Lars Schall, an independant financial journalist from Germany, interviews high profile Canadian financial analyst and investment manager Marshall Auerback on behalf of Matterhorn Asset Management / GoldSwitzerland. This Podcast Video has a total length of 27 minutes.
By Lars Schall
The following podcast interview was conducted for and published by GoldSwitzerland in Zurich here.
Marshall Auerback says that the environment of currency wars and competitive currency devaluations will make the gold market a very interesting subject to follow in the years to come. According to him, only very few people understand the gold market – be it in economics or the financial press. He outlines how he became involved in the gold market at the end of the 1990′s during his work for Frank Veneroso, and that it was clear back then what a great investment gold would be in the following years. Auerback believes that the recent price plunge came about because of a “collusion” between bullion banks and some big hedge funds. He does not believe that gold is in a bubble before it reaches the level of $3000. Instead, he assumes that physical gold, silver and the good mining stock companies still represent excellent investment opportunities. Moreover, he states that interventions are taking place in all kinds of markets. Furthermore, he addresses the gold policy of countries such as Italy, China and Germany. With regards to the latter, he is certain that the Deutsche Bundesbank is preparing the terrain for the time after the euro.
The podcast discussion is based on the following questions:
Does the profession of economics understand gold fairly well?
How about the financial press?
Is the gold market a free market?
Why are mining stock companies both in gold and silver having a hard time?
What’s your analysis of the recent hit that the prices of gold and silver took?
Was this a natural market event?
What things have to be in place before you talk about a bubble in gold?
Why would you say that gold is still cheap?
Where do you see silver heading?
Will the volatility both in gold and silver increase in the years to come?
How do you think about the management of the dollar by the US government / the US Federal Reserve?
Has the Bank of Italy all the gold that it claims to have?
What are your thoughts on China’s gold policy?
How do you think about the fact that the Bundesbank announced that it wants to repatriate some of its gold holdings at the NY Fed and all of its gold from the Banque de France?
Do you think that gold will become a prime form of money in international trade in years to come?
Marshall Auerback, born July 27, 1959 in Toronto, Canada, is familiar with the international scenery of finance firsthand. After graduating “magna cum laude” in English and Philosophy from Queen’s University in 1981 and receiving a law degree from Corpus Christi College, Oxford University, two years later, he was from 1983-1987 an investment manager at GT Management Ltd. in Hong-Kong.
From 1988-91, Mr. Auerback was based in Tokyo, where his Pacific Rim expertise was broadened to include the Japanese stock market. In 1992 he went to New York to ran an emerging markets hedge fund for the Tiedemann Investment Group until 1995. The next four years he worked as an international economics strategist for Veneroso Associates, which provided macroeconomic strategy to a number of leading institutional investors.
From 1999-2002, he managed the Prudent Global Fixed Income Fund for David W. Tice & Associates, a global investment management firm, and assisted with the management of the Prudent Bear Fund. Since 2003 he was serving as a global portfolio strategist for RAB Capital Plc, a UK-based fund management group. He was also co-manager of the RAB Gold Fund and has been an independent economic consultant for PIMCO, the world’s largest bond fund management group.
He is now the Director of and Corporate Spokesperson for Pinetree Capital Ltd, a Toronto-headquartered diversified investment, financial advisory and merchant banking firm focused on investing in early stage micro and small-cap resource companies. Pinetree, which has a market cap of $439 million, is invested primarily in Uranium and Coal, Oil & Gas, Precious Metals, Potash, Lithium and Rare Earths and Base Metals.
Moreover, he is a fellow of the Institute for New Economic Thinking (www.ineteconomics.org/), Economists for Peace & Security (www.epsusa.org), and of the Japan Policy Research Institute in California (www.jpri.org). He’s also associated with the New Economic Perspectives blog of the University of Missouri-Kansas City (UMKC – see: http://neweconomicperspectives.org/). At present, Mr. Auerback lives in New York City, U.S.A.