Ned Naylor-Leyland talks to Alasdair Macleod about Europe and increasing demand for allocated gold

GoldMoney’s Alasdair Macleod talks to 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 (Germany, France and Italy) are a plus for the currency.

Regarding the Pan-Asia Gold Exchange that he talked about at last summer’s GATA conference in London, Ned notes that internal Chinese political wrangling appears to have blocked the introduction of an international fully-allocated spot gold contract. However, an equivalent silver contract is going to start trading within the next few months, which could have bullish consequences for silver.

Alasdair and Ned also discuss proposals to make gold bullion a Tier-1 bank asset. They state that this is further evidence that gold is once again regaining a formal role within the financial system — good news for both gold investors and the banks themselves.

This podcast was recorded on 20 July 2012.

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FinanceAndEconomics

Alasdair started his career as a stockbroker in 1970 on the London Stock Exchange. In those days, trainees learned everything: from making the tea, to corporate finance, to evaluating and dealing in equities and bonds. They learned rapidly through experience about things as diverse as mining shares and general economics. It was excellent training, and within nine years Alasdair had risen to become senior partner of his firm. Subsequently, Alasdair held positions at director level in investment management, and worked as a mutual fund manager. He also worked at a bank in Guernsey as an executive director. For most of his 40 years in the finance industry, Alasdair has been de-mystifying macro-economic events for his investing clients. The accumulation of this experience has convinced him that unsound monetary policies are the most destructive weapon governments use against the common man. Accordingly, his mission is to educate and inform the public in layman’s terms what governments do with money and how to protect themselves from the consequences.

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