What is the ‘new normal’ going to be like? One of the consequences of the new uncertainty will, paradoxically, be a return to some of the neglected certainties of the past. Gold is one of those.
What just happened?
A global health threat turned into a global economic crisis. Over the past three months, major countries have collectively given away more than $12 trillion to rescue their economies. Rescuing jobs, protecting businesses, are of course very good things.
But the long-term cost for all of us will be heavy. This $12 trillion is borrowed money. The inevitable consequence of the massive new indebtedness in the global economy means many things. One of the most profound is that the purchasing power of your money may become very uncertain
Why is this?
The head of the OECD – the 14 nation Organisation for Economic Co-operation and Development – has warned that all this extra debt will “come back to haunt us.” In the UK for example the Treasury says that tax rises and government spending cuts are on the horizon if a sovereign debt crisis is to be avoided.
The Treasury estimates that the “base case scenario” for the UK’s budget deficit – the gap between what it gets in taxes and what it spends – is £337bn, more than double the annual deficit following the 2008 financial crash.
The economic stimulus is being done by monetary expansion (Quantitative Easing or QE). QE has many consequences but essentially it devalues fiat (paper) currencies; this could ultimately be inflationary, even if consumer price indices do not show it immediately. It is a kind of stealth inflation.
Some major companies (such as airlines) may have to be nationalised. Many small businesses may close. International travel will contract. The overall uncertainty will make consumers cut spending, increase their savings. Where to turn for some security amid all this mayhem?
Turn to Glint and gold
Glint gives everyone access to a whole new world of digital payments, using physical gold bullion which its clients own themselves, and which is held securely in the world’s largest precious metals’ vault.
Glint’s offer to everybody is the chance to maintain the value of their earnings and savings, through holding gold. The technological development that makes this possible is the internet, which is borderless, just as is gold.
As countries struggle to emerge from the global recession they may compete to stimulate exports by devaluing their currency, making their exports cheaper.
Competitive devaluation in a recessionary environment can create a vicious circle of beggar-thy-neighbour and a currency war, inviting retaliatory imposition of external tariffs, exacerbating poor economic performance and also risk hyperinflation at the same time. It could become a recurring theme this decade, as major economies battle slow growth and increasing deflationary pressures.
When money is being devalued consumers prefer to own real assets. Gold’s advantages over paper currencies is that it is universally accepted as a means of exchange; its price does not vary across borders; and it cannot be devalued at any government’s whim. It therefore has the characteristics of a truly global currency.
Glint makes this universal currency available to all via its app and prepaid debit Mastercard. Gold has thrived not just in inflationary periods, but in times of economic turbulence, policy uncertainty, and increased economic volatility including deflation. There have been two dominant themes over the past 50 years – investor preferences for new technology, and gold.
The winner is….
We believe oil and energy majors will diversify their earnings base and shift increasingly into renewables. A wider use of electric cars will cause demand to rise for base and precious metals, both key to electric vehicles; mining investment in those metals may lag the supply capacity required for the increased demand.
Pharmaceuticals will be recipients of much increased R&D grants and investments. In the new world normal Artificial Intelligence-related shares may gain traction.
This would be closely related to the computer industry; especially how closely digital computer technology can adapt to the workings of the human brain.
The combination of speed, responsiveness and reach, will unlock further potentialities in technology – self-driving cars, drones, virtual reality etc. – and telecoms. In the increasingly digitalised world the requirement for cyber security will increase.
Gold and digital technology combined in Glint
The 2020s will hasten the ongoing payments revolution. The era of the cashless society is unfolding before our eyes.
Increasingly the general public will move to convenient digital wallets for daily transactions, especially as P2P payment modes proliferate.
This revolution will come about thanks to the inventive technology companies, which facilitate secure and effortless payment methods through cards and mobile digital telephony.
Governments have always regarded gold as the ultimate reserve of money. They fight hard to retain control over their paper currencies.
But they cannot control gold.
Glint makes gold available to everyone; it is no longer the preserve and privilege of governments.
Glint makes that possible with its app and a prepaid debit card. Gold has thrived not just in inflationary periods, but in times of economic turbulence, policy uncertainty, and increased economic volatility including deflation. Times like these, in other words.
Protect the value of your money with gold. Glint it!