A. Portmann's  Instablog

A. Portmann
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I have over 15 years of experience in the banking and finance industry. I hold a BBA and am a Certified International Investment Analyst (CIIA) and portfolio manager. I am the fund manager at GPA Portfolio Management in Zurich, Switzerland. We offer professional portfolio management with a... More
  • When Gold Gets Nationalized- Gold Equities Are The Only Place To Go 0 comments
    May 6, 2013 8:22 AM

    There has been a lot of talk about "nationalization" of gold. Basically like 1933 the government would confiscate gold and make it against to law to own gold (above a certain quantity).

    In the last couple of months we have seen more signs that there could be a "real" shortage of physical gold, especially in the US. The April 12th gold crash was obviously orchestrated (who would sell almost 400 tonnes of gold into a thinly trading market...?). Rumors were that some bank needed to buy gold (at lower prices), as they couldn't deliver physical gold against their "paper" promises.

    Investors all over the globe have decided to rather own physical gold (vs. paper gold). Further it was interesting to note that the German Bundesbank is repatriating its gold from the USA. The Swiss National Bank by the way just last week reported that it does not have any of its physical gold in the US (but only in Canada and Great Britain). That is very interesting, as one might argue that Switzerland had a substantial amount of its gold in the US after WWII. What happened. Is really all the gold at Fort Knox. Why is there no audit at Fort Knox?

    Enough of conspiracy theory. Fact is that should the US government decide to put its hands on physical gold, then not only are the US based gold markets (COMEX, etc.) finished, but as well most gold ETFs will be closed down. There remains just one alternative to benefit from raising gold prices: the gold miners! Buying shares of the gold miners would offer the only "legal" and profitable way to keep ones exposure to the gold price.

    The gold miners are trading now at record low valuation levels. Why not take this unique opportunity and get some exposure to this "ultimate" safe-haven investment?

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