gold news

 hi this is mike maloney and i've got ronnie stufferle uh with me again from incrementum uh and a continuing video uh so this time uh we're starting on page 22 of his in goldwe trust report from incrementum ag and uh this one is uh gold priced in different currencies around the world and what i love about this is you know you can go there there's a site uh nick laird of gold charts r us has a page where he's got every world currency uh gold's performance measured in every world currency and what you'll

find is that without with with very few exceptions gold is setting record highs in almost all currencies on the planet but ronnie how are you doing very well thank you very much mike how are you good so let's uh talk about this chart you put in here because this is the first time i've seen anybody uh create a composite of all of those other currencies compared to gold and it really simplifies it you don't have to look at 100 different charts you get you've boiled down 100 different charts

into one and i love this uh actually it's not a hundred different charts you've picked more major currencies so you have uh one two three four five six seven eight you've got eight of the world's major currencies the euro the british pound the aussie dollar the canadian dollar the chinese yuan japanese yen this uh swiss franc and is what's inr is that the indian that's the indian rupee yes yes and so uh you've got those currencies and you've just taken you've put them together and taken their

average so this isn't uh measuring the currencies that are a really small portion of the currency supply between these currencies this is pretty much close to half the world's currency supply you're talking about a major portion of the world's currency supply and gold is setting record highs in well over half the world it's only in the united states the gold is not setting record highs basically tell me uh about this chart how you compiled it and drill down into what it means to you

well for us it is um it is important to to to analyze the the market breadth of of of of gold so for some reason people um only focus on the dollar price of gold while for us over here it's more important to follow the euro price of gold or the swiss franc price of gold while for the bride in india they don't care about the dollar price of gold they care about gold in indian rupee um for you know chinese people they don't care about the dollar price of gold they want to see it in the in the chinese

yuan and so on so we said first of all gold is you know it's traded 24 7. it is something special in in in every society in every culture in every religion so i think it's kind of odd to just analyze the price of gold in dollar terms um because people tend to forget that um roughly two-thirds of of gold demand of physical gold demand is nowadays coming from emerging markets so i think we tend to think you know western markets to make the gold price but actually uh emerging market uh consumption is now really

um a very very important driver but having sorry go ahead yeah yeah but but but having a look at gold in different currencies just gives you more information and and and i think first of all we've got this world gold price so um gold trade um gold basically shown in a trade weighted uh us dollar um but then also we we we cover it in various currencies like the ones you mentioned and i think um it is really uh it's it's a great confirmation of our thesis gold is rising in every currency now

gold made new all-time highs recently in every currency but the us dollar and from our point of view it's not a question of if but rather of when we will see all-time highs in u.s dollar terms as well and i think you know once we go above this 1920 um um mark that we saw i think was it late august or beginning of september in 2011 i think this will mean that of course the media will pick up gold again i think this will kind of show us the beginning of a new stage of of this bull market some sort

of accelerated stage and go off stage yeah that's what i've been waiting for and and and just just one one thing mike to add i don't think that that gold is making new all-time highs i think it's it's the euro it's the swiss franc it's the indian rupee whatever making new all-time lows measured in gold so this is the view that we have exactly right because you'd have to measure it uh gold against all of the different stock markets against all of the different it's

it's making all-time highs uh right now uh well no it isn't um uh you'd have to measure it against all of this stuff in society so you have to measure against bonds real estate you have to take the dollar and the currencies around the world out of the equation to see if it's really making all-time highs and it still has a long way to move it you're absolutely right these are the currencies losing value compared to uh gold but what i find fascinating here and very uh reassuring and rewarding because i've

been in gold since 2002 is the table below the chart of how you constructed these graphs and the table when you look at the last column of the table the average there are only two years since 2001 where gold has it has gone down globally on the average you've got uh uh almost 19 years here you've got 18 years worth of data and so 16 out of 18 years it has been rising in value compared to the average of all these world currencies this table you know and i hate tables i'm dyslexic and uh to me looking at a chart i can

understand it it's a picture it's not words or numbers but when i look at a table it's just wallpaper to me it's just a repeating pattern and it's hard for me to glean something out of it but here you've done things in in uh you know red and green and uh so it's fairly easy to uh see what years were under performance and 2013 was the only year that was straight across the board where uh gold did a pullback measured in all of the different currencies uh but uh what you see also when you

look at the uh vertical columns um it's the dollar is the the one currency that is uh the worst tool to measure things with so i'm amazed and and i think going forward um i think the big question that you have to ask yourselves is do i think that a dollar a euro a swiss franc an indian rupee will preserve my purchasing power over next three five ten years better or is it an ounce of gold so so this is basically the big question that you have to ask yourselves and and i know the answer uh especially with

