We read this fabulous update on the gold market from Ned Naylor-Leyland earlier this month and it was one of the best things we’ve seen on the April gold price smash. (see embed below or click the link to see the full pdf). In the past week we listened to an interview with Naylor-Leyland by Alistair Macleod where they touch on a number of the points covered in his “July Gold Update” document. So we thought we should post both of them together in case you have missed seeing these elsewhere. Have a read or a listen to at least one of them, depending on your preferred medium. The July Update is not overly long but packed with interesting information.
Alasdair Macleod interviews Ned Naylor-Leyland of Quilter Cheviot Investment Management.
Given much chatter of late on the blogosphere on the topic of gold backwardation, this is a timely interview as backwardation is one of the main topics discussed.
Ned discusses his July Gold Update (document embedded above) and his view that gold has actually been in backwardation a lot longer than this just this last week. Ned sees this backwardation as a very telling point when one considers the large aboveground stock of gold.
Ned brings up a very interesting point regarding velocity within the LBMA physical gold market versus the paper money markets. Physical gold, which should sit relatively still, is moving while currency velocity is low.
They then discuss daily trading volumes and the fractional nature of the precious metals markets before analysing the movement of physical metal, from West to East.
Recorded on 12 July 2013.