from today’s price of approximately AUD $2,700 per ounce.

Conclusion

So we reiterate our opinion from our 2020 Gold Outlook: Accumulate. SendGold makes it easy.

  Happy Earth Day from SendGold SendGold Update – Ramping up Services as Gold Demand Skyrockets Gold and the Ongoing Covid-19 Crisis, March 24 Update – Part 1 of 2

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


Mark Pey

June 30, 2020

With the collapse of banking provider Wirecard, it's worth revisiting the benefits of actually owning gold versus owning “paper gold” derivatives like ETFs.

Last week, the multi-billion dollar German banking provider, Wirecard, suddenly and dramatically collapsed and their CEO was arrested. The Wirecard board said, “There is a prevailing likelihood that the bank trust account balances in the amount of 1.9 billion euros (AUD $3.1 billion) do not exist."

In the Wirecard case, the trouble began to come to light when The Financial Times reported doubts about the complexity of the company’s accounting. The powerful top German regulator, BaFin, threatened to sue the FT for libel. Now, the top European regulator is investigating BaFin themselves and a class action lawsuit against Wirecard’s auditor, Ernst & Young, has been filed.

At SendGold, we have long held that the best way to own gold, whose function at the end of the day is to protect wealth through any and all financial market scenarios, is through individual outright ownership of physical gold metal, full stop. The reason we have structured our company this way is because complexity is the enemy of security, and we believe this is the simplest and most secure structure.

The structure of Wirecard was so complex that neither the regulator nor the auditor could reliably determine its ongoing soundness. We think customers should apply a similar "simplicity" (and transparency) acid test to owning paper gold derivatives like ETFs:

  • ETFs are shares. This means they are owned by the broker-dealer in what’s called “street name”, and the broker-dealer owes the value of the shares to customers. To repeat: The broker-dealer owns the shares.
  • Underneath this ETF share structure, there can be a number of subsidiary legal arrangements from different counterparts including “sponsors”, “marketing agents”, “authorised participants”, “custodians”, “sub-custodians”, and even “sub-sub custodians”.
  • Amazingly, in the case of the largest gold ETF GLD, these arrangements are not even covered by written contracts, monitoring, or insurance. We discussed the details of this in a prior blog post: https://www.sendgold.com/gold-etf-it-always-pays-to-read-the-fine-print/

We are all still figuring out what post-Covid-19 life will be like but a few trends seem to be emerging. People are seeking to simplify their lives and seek greater transparency from their financial providers and their relationships.

With financial and economic risks on the rise and headlines like Wirecard appearing, people want to protect what they have by knowing that they actually own it, no matter what the next news headline might reveal.

  NEW! Invest in Gold with your SMSF What’s going on with the price of gold in Australian dollars? Volt Bank’s Maria Loyez joins SendGold as Chief Customer Experience Advisor  

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


Mark Pey

May 27, 2020

The crisis and financial response have created a sense of uncertainty and gold market investors are not immune to this uncertainty. News headlines can seem to show the way forward but then can be contradicted by later headlines as the crisis situation continues to unfold.

This can create a mental tug-of-war as investors decide how to position their portfolios. For example, retail sales, including sales of gold jewellery, have shown a steep decline:

https://www.forbes.com/sites/anthonydemarco/2020/05/01/coronavirus-causes-1st-quarter-gold-jewelry-demand-to-plunged-39/#5649aa8719f4

In response, though, governments have pledged more than $6 trillion in new borrowing to stimulate demand. So falling demand for gold jewellery has been outweighed so far by investors demanding currencies like gold that cannot simply be printed in unlimited quantities:

https://www.marketwatch.com/story/gold-as-an-investment-is-made-for-times-like-these-2020-05-05

Shares and bonds versus gold

Some investments that compete with gold, like shares, have staged a rebound from their lows. But the real-world companies underlying those shares have taken historic hits to both their earnings and their balance sheets, casting doubts as to whether their share price performance can continue. (Absent, of course, even more money printing, with the same effect as noted in the previous paragraph):

https://www.wsj.com/articles/why-is-the-stock-market-rallying-when-the-economy-is-so-bad-11588974327

And on the bond front, would you agree to loan someone $1000 at no interest, and after two years receive just $980 back? This is the position government bond investors in Europe and Japan are already in. With the U.K. now joining the NIRP (Negative Interest Rate Policy) Club and the likelihood that the U.S. is to follow shortly, it’s no wonder that capital preservation investors are seeking the certainty of gold. It also may pay no interest but at least they know their investment is secure, away from prying government hands:

https://uk.finance.yahoo.com/news/coronavirus-covid-19-uk-government-negative-yield-bond-gilt-144510468.html

The four horsemen

On the “safe haven” front we have all four of the horsemen of the apocalypse (war, pandemic, famine, and death) galloping around, so it’s no surprise that the gold price continues to be supported by a safe haven bid. With the world’s two largest economies gearing up for an epic battle over trade, cyber, Covid-19, and many other things, protecting wealth from worst-case scenarios is top of mind for investors of all sizes.

Uncertainty need not equal inaction

 We think the crisis so far has been a time for people and gold market investors to return to thinking about the fundamentals. The confluence of monetary, investment, and economic fundamentals continues to point to further uncertainty. But it’s precisely in times like these that gold comes to the rescue of investors and savers trying to protect what’s important to them.

