Newstalk Interview With Bobby Kerr On “Down to Business"
Newstalk Interview With Bobby Kerr On “Down to Business”
- Gold is extremely rare- all
gold ever mined fit in giant bar the size of four bedroom
- Gold is a tangible asset which always retains value - unlike paper assets
- Growing Chinese, Indian & Asian middle class provide “fundamental pillar of support”
- Jewellery is not a suitable vehicle for gold investment due to high mark-ups and VAT
- “Something romantic about gold” and a “premium product” said Bobby Kerr
- Risk of further weakness in short term but buying opportunity presenting itself
- History and academic research shows gold a “hedging instrument” and safe haven asset
Research Director and founder of GoldCore, Mark O’Byrne, was interviewed by Bobby Kerr on Newstalk’s “Down to Business” on Saturday morning. A range of aspects pertaining to gold and the gold market were discussed including the rarity of physical gold; the enormous demand for gold from China and India and gold’s proven safe haven qualities.
When explaining the true scarcity of physical gold, Mark was asked whether all the gold ever mined would fit into a 4-bedroom house. Mark agreed, stating that if all above ground gold in existence were refined to 99.9% purity it would fit in a cube with 21-meter sides. This would be comparable to the centre court of Wimbledon or two olympic size swimming pools. It is therefore an extremely rare metal.
Gold is a tangible asset which, regardless of how poorly it may perform in the short term due to the ebb and flow of markets - always retains a value in the long term. When stocks and shares enter into crisis periods there is always the risk that their value can be completely erased as happened with Bear Stearns, Lehman Brothers and as almost happened to some Irish banks.
History and empirical data demonstrate that gold is a time-tested form of financial insurance said Mark O’Byrne. He cites Trinity College Dublin’s Brian Lucey and the work of Dr. Constantin Gurdgiev whose academic research shows that gold is a “hedging instrument” and a “safe haven asset”.
The Newstalk interview can be listened to here