Episode 102: GoldMoney’s Alasdair Macleod talks to Ben Davies, co-founder and CEO of Hinde Capital. They talk about the recent weakness in the gold price and factors that will propel gold higher.
Ben Davies thinks that revaluing gold and backing the monetary system with it could be one of the least disruptive ways out of the credit mess. The continuance of debt monetisation on the other hand has the potential to cause a hyperinflationary collapse. Davies is especially pessimistic about Japan, and sees a lot of trouble ahead and talks about Fukushima as a turning point for the country. He also talks about the dire straits the British pound is in.
Davies discusses the recent disappointing performance of gold bullion in light of all the monetary inflation around the globe. However, he points out that the physical market is fairly tight which usually occurs around a price bottom. They also talk about the pressure on the gold mining industry, China’s accumulation of gold, Comex gold data and the possibility of another banking crisis.
This podcast was recorded on 20 February 2013.