London’s BullionVault, an Agora friend and possible partner/affiliate, and, so far as I know, a very reputable firm has recently announced that the World Gold Council and Augmentum Capital (backed by Jacob Rothschild’s RIT Capital) has bought stakes in it, in return for a 12.5 million P. investment. I must say I’m not too happy about the news and may look into James Turk’s Gold Money as an alternative. The World Gold Council has been an integral part of the gold-suppression scheme that is at the heart of the financialization of the economy from 1970 onward. (Full disclosure: I have an account at BV).
Note (added, June 24): No criticism is meant of anyone at BullionVault, which, from personal experience, I’ve found to be reliable, courteous, and efficient. No criticism is meant of Adrian Ash, the affable and insightful head of BV’s research desk and former Daily Reckoning city editor.
From the UK Telegraph:
“Tim Levene of Augmentum Capital, a fund backed by Lord Rothschild’s RIT Capital Partners, said the investment was not a bet on the gold price but on “the future growth of the BullionVault platform”, which stores physical gold for private clients in London, New York and Zurich. RIT currently has 9pc of its assets in physical gold.
Investment demand for the metal has risen on concerns that sovereign debt problems could spread and the value of currencies plunge. The gold price hit a new nominal all-time high above $1,260 on Friday and analysts expect the price will continue to rise.
In return for the £12.5m investment, the World Gold Council and Augmentum will receive an equity stake in BullionVault. Marcus Grubb, managing director of investment at the World Gold Council, said taking the BullionVault stake was part of the Council’s strategy of “increasing its portfolio of successful platforms for gold investment”. Mr Levine and Mr Grubb will join BullionVault’s board.
BullionVault has about $800m (£540m) of gold under management for 20,000 customers from more than 90 countries. The average holding is around £30,000.
The World Gold Council’s previous investment vehicle, a gold exchange-traded fund, now has 1,306 tonnes of the metal under management, worth $52.3bn. This makes it the world’s second-largest exchange-traded fund. If the fund was a central bank, it would be sixth largest in the league table of gold holders.”