  Kerry Stevenson interview with Jodi Stanton, CEO & Co-founder of SendGold Gold Price and the Ongoing Covid-19 Crisis, April 22 Update – Part 2 of 2 SendGold Update – Ramping up Services as Gold Demand Skyrockets  

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


SendGold

May 21, 2020

Ramadan 2020 will certainly go down in history. For the first time, during this holy month, we can no longer open our homes, families can’t come together in quite the same way, and pilgrimages can’t be embarked on. Ramadan is about faith, prayer, fasting, reflection, and community. It is the most important month in the Muslim calendar and holds significant meaning for all those who celebrate it. It’s such a vital part of the year that its personal and spiritual significance cannot be overstated.  Ramadan is characterised by the generosity that is shared, with many gathering to break fast and inviting guests over for iftar. During Ramadan 2020, these practices are unsafe and instead, we have had to turn inwards, to our homes and ourselves, to mark this holy month. In spite of these circumstances, however, Muslims around the world haven’t let COVID-19 get them down. Ramadan 2020 may have us all confined to our homes, but this has become an opportunity for a display of faith, a time for spiritual growth, and the creation of a community that embraces the true significance of Ramadan, even in the face of adversity  Despite social distancing, lockdowns, and quarantine, the most sacred month of the year in Islamic culture has brought with it a reminder of the unity of the human spirit. While abiding by social distancing guidelines, Muslims have taken to virtual gatherings to celebrate together as a community - staying together while staying apart.  Social distancing doesn’t have to mean isolation, and Muslims are teaching the world right now how to keep our spirits up and find inner peace and spiritual growth while demonstrating that the strength of a community is not limited by physical barriers.  Whether this means decorating their homes, digital gifting, connecting to the extended family through video conferencing, virtual iftars or participating in the many virtual spaces created by Islamic institutions and foundations, this has become a time to reaffirm faith and maintain a positive perspective.  While Ramadan 2020 is challenging the many personal traditions that have been established over time, being safe at home is paramount given the current health risks. One thing the COVID-19 pandemic has taught us is that while these disruptions have been inconvenient, heart-wrenching, and difficult to reconcile with, especially in times of celebration and during community events such as Ramadan, the repercussions of the alternative are much worse.  Generosity and community have been redefined, as the best way to serve each other and action good deeds has been to keep our distance; a personal sacrifice we’ve seen during this time. May the social distancing of Ramadan 2020 turn into a time of inner peace and contentment for everyone, the world over. Eid Mubarak and Happy Ramadan to all those celebrating! Earn free gold   Celebrating someone worth their weight in gold Kerry Stevenson interview with Jodi Stanton, CEO & Co-founder of SendGold Gold Price and the Ongoing Covid-19 Crisis, April 22 Update – Part 2 of 2  

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


SendGold

May 7, 2020

It’s a strange time for the world. When most bad things happen we, as humans, instinctively turn to one another - our friends, our families, and especially our mothers, for comfort and safety. The crisis we face today means that this is no longer an option for us. The best and only way to really protect yourself and those you love is to physically distance yourself from them at this time. This Mother’s Day is not about hugging our mothers or gathering together to celebrate them for all that they are. Whether you’re lucky enough to be with your family at this time or forced to stay away, this day reminds us of just one aspect of motherhood - putting your loved ones first, however difficult it may be. This Mother’s Day is about remembering that a mother’s love transcends all - time, space, and distance. The love and support you’ve always felt from her never falters, even if you can’t be near her. If you aren’t able to hug your mother or share a laugh in person, on this day, remember that the bond you share knows no bounds. Your mother is your first protector, supporter, and carer - and that’s just in the first nine months of your existence; before you were even aware of her, before she even set eyes on you. That’s just the beginning of all that it means to be a mother. Mothers are constantly adapting to meet the needs of their children. For most, there is never a point in time when a mother will refuse to help. Mothers raise their children but they don’t stop being mothers once their children are grown. The magnitude of belief, support, and unconditional love she is capable of is impossible to quantify and is taken for granted far too often. As far as jobs go, being a mother is a thankless one. Mother’s Day, however, reminds you to remember everything your mother has done for you. Today is an opportunity to think back on the little things you might have overlooked, to appreciate the difficulties and the joys of motherhood, and realise that everything that you are would be impossible without her. For everyone struggling or feeling lonely at this time, remember that despite having to practise social distancing, you don’t have to feel lonely or isolated. Reach out and talk to the people you love, especially your mom. Whether that means simply walking into the next room, video calling them or talking to them on the phone, do it. Happy Mother’s Day to all the moms out there! There’s not enough gold in the world to repay you for all you do, but it's certainly worth a shot. Buy or gift gold to add a little sparkle to the occasion. Earn free gold   Kerry Stevenson interview with Jodi Stanton, CEO & Co-founder of SendGold Gold Price and the Ongoing Covid-19 Crisis, April 22 Update – Part 2 of 2 SendGold Update – Ramping up Services as Gold Demand Skyrockets  

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


SendGold

April 23, 2020

While you may not be able to celebrate Akshaya Tritiya with its traditional pomp and festivity, it’s important to maintain yearly customs and traditions – especially with a gift of gold. Whether you’re treating yourself or want to make a timeless offering to loved ones, the SendGold app helps you celebrate this occasion virtually with digital gold; we even have exciting gift wrap options. Enjoy easily accessible and transferable digital gold investments with instant liquidity in India for as low as 100 Rupees. Buy and gift gold   Gold Price and the Ongoing Covid-19 Crisis, April 22 Update – Part 2 of 2 SendGold Update – Ramping up Services as Gold Demand Skyrockets Gold and the Ongoing Covid-19 Crisis, March 24 Update – Part 1 of 2  

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