Mon, Jun 27, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: Bullion - barbarous relic, bubble or boom

Tuesday, June 01, 2010

Article authored by Toby Birch, of Guernsey Gold Limited. Toby Birch is an international fund manager dealing in precious metals, mining stocks and natural resources, and the author of The Final Crash: Addictive Debt and the Deformation of the World Economy, published in April 2007, just months before global stocks plummeted. He is a Fellow of the Chartered Institute for Securities and Investment.

The topic of precious metals is a contentious one; provoking extreme and often entrenched reactions. The Depression-era economist John Maynard Keynes once described gold as a ‘barbarous relic’. This was in part due to its ancient role as a currency but also because its restraining effect on money supply when the economy was on its knees. With good stewardship there should be no place for using metals as money but the human desire to live beyond our means has been our undoing. Paper money has been the passport to profligacy and we are just beginning to pay the price for trusting in promissory notes with no foundation.

Financial folly and war have made easy bedfellows down the ages. By regarding the recent actions of gold in an historical context one realises how little has changed. The rise and fall of the Roman Empire acts as a worked example given its many parallels with the modern world.

Vested interests and lobby groups influence modern Senators as much, if not more, than their Roman counterparts. In the First Century AD, the coins of the realm......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Roundup: Hedge funds shrink as liquidations outpace new launches in Q1: hedge fund news, week 27[more]

    In the week ending 17 May, 2016, HFR said hedge fund liquidations declined narrowly to begin 2016 after rising sharply to conclude 2015, as investors positioned f

  2. Europe - Hedge funds keep powder dry over big Brexit bets, Hedge funds sense profit in Europe shock waves after Brexit vote, Soros warns Brexit may cause pound plunge worse than Black Wednesday, After Brexit: What will happen if Britain votes to leave the UK?[more]

    Hedge funds keep powder dry over big Brexit bets From FT.com: Hedge funds are shying away from big bets on Brexit, with many unwilling to risk further losses having already suffered a painful first half of the year. With the outcome of a UK vote on the country’s membership of the Europea

  3. News Briefs - ’Flash Boys’ get green light to launch stock exchange, Pimco says ‘storm is brewing’ in U.S. commercial real estate, Bankers get ready to rumble at Hedge Fund Fight Night, AIMA Australia celebrates 15th anniversary[more]

    ’Flash Boys’ get green light to launch stock exchange In an investing environment ruled by fast, the newest U.S. public stock exchange is banking on slow. Well, slower. IEX Group, which won Securities and Exchange Commission approval on Friday to go head-to-head with the New York Stock E

  4. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  5. Global markets fell, hedge funds gain in mid-June on Brexit, Fed rate concerns[more]

    Komfie Manalo, Opalesque Asia: Global financial markets declined through mid-June, as uncertainty associated with the upcoming Brexit referendum and expected U.S. Fed interest rate hike contributed to increases in volatility across asset classes, data provider