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TIP638: Gold w/ Lyn Alden

Jun 16, 2024

01:02:56

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Investment expert Lyn Alden discusses why gold hit an all-time high, the role of central banks in gold purchases, emerging economies' gold balance sheets, potential benefits of a gold standard, and the allocation of gold in portfolios. They also touch on paper gold vs. physical gold, the cost of gold, and discounts for bulk purchases.

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Quick takeaways

Central banks outside developed nations are acquiring gold at a record pace, notably in Asia, emphasizing a strategic move towards increasing gold reserves.

Gold serves as a diversifier during inflationary periods when traditional asset classes falter, highlighting its historical performance in offsetting weaknesses.

Physical possession of gold bars provides a bearer asset outside the financial system, appealing to individuals seeking asset ownership without intermediary risks.

Deep dives

Central Banks' Growing Accumulation of Gold

Central banks outside developed nations are acquiring gold at a record pace, notably in Asia, while Western entities have not sold much. This surge in gold purchases by central banks has been consistent, with over a thousand tons bought annually, contributing to a total gold stock exceeding 200,000 tons. Furthermore, since 2014, there has been a shift towards diversifying central banks' portfolios away from U.S. Treasuries, highlighting a strategic move towards increasing gold reserves.

Trends in Central Bank Gold Holdings and US Treasury Purchase

00:58

The Impact of Reserving Practices on Wealth Distribution

01:21

Gold Performance in Different Economic Scenarios

01:24

Exploring Co-working Spaces and Luxury SUVs Before Delving into Country Economics

03:57

Intro

6min

Central Banks and Gold Reserves

13min

Exploring Co-working Spaces and Luxury SUVs Before Delving into Country Economics

4min

Exploring the Dynamics of Gold Ownership and Currency Manipulation

18min

Historical Gold Confiscation and High Yield Cash Accounts

7min

Exploring Challenges and Opportunities in the Gold Market

10min

Exploring Various Aspects of Gold and Its Relationship with Economic Factors

4min

Implications of Central Banks Buying Gold and US Fiscal Situation

5min

In this episode, Stig Brodersen talks with investment expert Lyn Alden about why gold has recently hit an all-time high. They discuss the optimal market conditions for gold investments and gold in portfolio management.

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

01:20 - Why the gold price is at an all-time high

02:41 - Who are the buyers of gold, and what is the role of central banks

15:27 - Why emerging economies have more gold on their balance sheet than developed economies

18:53 - Whether it makes sense for Argentina to print money to buy gold and then dollarize their economy

21:23 - Who would benefit from having a gold standard

28:06 - The allocation to gold in your portfolio and why does gold do well in market conditions when stocks and bonds do not

32:08 - What is paper gold, and how is it different than physical gold?

45:10 - What is the cost of gold, and what is the discount you will get from buying higher quantities

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.
Lyn Alden’s book, Broken Money – Read reviews here.
Our interview with Lyn Alden about Currencies and Debt | YouTube Video.
Our interview with Lyn Alden about her book, Broken Money | YouTube Video.
Our interview with Lyn Alden about How the Fed Went Broke | YouTube Video.
Our interview with Lyn Alden about Macro and the Energy Market | YouTube Video.
Our interview with Lyn Alden about Money | YouTube Video.
Our interview with Lyn Alden about Gold and Commodities | YouTube Video.
Lyn Alden's free website.
The website of the World Gold Council.
Check out all the books mentioned and discussed in our podcast episodes here.
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