GoldMoney’s Alasdair Macleod talks to our friend Ned Naylor-Leyland of Cheviot Asset Management about Europe’s debt crisis, the euro, and gold and silver price prospects. He also discusses the Pan-Asia Gold Exchange, and how an increasing number of investors are demanding allocated gold.

Ned is slightly more optimistic about the euro than most analysts, owing to what he sees as the high likelihood of further successful moves towards fiscal union. He also thinks the large gold reserves held by the European Central Bank as well as the largest member states

As discussed in his recent interview with The Doc, Naylor-Leyland discusses the allocated silver exchange scheduled to start trading within the next few months, which could have massively bullish consequences for silver.

Ned also discusses proposals to make gold bullion a Tier-1 bank asset.  He states that this is further evidence that gold is once again regaining a formal role within the financial system.

  1. Gold becoming a Tier 1 asset is only one third of the story.  The Central Bank reserve requirement on sovereign debt for member banks is going to zero.  And Central Banks are going to negative interest rates on the $1.5T reserves that member banks have on deposit.  Those three items taken in concert will push $15T out into the global economy.  Result will be a surge in the price of gold and silver.  

  2. Uglydog,  Nice posts.  I have a question.  Are you saying that the Basel III requirements don’t need to be met?  If the sovereign debt is going to zero, then the banks will not meet the requirements since they won’t have enough capital and good collateral.  This will brake the Basel III agreement.   I do believe we will see negative interest rates in the US soon but this could backfire.  This could cause massive runs on the banks deposits and the 1.5 trillion will be a lot less.  They will not be able to leverage out to 15 trillion if there are banks runs.    I read this from Micheal Pento as well.  He has mentioned this leveraged position of  1.5 trillion of deposits in the banks.  I’m not buying it totally.  I do agree that negative rates will come in the US.  The Tier 1 aspect is totally true.  Just wanted some clarification.  Thanks….

  3. Gold becoming a Tier 1 asset means it is considered “as liquid as cash”. Or “collateral with no haircut” as the gentleman says. For the TBTF it means they can inflate their balance sheets further while buying gold.

    When I think of it, it might mean that for the 1% (read: 0.01%) the struggle is over and they think they have accumulated enough. Chinaman nods, uncle Sam panics.

    Remember it’s the BIS pushing Tier 1 gold. Good for the ECB also probably.



  4. Firstly, I just have to blurt out that Naylor-Leyland has so quintessential
    a British countenance! If I had skills with PhotoShop, I couldn’t resist
    putting him in a 17th century wig with a fine lace stock! But … then … it’s
    … just my imagination, running away with me …

    My goofy predilections aside, I’m more suspicious than he, of these sudden 180 degree
    turn-abouts by the elites on gold endorsement and the ‘coincident’ ‘come-to-Jesus-revelations’
    in the main stream media, condemning bankers generally. (‘Occupy Wall Street’ was a ‘warm-up act’)

    I rather think that because politicians fancy themselves as somehow having
    preserved more of their ‘eminence’, that they’re planning to re-orient the
    banknote scheme as ‘government issue’ under the ruse of ‘gold backing’ (sans convertibility,
    without a scintilla of doubt).

    Out of the Mercantilist frying pan and into the Feudalist flames of hell, I

  5. Is it me or does Naylor_Leyland always say we are about few months away from a new silver exchange? Come on guys, we are almost there.  Just a couple more months.  6 months later, we are almost there.  It’s just around the corner.  Year later, seriously it’s just a few more months.  I promise.  I stopped listening at Pan Asian Gold exchange.  Sorry, I want to like the guy but until I see the exchange online and running, I won’t hold my breath.

  6. Reflector, what the hell are you talking about?  Have you followed Leyland?  I doubt you have.  I have heard 10 or more interviews of the guy saying the same thing.  His credibility is lacking in my department.  I will be the whiny kid on my terms not yours.  You are on a zero authority basis when it comes to my behavior.

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