the whole uh you know economic situation with the debt situation with uh inflationism but i think this is crucial to to to ask oneself which currency is according to this table the odds are 18 to two or nine to one i guess yes nine to one so you you got one chance of winning out of nine uh uh compared to you know if if you're in in stocks if you're in gold it's the reverse you've got nine times the uh chance of preserving your but but i have to add because when when uh this this table starts in 2001 and i

wrote my first in goldwith trust report in 2007 and back then most people in you know kind of the gold haters because gold is a very emotional topic and people tend to love it or they hate it there's nothing in between for some reason and everybody said yeah but it doesn't pay any interest and you know interest this is this word i think you know uh young people are not familiar with with the concept of interest rates anymore um but you know back then we could say okay there is opportunity costs where

because we've got interest rates but now and going forward um i'm pretty certain that there really wasn't opportunity cost they'll say yes but gold doesn't produce an income it doesn't pay interest to you know it doesn't have a cash flow well the stock market doesn't either if you look at the uh dividend yields on the s p 500 they've been uh one or below uh ever since the year 2001 and you know if you're talking about back in 2000 two three four five six seven it was

impossible to convince somebody that gold was actually a smart move you'd say i would tell people you know you've got to buy gold uh and they'd say gold that's the worst investment you could ever buy it's been going down for 20 years and i'd go exactly it's been going down for 20 years don't you get it and they didn't get it it was really something trying to convince people uh once we had that run up from 2008 through 2011 people uh began to become open to gold

but still the percentage of investors that actually have any meaningful portion of their portfolio allocated to precious metals is uh absolutely microscopic it's there's just nobody out there you know when you talk about the major currency in the world the major currency holders the people that are the wealth managers and stuff the amount that's allocated to gold is uh pretty close to zero and so there's going to come a day where there's a flood and uh the uh the you know look at the average

column on that table and the number of years with double digit returns is and you got to remember that returns kind you know if you have double digits the next year the compounding effect is huge when i do a performance chart comparing uh gold to the s p 500 or the dow the stock markets from the year 2000 are up about 100 percent measured in dollars but the uh but gold is up 500 and so you know people still think that stocks outperform gold no only in the short term gold is we've been in this

mid-cycle correction from 2011 until today and that's all i see it as it's a mid-cycle correction i'm riding through it and using it to increase my position and uh this mid-cycle correction so there's been uh uh like 2013 you've got on here uh gold out the the markets outperformed gold uh all in all of these currencies but that's the only year on here where it outperformed and so people still for some reason think that paper assets are are a better place to be and this chart just proves that paper

assets have been a stupid place to be for this entire century am i correct there what do you think yeah absolutely i mean i i think that people um most of the time when i show this chart uh they just cannot believe the numbers and we say you know you you can check them they're 100 accurate and if you have a even longer chart since the 1970s for example uh where we had 80s and 90s when the best uh decades to hold gold but still since then you've got a compound annual growth rate of 10.1 percent in gold so so that's not

not that bad actually and and and therefore i think it's it's it's it's it's kind of odd that people still think that it is a bad investment and it's you know it's non-productive and so on and from my point of view mike um i think that that gold um you know there's a place for for gold in your portfolio there's a place for for equities i think there's fantastic companies around yeah at reasonable prices and and i think you know always um making this competition between gold

and productive assets um like equities doesn't make any sense it's like comparing the i don't know the the football the soccer team in puerto rico with the ski team in austria yeah that comparison doesn't make any sense but but i think going forward and i think that's that's one of the main points that we're making in the report we show a ratio between the s p 500 and gold and actually this ratio made a bottom in q4 2018 so since then gold is outperforming equities again and

normally those trends are really secular long-term trends and it's not only gold outperforming equities it's also um gold doing well in every currency as as we talked about and gold is outperforming the bond market so it's really uh how should i put it a stealth bull market in gold but the interesting thing is that nobody really cares about it yet because when i talk to institutional asset managers they say yeah well gold it made a move it's it's quite interesting they don't care about mining stocks for

example and i think one of the major reasons is that they're legally not able to invest in physical gold of course they are able and allowed and incentivized to invest in um safe um government bonds um but from uh from uh you know it's kind of a but it's um for them it's it's it's often not possible to to invest in physical gold yeah because of legal restrictions they can invest in etf sometimes and i think going forward we will see more investments in in gold mining stocks and we already saw that

generalists are coming into the market have a look at the volumes traded in you know the large caps like barrick like franco nevada like like newmont you can see that there's big money coming into those into those stocks which is a sign that you know this bull market entered a new stage um but i think it's it's still still pretty early so the party has only started yeah okay so let's move on to the uh next charts uh milligrams of gold per us dollar and euro and this goes back to just

