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


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


SendGold

August 27, 2019

This week both J.P. Morgan and Bank of America advised their biggest clients to buy gold to protect their wealth in worsening economic conditions.

J.P. Morgan’s Private Clients

This week J.P. Morgan’s Private Client division released a recommendation to buy gold to their biggest institutional clients. Their recommendation echoes what we at SendGold have been discussing since our inception:

We believe the U.S. dollar could become vulnerable to a loss of value relative to a more diversified basket of currencies, including gold.

J.P. Morgan holds USD $2.089 trillion in assets for these customers and they recommended they should now invest 5% of their portfolios into gold:

Bank of America Investment Recommendation

Echoing J.P. Morgan, today Bank of America issued a research note to its largest investment clients. In it they stated the unthinkable: that the extraordinary central bank actions we’ve seen since 2008 (so-called “quantitative easing”), might fail altogether:

"The risk of quantitative failure, which was not a concern in 2008, makes gold an attractive asset. "

The B of A report includes the following chart comparing the gold bull market following 2008 with conditions today. The implication is that the current gold price rally still has a long way to run:

In our long experience in markets, investment recommendations are only rarely this definitive. But more importantly, the fundamental reason to own gold - as an independent hedge against financial market uncertainty - is now stronger than ever.

 

Download our new App now and BUY GOLD WITH NO TRANSACTION FEES through midnight AEST 1 September 2019.

  •  


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


SendGold

August 27, 2019

This week both J.P. Morgan and Bank of America advised their biggest clients to buy gold to protect their wealth in worsening economic conditions.

J.P. Morgan’s Private Clients

This week J.P. Morgan’s Private Client division released a recommendation to buy gold to their biggest institutional clients. Their recommendation echoes what we at SendGold have been discussing since our inception:

We believe the U.S. dollar could become vulnerable to a loss of value relative to a more diversified basket of currencies, including gold.

J.P. Morgan holds USD $2.089 trillion in assets for these customers and they recommended they should now invest 5% of their portfolios into gold:

Bank of America Investment Recommendation

Echoing J.P. Morgan, today Bank of America issued a research note to its largest investment clients. In it they stated the unthinkable: that the extraordinary central bank actions we’ve seen since 2008 (so-called “quantitative easing”), might fail altogether:

"The risk of quantitative failure, which was not a concern in 2008, makes gold an attractive asset. "

The B of A report includes the following chart comparing the gold bull market following 2008 with conditions today. The implication is that the current gold price rally still has a long way to run:

In our long experience in markets, investment recommendations are only rarely this definitive. But more importantly, the fundamental reason to own gold - as an independent hedge against financial market uncertainty - is now stronger than ever.

 

Download our new App now and BUY GOLD WITH NO TRANSACTION FEES through midnight AEST 1 September 2019.

  •  


SendGold

November 22, 2017

Let’s talk Ownership & Security. With many investments, intermediaries exist between you and actual ownership of the underlying asset. In almost every instance when you buy shares, bonds, or funds from a broker, for example, your name is not actually on the share or bond certificate. As FINRA says on their website, “When an investor opens an investment account, the stocks and bonds he or she buys are registered in the issuer’s books as belonging to the brokerage firm”. With SendGold by contrast you obtain outright individual legal title to your investment asset. In other words, there’s no confusion or ambiguity. It’s yours. All SendGold gold is at least 99.95% pure, is audited by Bureau Veritas, held in Australian vaults operated by Brink’s Global Services, and insured by Lloyd’s of London. Bureau Veritas has been in the business of protecting investor assets since 1828. Brink’s has been in the custody business since 1859. Lloyd’s of London has been in the insurance business since 1686. During the GFC many investment promises turned out not to be worth the paper they were written on. With SendGold you get physical gold that you own, safeguarded by some of the oldest companies in the business, not just paper promises for assets that are owned by somebody else. For more information visit ‘how it works‘ or our ‘terms of use‘ pages.