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Has A Global Gold Power Shift Begun? + Net Zero Comes For Our Wallets · The Bullion Advantage | Wealth Protection, Politics and Finance Insights From The #1 UK Gold Dealer

• 0:00
  SPEAKER_01: Domination of the gold market.
• 0:03
  SPEAKER_01: For decades, the West has been in control.
• 0:06
  SPEAKER_01: London and New York have played central roles in setting the price of gold, while much of the world's financial system has revolved around paper assets and fiat currencies.
• 0:15
  SPEAKER_01: But that balance of power may be starting to shift.
• 0:18
  SPEAKER_01: Across Asia, governments and major financial institutions are suggesting that gold could be about to play a much bigger role in the global economy.
• 0:27
  SPEAKER_01: Hong Kong has launched a new gold clearing system with Singapore not far behind.
• 0:31
  SPEAKER_01: Together, they could challenge the way gold has been traded and priced for generations.
• 0:37
  SPEAKER_01: If that happens, it could have major repercussions for everyone everywhere.
• 0:42
  SPEAKER_01: We'll also examine the latest concerns surrounding Labour's economic agenda, including claims that higher taxes, rising business costs, and net zero policies are placing increasing pressure on the UK economy and what that could mean for your pockets in the months and years ahead.
• 0:58
  SPEAKER_01: By the end of this episode, you'll understand what gold clearing systems could mean for you, why Asia is becoming the driving force behind the global gold market, and what that could mean for the future price of gold, your wealth, and your financial future.
• 1:12
  SPEAKER_01: Before we begin though, please do remember to like and subscribe if you're listening on YouTube and if you're listening on Spotify or Apple Podcasts, please do follow the show so you never miss an update.
• 1:22
  SPEAKER_01: Jack's here to break all this down.
• 1:24
  SPEAKER_01: Jack, thanks so much for joining me again on the Bullion Advantage.
• 1:27
  SPEAKER_01: Thanks, Jake.
• 1:28
  SPEAKER_01: Thanks for coming back on.
• 1:29
  SPEAKER_01: First things first though, what exactly is a financial clearing system?
• 1:33
  SPEAKER_00: A gold clearing system is essentially a financial infrastructure for institutional gold trades and related financial transactions just between institutions.
• 1:43
  SPEAKER_00: Right.
• 1:48
  SPEAKER_00: I see.
• 1:48
  SPEAKER_00: If you can just think of it as plumbing that allows gold to move efficiently through the financial system, essentially.
• 1:54
  SPEAKER_01: That's a good that's a good analogy.
• 1:56
  SPEAKER_01: Why why exactly are they implementing this though?
• 1:59
  SPEAKER_00: It's massively well, clearly the Chinese believe that a lot of gold is expected to be traded in the coming years.
• 2:05
  SPEAKER_00: Right.
• 2:06
  SPEAKER_00: At the very least, they want to be the regional hub for that trade, if not the global one.
• 2:10
  SPEAKER_00: Hong Kong is not only the regional player attempting to play such a role, Singapore also intends to set up its own clearing system by the end of the year they're planning on.
• 2:20
  SPEAKER_00: This has implications for us as retail buyers in the West because whatever jurisdiction does eventually win that race will automatically gain the ability to set the price of gold, and that has never been the case in our lifetime.
• 2:31
  SPEAKER_01: How quickly do you think this transition from West to the East could happen?
• 2:35
  SPEAKER_00: It's already happening, Jake.
• 2:37
  SPEAKER_00: Right.
• 2:37
  SPEAKER_00: It will likely take years, but it's more about the momentum.
• 2:40
  SPEAKER_00: The momentum is building faster than a lot of people expected.
• 2:44
  SPEAKER_00: So it will it will take a few years, but it is happening.
• 2:47
  SPEAKER_01: What would it mean if Asia became the primary centre of global gold trading?
• 2:52
  SPEAKER_00: It could fundamentally mean, Jake, who sets the gold price?
• 2:55
  SPEAKER_00: Right.
