In this excellent interview with Jan Skoyles, Ben Davies, CEO of Hinde Capital discusses the latest in the gold, silver and bitcoin markets. Davies and Skoyles break down the data on the gold and silver ETFs, check out the physical markets, explore the future of gold for China, discuss the outlook for Bitcoin and then Davies reveals a surprising new shape to certain gold ingots in the black market.
Davies, who predicted the imminent 2011 correction in silver only 3 days ahead of the top gives his views on silver today (there is massive demand at these low levels), and reminds readers that even with 2013’s massive correction (and 60% off the highs in silver), gold and silver remain the top performing asset since the Lehman collapse.
When asked his thoughts on whether the gold bubble has burst Davies replied: Gold has not had any sort of trajectory for any duration as the NASDAQ bubble, or even the recent move in silver which was in real terms hugely undervalued (just to get back to 1980’s real levels silver would need to reach $400). When people talk about gold being in a bubble, its pretty clear there has been no exponential move higher.
Actual invest-able gold is less than 0.5% of global assets ($22o trillion). In the 1960’s with the London gold pool the number was about 5%. It doesn’t take much increase in that number to see a drastic increase in the gold price.