Being Short Your Government: The Real Case for Gold & Silver

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The Master Investor Podcast with Wilfred Frost 56 min 1 speaker 8 chapters transcribed 1 month ago
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Why is being short the behavior of your government the core premise of this episode?

Ned Naylor-Leyland 0:00
This is about being short the behaviour of your of your government. I mean if you think they're going to be disciplined They're gonna look after you and they're going to raise rates above inflation and give you a real return on your cash. then don't do it. But if you, like me, are less confident that that's the case, that the history of money tends to suggest one thing, which is you're better off owning gold and and or silver versus your local currency. And by the way, the producers have never been cheaper than they are today ever. So while they have gone up, um there has been actually been negative flow to the space over that time frame, as amazing as that may seem to you. So these are the most profitable companies in the world.
Ned Naylor-Leyland 0:41
50% free cash flow margins, making making probably double and in some cases triple the free cash that tech is making. I think the Trump Fort Knox thing is is related. So so exp expand on that for me. Well, I mean, those of us in the gold community think think that quite a long time ago the gold was moved elsewhere anyway. Um, and that Port Knox is a bit of a shell game. There's not much going on there, hasn't been for a long time. So should he go there? And open it up and be proven right, which I'm sure President Trump would quite like to be proven right. Um seems to be one of his favorite things, then you would have the condition that the ECB warned about in their research note, and and I've been inferring, which is people go, but wait a minute, where's my gold?
Ned Naylor-Leyland 1:23
And if you're uh a rich oligarch and you ring up your Swiss banker and go, Where's my gold? And they go, What do you mean? Um you know, you have a sequence of events there which results in a much higher gold price.
Wilfred (Wilf) Frost 1:38
Welcome to the Master Investor Podcast with me, Wilfred Frost, where we celebrate and learn from the success of the greatest investors, business leaders, and politicians in the world, giving you, our listeners, the edge. The Master Investor Podcast is sponsored by LSEG, Interactive Brokers, the World Goal Council, and BMY Investments. Please do remember the views expressed in this podcast are for general information. information purposes only. Nothing in the podcast constitutes a financial promotion, investment advice, or a personal recommendation. More on that in the show notes. My guest today, Ned Naland, is the manager of the Jupiter Gold and Silver Strategy, which uh sits with uh nearly three billion dollars of assets under management.
Wilfred (Wilf) Frost 2:25
And just last week, he won the Investment Week Fund Manager of the Year Award for Precious Metals Funds. Ned has been consistently bullish on both gold and silver for a long time, not just uh popping his head up now as both metal. Shine bright. Ned, it is a delight to welcome you to the podcast and congrats on the award last week.
Ned Naylor-Leyland 2:48
Well, thank you very much. Um it's always nice to be recognized. Um, but moving on swiftly from the award, uh, thank you for having me on.
Wilfred (Wilf) Frost 2:55
Very convenient timing. This has been set up for ages. I didn't know the awards were last week, so it's it's really worked out uh well that we have this uh manager of the year with us uh freshly crowned. Um let's get into the very simple specifics first of all. What is the long-term case for gold?
Ned Naylor-Leyland 3:12
So so the uh the unfortunate thing, Wilf, is this topic is not well explained to investors. Um, gold is the risk free of the the system, always has been, but things changed dramatically in um well in the seventies and eighties, but I'd I would tend to say more importantly, when Volka took rates to twenty percent, we entered a a system where US Treasuries became the risk free of the financial system formerly. While gold operates in parallel alongside that. But the but the true answer to your question is it's going to maintain your purchasing power. So the case for gold is you want to save and not lose purchasing power. You own physical gold. That's what that's for. That's why central banks have huge amounts of it.
Ned Naylor-Leyland 3:57
Is intuitively the public recognize what gold is, they don't necessarily know how to explain it.

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