• 2:55
  SPEAKER_00: Obviously, just pushing more towards London and obviously the USA's dominance in doing so.
• 3:00
  SPEAKER_01: Why is that ability to influence gold pricing so valuable?
• 3:04
  SPEAKER_00: Just because gold creates a strong foundation for central banks, financial power globally, and all of the big institutions.
• 3:13
  SPEAKER_01: So just following on from that, are these possibly the early signs of a more gold-backed financial system then?
• 3:19
  SPEAKER_00: It's been talked about for a long time.
• 3:21
  SPEAKER_00: Every year it seems that there's more talk.
• 3:23
  SPEAKER_00: So I'd say that every year, every day that goes by, we're definitely getting closer.
• 3:27
  SPEAKER_01: Yeah.
• 3:27
  SPEAKER_01: What developments would you look out for then to see whether the shift is maybe speeding up or happening in real time?
• 3:33
  SPEAKER_00: I'd say the first one would just be to watch the amount that the banks are buying.
• 3:37
  SPEAKER_00: Right.
• 3:37
  SPEAKER_00: We're seeing banks buying more gold than ever.
• 3:40
  SPEAKER_00: I read somewhere they're buying about 240 tons every quarter.
• 3:44
  SPEAKER_00: Wow.
• 3:44
  SPEAKER_00: Now, as we know, these are the institutions that push the price up.
• 3:48
  SPEAKER_00: Us as retail buyers don't make that much of a difference.
• 3:51
  SPEAKER_00: So I think it's it's key to follow what the central banks are doing because I think we can all agree they would know a little bit more than us as normal people.
• 3:58
  SPEAKER_01: Do you think this is strengthening the case for owning physical gold right now, then?
• 4:03
  SPEAKER_00: A hundred percent.
• 4:04
  SPEAKER_00: Just because people buy gold to try and cut out third party risk or counterparty risk.
• 4:10
  SPEAKER_00: Yeah.
• 4:10
  SPEAKER_00: Just because you're buying something that you have sole ownership of, uh, you're not relying on numbers on screens or anything like that.
• 4:16
  SPEAKER_00: So it's always been a preservation tool during uncertain time.
• 4:21
  SPEAKER_00: So I would say yes.
• 4:22
  SPEAKER_01: So a lot of the viewers will want to know in real time what exactly is going on with the gold market at the moment.
• 4:28
  SPEAKER_00: Yeah, so we we've had a bit of a retracement.
• 4:30
  SPEAKER_00: Uh we're about 30% off the last record high.
• 4:33
  SPEAKER_00: Now, a lot of people are seeing that as a bit more of an opportunity.
• 4:37
  SPEAKER_00: Just because if you look historically, gold has never hit a record high in the past and then not surpassed it afterwards.
• 4:44
  SPEAKER_00: Yeah.
• 4:44
  SPEAKER_00: So yes, it's come down slightly.
• 4:45
  SPEAKER_00: If a lot of people just see it as a bit of a saving, all the while the banks are still buying the amount of gold they're buying, it's like curling, isn't it?
• 4:53
  SPEAKER_00: Yeah, the long-term trajectory still looks very fruitful.
• 4:56
  SPEAKER_00: That's why we're inundated, we're really, really busy.
• 4:59
  SPEAKER_00: Yeah, people are seeing this as an opportunity to make a bit of a saving because people aren't buying gold to buy it today and sell it in a couple of weeks' time.
• 5:08
  SPEAKER_00: These are long-term preservation of wealth.
• 5:11
  SPEAKER_00: So if you're holding for five or ten years, for example, and you can make a 30% saving, why would you not?
• 5:17
  SPEAKER_01: Exactly.
• 5:18
  SPEAKER_01: And following on from that, do you think there is a risk of maybe waiting too long because they're hoping for an even lower price, or just maybe scared of the little retraction that we've had recently?
• 5:28
  SPEAKER_00: Yeah, I think well, the best way to look at it is nobody in any financial market has ever caught the bottom.
• 5:34
  SPEAKER_00: No, likewise, they've never caught the top.
