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Gold 75% Underowned In 20 Years, Or Exter's Pyramid For Gen X/Y

  
Analysis, Economy, Education
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Kedrosky has posted an informative chart from JPM’s Michael Cembalest indicating that ownership of gold in dilutable terms (aka dollars), as a portion of global financial assets has declined from17% in 1982 to just 4% in 2009. And even thought the price of gold has double in the time period, as has the amount of investible gold, the massive expansion in all other dollar-denominated assets has drowned out the true worth of gold. Were gold to have kept a constant proportion-to-financial asset ratio over the years, the price of gold would have to be well over $5,000/ounce.

Of course, the chart above pales in comparison with the true Exter pyramid, which incorporates all those wonderful JPM/Goldman inventions known as derivatives, amounting to $1.8 quadrillion, which certainly did not exist in 1982. If one were to factor the above table  to include this Exter securitized credit money as well, then the true constant worth of gold would be well north of $10,000.

Emirates Palace unveils gold dispensing ATM

  
Education, Life, LINKS
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Emirates Palace has raised the luxury stakes in the Gulf even higher by unveiling an ATM that dispenses gold.

The machine, which monitors the price of gold minute-by minute, offers small bars that weight up to 10 grammes engraved with the Emirates Palace logo, as well as a variety of coins.

Thomas Giessler, the inventor of the Gold to Go machine, chose Abu Dhabi because of its luxury atmosphere, and hopes it will tie in nicely with the region’s traditional ties in gold commerce.

“A gold machine should be made of gold,” said Thomas Geissler, the chief executive of Ex Oriente Lux AG. “This is now at a hotel made out of gold. It is the perfect place.”

Six coins of differing weights come engraved with a maple leaf, kangaroo and Krugerrand, symbols of the gold-producing nations South Africa, Canada and Australia.

Emirates Palace Hotel general manager Hans Olbertz said: “We seized upon this idea and, as one of the most exclusive hotels in the world, we wanted the Emirates Palace to play a pioneering role and be the first hotel in the world to offer its guests this golden service.”

The idea is aimed at both a souvenir and an investment. Gold is still one of the most sustainable forms of investment and is currently as a record high price due to volatility in the current global economic market. (more…)

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