19.99 if you took this back a century i i think that the currencies uh mo pretty much all of the currencies i don't think there's any currency uh there is that has more than like 90 more more than four percent of its purchasing power left against gold uh most of them are somewhere between down between 96 and 99 uh for the you know if you go back a whole century so uh this is just showing uh so tell me about the us dollar and the euro in milligrams of gold and what you see in this chart well it just shows you that the

purchasing power of those those currencies um is constantly falling and i mean since the year 1999 that's that's not so long ago um seeing the purchasing power of the the euro um down 83 percent and of the us dollar down 84 um i mean those those numbers are just over right so clyde harrison we quote him and he said currencies don't float they just sink at different rates and and i can agree and and you know i think going forward um as i've said we shouldn't expect um the purchasing power of feared money

to rise significantly so so i think gold will continue to do its job what it's supposed to be to protect your purchasing power um and and i think gold has shown that over over the last decades and over the last centuries and uh you know we we wrote at length uh why this happens and you know the stock to flow ratio we wrote about our monetary system inflationism and so on and i think um you know at some point there will as my swiss colleagues always tend to say you know they're very diplomatic

there will be a realignment of our monetary system so you know some sort of a currency reform and i think it's for good reason that the most important players beat the us the eurozone the chinese the russians the imf for some reason they've got loads of gold in their balls so i think in the process of this realignment of our currency system gold will again play a major role and that's probably the point in time when there will be from one day to another and this usually happens over

the weekends there will be some sort of a revaluation of gold or a revaluation of fiat currencies yeah so you said uh that uh the currencies all just they don't float they all sink at different rates and this is true and you know i just did an interview with brent johnson of the dollar milkshake theory and he thinks that the debt short position against the u.s dollar around the world because there is so much borrowing that happens denominated in u.s dollars and then converted to another currency

and spent somewhere or invested that is owed back around the world it's it's huge uh that because that has to be paid off eventually uh it it means that the dollar will he believes that the dollar will rise i believe that the dollar will rise also but we've also both been saying there will come a time where gold and the dollar rise simultaneously because when you're measuring the dollar the us dollar index it's measuring against all these other currencies so if all the currencies are falling at

different rates and the and for a short period of time the dollar is falling a little more more slowly than the other currencies that means the dollar rises against those currencies but the one thing they're not that's not falling with them is gold so there is you know we're going to see a period of time i believe where gold and the dollar is rising and gold will probably be rising faster than the dollar so this is a very enlightening chart how much did you say that the euro and the

dollar have lost against gold since 1999 well for the euro since it was introduced introduced as book money in 99 uh it was 84 and for the dollar it was 83 percent in in just two decades that is amazing that uh they would lose that that those currencies would lose that much purchasing power and if you uh take the fact that gold is up you know over 500 percent that's the inverse of those two figures eighty-three eighty-four percent uh you know uh take the inverse of that and uh gold is up five hundred percent so

okay uh i wanna thank you very much uh for uh being here and going over your amazing in gold we trust report that comes out annually and and like i say uh this really is a book it's as much when i write a book it takes years to do you guys do it every single year so i want to thank you for all your analysis what you're doing for the entire sector and what you're doing to try and help people to save themselves uh a lot of times from themselves but from what's coming from what the

central banks are doing to uh the the major world currencies because uh this the whole scenario here does not end well you would agree with that right for most people it ends well for precious metals investors uh we're going to do very well out of it but i think in general uh what the central banks have done is going to be very bad for the i mean the whole crisis now means of course more interventionism um less capitalism less um free markets and and that and this is something that concerns me and

and of course gold is one of the solutions um to those problems and those questions um and i think you you know it's already doing tremendously well so so it it protected people from from from the crash in equity markets this year so so i think you know yeah uh going forward the next couple of years probably decades will be um will be quite quite good for us but on the other hand of course uh it's it's also quite saddening because um sometimes i think that um i would uh hope that we've got you know um

sound money that we would have uh you know not central bankers being like the most important drivers of of markets but but like real market forces and you know supply demand being um responsible for for market action and not what what um mr powell or or mrs lagarde says next so but it is what it is and we got to make the best out of it but mike i would like to say it is not only me writing the report it's i'm writing it together with my park mark walk and we've got a fabulous team of 20 people all together and without

their support and hard work and we're really putting in lots of love devotion sweat capital into this report and without our fabulous team this wouldn't be possible so thanks to the whole team okay well again i want to thank you for doing this video with me and we're going to sign off now so uh say goodbye to the audience and thank you very much take care okay thanks everybody bye