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

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

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

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.