Monthly Review – May 2023
As we write this month’s commentary, we appear to be on the verge of either the unimaginable reality of a US default, or an increase in the US debt ceiling. We hope that it will be the latter. Whilst we believe balancing a budget is important, whether you are a household or a nation, we also know that politicians are rarely willing to make tough decisions, as these might just cost them their jobs! So, rather than increasing taxes or cutting spending, we expect the most likely outcome to be more of the same……namely more money printing. Under the circumstances a devaluation of the US Dollar is most likely, and probably not for the last time either. Where the US leads many have been tempted to follow, so we should not be surprised if other developed economies head down the same inflationary path.
This brings us to our topic this month: Gold!
We have just released a podcast (listen here) discussing its value(s) and characteristics, but suffice to say the three pillars of our Gold-thesis are:
1. A store of value whilst central banks and governments around the world continue to devalue currencies whose intrinsic value is ultimately based on trust (fiat!),
2. A provider of insurance amidst the rising risks of increasing geopolitical tensions as the two biggest global powers continue to lock horns, and
3. A provider of liquidity as asset values – from equity markets to commercial real estate – potentially take a plunge later this year!
As for the debt ceiling, we believe the true risk lies not in a US default…this will merely be a technicality…but in the nature of our escalating reliance on debt and the very meaning of fiat…Trust!
History shows that when Trust is in short supply Gold tends to outperform…and right now Trust, in both the fractional reserve banking system and the fiat currencies that underpin it, are definitely in short supply!
To continue reading… please download the PDF above to access and read the full article.
CONTACT US
For further information on any of our services, or if you would like to arrange a meeting with an investment manager to see how we can work with you, please get in touch.
LeifBridge Investment Services
Shard Capital Partners
Floor 6, 51 Lime Street
London, EC3M 7DQ
United Kingdom
Telephone: +44(0)20 7186 9900
Email: Info@Leifbridge.com
www.leifbridge.com
Disclaimer:
We try to ensure that the information provided is correct, but we do not give any express or implied warranty as to its accuracy. We do not accept any liability for errors or omissions. The content of this brochure is for guidance purposes only and does not constitute financial or professional advice.
IMPORTANT INFORMATION
LeifBridge is a trading name of Shard Capital Partners LLP. Shard Capital Partners LLP is a limited liability partnership, registered in England with registration number OC360394. Shard Capital Partners LLP Registered office:36-38 Cornhill, London, EC3V 3NG.. Shard Capital Partners LLP is authorised and regulated by the Financial Conduct Authority in the United Kingdom, reference number 538762.
This document is provided for information purposes only and is intend for confidential and sole use by the recipient. It is not to be reproduced, copied or made available to others. The information set out in this document does not constitute investment advice or a personal recommendation. The views expressed in this document are not intended as an offer or a solicitation, to purchase or sell any security or other financial instrument, credit or lending product or to engage in any investment activity.
Past performance is not a guide to future performance. It is important that you understand that with investments, your capital is at risk. The value of investments, as well as the income derived from them, can go down as well as up and investors may get back less than the original amount invested. It is your responsibility to ensure that you make an informed decision about whether to invest with us, based on your particular objectives. If you are still unsure if investing is right for you, please seek independent advice.
The information and opinions expressed within this document are the views of (the company) and are based on information we believe to be reliable, but we do not represent that they are accurate or complete, and they should not be relied upon as such. Any information provided is given in good faith but is subject to change without notice.
No liability is accepted whatsoever by (the company) or its employees and associated companies for any direct or consequential loss arising from this document.
.png)