Objective Capital Precious Metals, Diamonds and Gemstones Investment Summit: A Fund Manager's...

PRECIOUS METALS,DIAMONDS & GEMSTONES INVESTMENT SUMMIT

THE LONDON CHAMBER OF COMMERCE AND INDUSTRY ● THURSDAY, 20 MAY 2010www.ObjectiveCapitalConferences.com

9.30 – 10.00 A Fund Manager's View of Precious Metals Ned Naylor-Leyland – Investment Director, Cheviot Asset Management

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Precious Metals, Diamonds and Gemstones Investment Summit

Ned Naylor-LeylandCheviot Asset Management

20th May 2010

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ARE YOU A…

A

GOLDBUG CONSPIRACY THEORIST

B

PAPERBUG COINCIDENCE THEORIST

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Market Madness

• Nationalise losses, privatise gains

• €750bn bailout of German/French/UK banks

• PIIGS 3 year debt refinancing needs around €2 trillion

• Goldman + JPMorgan had PERFECT trading quarter

• Around 60% of NYSE volume is ‘program trading’

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Diminishing Marginal Productivity of Debt in the US Economy (in Dollars)

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US Mortgage Resets

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G.A.T.A

GOLD ANTI-TRUST ACTION COMMITTEE

• Short-selling paper vs physical

• Central Bank leasing + swapping

• Throwing light on esoteric subjects

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Gold in

Source: Bloomberg

£

€

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Gold + DXY (Dollar Index)

Source: Bloomberg

9Source: Bloomberg

Gold vs NASDAQ Secular Bull Market Comparison

25.5%

8.0%

17.1%2.2% 5.4%

4.4%

7.3%

30.1%

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1966: “In the absence of the Gold Standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value... deficit spending is simply

a scheme for the confiscation of wealth. Gold stands in the way of this insidious process.”

2009: “The rise in gold and silver is strictly a monetary phenomenon and is an indication of the very early stage of an endeavour to move away from paper currencies’.”

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Alan Greenspan Quotes

25.5%

8.0%

17.1%2.2% 5.4%

4.4%

7.3%

30.1%

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Monetary Star Wars

‘Buy Gold’

‘Audit the Fed’

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Why Silver ?

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Gold/Silver Availability