Global Nuggets by Chris Howard

Sourcing Ethical Gold

Global Nuggets

By Chris Howard

03/08/2022


“How Do I Know Your Gold Is Genuine?”

This is one of the most common questions we are asked by new investors here at MyGold®.

Apart from saying that we only work with the leading global mints of the world and that, by nature, these organisations supply precious metal products to the highest quality levels, I thought it worth diving into how the industry governs itself.

In a world where gold and silver can be melted down without leaving a trace of where it has come from, there is a need within the industry to have a system in place to validate the source and purity of metals. Consumers are increasingly concerned about ethical mining, how miners are treated, and the environmental impact of extracting gold, silver and other precious metals. Across parts of Central America, South America, and Central Africa, landscapes have been laid waste by conflict mining and local workers exploited.

The organisation that audits and controls the purity of metals and their source is the LBMA (the London Bullion Market Association).

Most major refiners and manufacturers of precious metals belong to this organisation – it goes without saying that MyGold® sources products from LBMA members.

This Week’s News

Here’s a news roundup from the world of precious metals this week.

Gold Continues To Outperform Equity Markets

Despite the dismal start to the second half of 2022, gold continues to outperform equity markets. The S&P 500 ended the first half of the year down 20%, its worst half-year performance since the 1970s.

“Gold is still doing what it’s supposed to,” said. Daniel Pavilonis, Senior Commodities broker at RJO Futures. “With all the rate hike issues, gold is holding its ground. The price is lower, but it hasn’t broken down.”

https://www.kitco.com/news/2022-07-01/Sentiment-shows-gold-s-fair-value-is-around-1-800-for-now.html

Ukraine War To Slash Euro Zone 2022 Growth, Boost Inflation, European Commission Says

Europe is facing real challenges – from oil and gas supply to inflation – and the continuing war in Ukraine will only exacerbate the situation. The additional concern is that the borrowing costs of heavily indebted nations such as Greece, Italy, Portugal and Spain will rise far more than the more frugal countries such as Germany. Sounds familiar?

If these concerns deepen and spread, with the ECB increasing rates, we may be heading to another European debt crisis.

https://www.reuters.com/world/europe/eu-commission-cut-2022-euro-zone-growth-forecast-27-ft-2022-05-16/

Gold – Silver Ratio Hits a 2-Year High

https://www.kitco.com/news/2022-07-04/The-gold-vs-silver-ratio-hits-a-2-year-high.html

Gold vs Crypto

Whilst the world of cryptocurrency continues its meltdown, here’s a useful article comparing gold with cryptocurrencies such as Bitcoin.

Bitcoin vs Gold: Which is Better to Invest In? [Infographic]