This week’s guest is Charlie Morris, the Chairman and Founder of ByteTree.com; an analysis site for bitcoins.
“In 1999 – seems like an age ago – I attended a presentation on gold by John Hathaway from Tocqueville Asset Management. Back then gold was trading under $300; a price not seen for two decades.
John put up several charts that put gold into its historical context. From these I could see that gold has always kept its long-term value and was a safe haven during tough times. In the heady days of the dotcom boom people began to worry it would all end in tears. It did, and gold started a bull run.
In those days it was difficult to invest in gold. Exchange traded funds for gold didn’t start appearing until 2003. Without those there was no way for a professional investor to invest in gold, other than futures and gold mining shares.
Then I met Graham Birch, who managed the Merrill Lynch Gold and General Fund (now part of Blackrock). He made a series of compelling arguments including that central banks would stop selling their gold reserves (they have); predicting lower interest rates (which has happened); and a recovery of sentiment in the sector (that has also happened). Gold mining shares were undervalued, he said, and would rise – and even more so when the gold price took off.
When the dotcom crash happened there was a scramble to sell these formerly highly-rated companies. Anything tangible, such as gold, proved its worth. Since then gold has become the cornerstone of my investment philosophy.”
Sign up to get the latest Glint news
Receive the GLINT newsletter with the most popular content, platform updates and software guides.