We Study Billionaires - The Investor’s Podcast Network TIP638: Gold w/ Lyn Alden
40 snips
Jun 16, 2024 
Lyn Alden, an investment expert and author of "Broken Money," joins the discussion to unpack the recent surge in gold prices. She explains the intriguing dynamics of central bank purchase strategies and the importance of gold in emerging economies versus developed ones. The conversation delves into the pros and cons of a gold standard, the distinction between physical and paper gold, and how geopolitical climates influence market conditions. With a mix of insights and anecdotes, Alden highlights the strategic value of gold in today’s financial landscape.
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Gold Rally Drivers
- Gold's price rally is driven by central bank and Asian private sector buying, not Western ETFs.
- This is notable as gold performs well despite high interest rates and a strong dollar, usually headwinds.
Central Bank Gold Buying
- Central banks bought over 1,000 tons of gold for the second year running, significant compared to the ~2,500-3,000 tons mined annually.
- The total gold ever mined is around 200,000+ tons.
Shift in Central Bank Reserves
- Central banks' total gold holdings bottomed in 2009 and have been rising since.
- Around 2013-2014, they reduced US Treasury purchases, possibly diversifying due to a strong dollar and China's shift in strategy.
