The Rothschilds are buying gold through their investment house RIT Capital
Partners and Lord Jacob Rothchild is warning about the results of “the
greatest experiment in monetary policy in the history of the world”.
British investment banker Lord Jacob Rothschild is buying gold.
Pictured with Joanna Lumley. (Source: Getty)
The Rothchild’s investment house has increased its allocation to
gold by 8% and aggressively sold quoted equities and sterling to
navigate choppy “uncharted waters” post-Brexit. Sale of shares
have been used to buy gold and other non-disclosed precious metals, which, at
the end of June accounted for 8 per cent of the £2.8 billion portfolio
according to the trust’s half-year results, released on Tuesday.
“The six months under review have seen central bankers continuing what
is surely the greatest experiment in monetary policy in the history of the
world.
We are therefore in uncharted waters and it is impossible to predict
the unintended consequences of very low interest rates, with some 30 per cent
of global government debt at negative yields, combined with quantitative
easing on a massive scale.
In times like these, preservation of capital in real terms continues
to be as important an objective as any in the management of your company’s
assets.”
Rothschild said to date quantitative easing has successfully driven stock
markets higher, but he rightfully fears this will not go on forever. He adds
that a number of headwinds could also derail markets – including the very
uncertain geopolitical risk.
Geopolitical Risks
“Many of the risks which I underlined in my 2015 statement remain;
indeed the geopolitical situation has deteriorated with the UK having voted
to leave the European Union; the presidential election in the US in November
is likely to be unusually fraught; while the situation in China remains
opaque and the slowing down of economic growth will surely lead to problems,”
said Rothschild.
“Conflict in the Middle East continues and is unlikely to be resolved
for many years. We have already felt the consequences of this in France,
Germany and the US in terrorist attacks.”
As we have covered in recent months, the smart and prudent retail,
company, family
office, HNW, UHNW, pension and institutional money is aware of the real
risks of a new global financial crisis and continues to diversify into gold.
Recent Market Updates
– 45th
Anniversary Of Nixon Ending The Gold Standard
– Gold
In UK Pounds Collapses 38% Versus Gold and 56% Versus Silver Year To Date
– Will
Ireland Be First Country In World To See Bail-in Regime?
– Money
“Madness” Negative Interest Rates Sees Gold Buying Surge
– Gold
Investment Demand Reaches Record In First Half 2016 On “Perfect Storm”
– Peak
Gold – Did Gold Production Peak in 2015?
– Financial
Times: “Victory For Gold Bulls Is Only Just Beginning”
– Irish
Banks Most Vulnerable In Stress Tests – Banking Contagion In EU Cometh
– Gold
In Sterling 2.2% Higher After Bank Of England Cuts To 0.25% and Expands QE
– Silver
Kangaroo Coins – Sales Surge To Over 10 Million
– Trump,
Clinton, “Ugliest” Election Coming – Gold’s “Summer Doldrums” Prior To
Resumption of Bull Market
– Marc
Faber: Invest 25% Of Investment Portfolios In Gold Bullion
– “Could
Not Invent A More Bullish Story For Gold Bullion”
Gold and Silver Bullion – News and Commentary
Buying
picks up ahead of festive season in India, China (Reuters)
Texas
State Gold Depository Another Step Closer To Reality (TenthAmendmentCenter)
Gold
slips on U.S. Fed rate views (Reuters)
Gold
Drops as Fed’s Williams Says He’s for Increasing Rates Soon (Bloomberg)
Gold up
as Fed minutes cool rate hike prospects, weigh on dollar (Reuters)
Major
gold rush since the Bank of England’s interest rate cut (CityAM)
Why
Investors Should Consider a Gold Position (Nasdaq)
Britain
faces a nasty shock when the global energy cycle turns (Telegraph)
What
will you do when banking dies? (MoneyWeek)
Market
‘breakdown’ to be ‘sudden, intense, and large’ – Paul Singer (CNBC)
Gold Prices (LBMA AM)
19Aug: USD 1,346.85, GBP 1,026.30 & EUR 1,189.67 per ounce
18Aug: USD 1,347.10, GBP 1,023.93 & EUR 1,190.84 per ounce
17Aug: USD 1,342.75, GBP 1,031.23 & EUR 1,191.96 per ounce
16Aug: USD 1,349.10, GBP 1,039.89 & EUR 1,197.33 per ounce
15Aug: USD 1,339.20, GBP 1,037.21 & EUR 1,198.85 per ounce
12Aug: USD 1,336.70, GBP 1,032.60 & EUR 1,199.02 per ounce
11Aug: USD 1,344.55, GBP 1,037.05 & EUR 1,206.06 per ounce
Silver Prices (LBMA)
19Aug: USD 19.42, GBP 14.80 & EUR 17.14 per ounce
18Aug: USD 19.78, GBP 15.04 & EUR 17.47 per ounce
17Aug: USD 19.57, GBP 15.04 & EUR 17.37 per ounce
16Aug: USD 20.04, GBP 15.43 & EUR 17.77 per ounce
15Aug: USD 19.90, GBP 15.40 & EUR 17.81 per ounce
12Aug: USD 19.87, GBP 15.33 & EUR 17.81 per ounce
11Aug: USD 20.21, GBP 15.56 & EUR 18.13 per ounce
Recent Market Updates
– Gold
– “Mother of All Bull Markets Has Only Just Begun” – Grandich
– 45th
Anniversary Of Nixon Ending The Gold Standard
– Gold
In UK Pounds Collapses 38% Versus Gold and 56% Versus Silver Year To Date
– Will
Ireland Be First Country In World To See Bail-in Regime?
– Money
“Madness” Negative Interest Rates Sees Gold Buying Surge
– Gold
Investment Demand Reaches Record In First Half 2016 On “Perfect Storm”
– Peak
Gold – Did Gold Production Peak in 2015?
– Financial
Times: “Victory For Gold Bulls Is Only Just Beginning”
– Irish
Banks Most Vulnerable In Stress Tests – Banking Contagion In EU Cometh
– Gold
In Sterling 2.2% Higher After Bank Of England Cuts To 0.25% and Expands QE
– Silver
Kangaroo Coins – Sales Surge To Over 10 Million
– Trump,
Clinton, “Ugliest” Election Coming – Gold’s “Summer Doldrums” Prior To
Resumption of Bull Market
– Marc
Faber: Invest 25% Of Investment Portfolios In Gold Bullion
