5 Oct 2012

GoldCore's Mark O'Byrne on the Fake Gold Scandal, Macro Gold, and the Risk On Trade!

Gold hit an 11 month high today, supposedly bolstered by signs that the ECB will keep borrowing costs low and the notion that the central bank stands ready to buy bonds in the secondary market. As long as central banks continue to print and maintain negative real interest rates, should investors consider owning gold? A recent PIMCO report stated the following:
"We believe investors should consider allocating gold and other precious metals to a diversified investment portfolio... Regarding inflation in particular, we feel that the Federal Reserve's decision to begin a third round of quantitative easing makes gold even more attractive."



Could this mean investing in gold will become mainstream? We speak to GoldCore founder Mark O'Byrne about the impact of PIMCO's report. We discuss both the supply side, as well as the demand side of the gold bull run. As far as supply is concerned, what are the fundamentals driving gold higher? And as far as demand is concerned, how important is the macro environment of risk-on, risk-off? Are people using gold to hedge, not against moderate inflation, but against the potential for dislocating deflation or runaway inflation and hyperinflation? Mark O'Byrne will give us his take. He is founder and executive director of GoldCore.

Also last month a gold dealer in Manhattan discovered a certified gold bar was in fact made up of more than 75 percent Tungsten. Does fake gold really represent a tail risk for buying physical gold or is this a one-off thing? We speak with Mark O'Byrne, Founder and Executive Director of the international bullion dealer GoldCore about the role of gold and the potential for fraud.

And although we tend to favor market solutions, are market forces actually doing a disservice to democracy? Are media outlets really just focusing on the horserace of presidential politics rather than the substance because the former is more profitable? Lauren and Demerti talk about the presidential debate coverage in today's "Loose Change." Source

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