Objective Capital Precious Metals, Diamonds and Gemstones Investment Summit A Fund Manager's View of Precious Metals 20 May 2010 by Ned Naylor-Leyland - Cheviot Asset Management

1. PRECIOUS METALS,
DIAMONDS & GEMSTONES
INVESTMENT SUMMIT
9.30 – 10.00
A Fund Manager's View of Precious Metals
Ned Naylor-Leyland – Investment Director,
Cheviot Asset Management
THE LONDON CHAMBER OF COMMERCE AND INDUSTRY ● THURSDAY, 20 MAY 2010
www.ObjectiveCapitalConferences.com

2. Precious Metals, Diamonds and Gemstones
Investment Summit
Ned Naylor-Leyland
Cheviot Asset Management
20th May 2010
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3. ARE YOU A…
A
GOLDBUG CONSPIRACY THEORIST
B
PAPERBUG COINCIDENCE THEORIST
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4. 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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5. Diminishing Marginal Productivity of
Debt in the US Economy (in Dollars)
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6. US Mortgage Resets
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7. 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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8. Gold in
£
€
Source: Bloomberg
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9. Gold + DXY (Dollar Index)
Source: Bloomberg
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10. Gold vs NASDAQ
Secular Bull Market Comparison
Source: Bloomberg
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11. Alan Greenspan Quotes
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’.”
25.5% 30.1%
8.0%
7.3%
4.4%
17.1% 5.4%
2.2% 10
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12. Monetary Star Wars
‘Buy Gold’
‘Audit the Fed’
25.5% 30.1%
8.0%
7.3%
4.4%
17.1% 5.4%
2.2% 11
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13. Why Silver ?
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14. Gold/Silver Availability
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