• 5:36
  SPEAKER_00: No, so true.
• 5:37
  SPEAKER_00: That's why we'd always say do what you're comfortable with, hold it for a medium to long term, just because that's what gold's for, because it's averaged about 15% year on year.
• 5:45
  SPEAKER_00: Yeah.
• 5:45
  SPEAKER_00: Yes, it's had a retracement, but all that is and all people are seeing is that as an opportunity.
• 5:50
  SPEAKER_01: Opportunity, yeah.
• 5:51
  SPEAKER_01: Are there any particular coins or bars that are proving most popular with our clients at the moment?
• 5:56
  SPEAKER_00: As a general rule of thumb, in our experience, British coins will always be the king.
• 6:01
  SPEAKER_00: Yeah.
• 6:01
  SPEAKER_00: Uh no pun intended.
• 6:03
  SPEAKER_00: Just because VAT free, capital gains tax-free, it's the most tax-efficient way to own a physical asset that you can take delivery of, that's always been there when times are uncertain or anything like that.
• 6:15
  SPEAKER_00: So we would always say our most popular product is British gold coins.
• 6:19
  SPEAKER_01: Right.
• 6:20
  SPEAKER_01: Let's turn our attention back to the UK because another story has caught my attention this week.
• 6:24
  SPEAKER_01: A recent GB News report has highlighted growing concerns over Labour's economic agenda.
• 6:29
  SPEAKER_01: With critics arguing that higher taxes, rising business costs, and net zero policies, this could easily make Britain a much more expensive place to do business.
• 6:38
  SPEAKER_01: At a time when economic growth is slow and public finances are already under pressure, people are asking legitimate questions about what these policies could mean for businesses, jobs, and ultimately us as taxpayers.
• 6:50
  SPEAKER_01: With this in mind, how do higher business costs eventually affect ordinary households and people like us?
• 6:56
  SPEAKER_00: Well, businesses always pass higher costs on through increased prices, right?
• 7:00
  SPEAKER_00: Yeah.
• 7:01
  SPEAKER_00: When they get charged more, we get charged more, there might be fewer jobs available, more cut wages.
• 7:07
  SPEAKER_00: So it always, always ends with the consumer.
• 7:10
  SPEAKER_01: It just seems really counterintuitive to me.
• 7:12
  SPEAKER_01: Do you think Britain is becoming less competitive compared with other countries, maybe in Europe or or around the world, maybe?
• 7:18
  SPEAKER_00: In terms of investment, I'd say so, because there's lots of speculation, but it's not even speculation anymore, around where you can or can't invest your money that's in ISIS.
• 7:29
  SPEAKER_00: So there's further tax implications if you're not invested into what a lot of people call a risk-on area.
• 7:35
  SPEAKER_00: So they essentially are pushing you to invest in the UK economy.
• 7:39
  SPEAKER_00: Yeah.
• 7:39
  SPEAKER_00: But you have to hand pick your stocks now, otherwise you incur a 22% tax on your cash sat in your ISIS.
• 7:46
  SPEAKER_01: And with the topic of net zero ramping up, do you think there is a significance that our energy costs could come into this topic as well?
• 7:53
  SPEAKER_00: Yes.
• 7:54
  SPEAKER_00: Now I'm not surprised.
• 7:55
  SPEAKER_00: It's a tricky one because what month are we in?
• 7:59
  SPEAKER_00: We're in July, which means it's hot.
• 8:01
  SPEAKER_00: Yes.
• 8:02
  SPEAKER_00: So what we're gonna do, every single household when it starts cooling down, when we get to winter, is going to get a big shock.
• 8:07
  SPEAKER_01: Yeah.
• 8:08
  SPEAKER_00: Because we haven't been utilising our heating in the summer because we just don't need to.
• 8:12
  SPEAKER_00: Well, of course.
• 8:13
  SPEAKER_00: We haven't been paying for it, and that's why the energy costs have gone up, but we just haven't seen that yet.
• 8:18
  SPEAKER_00: So the real telltale sign will be when it starts cooling off and we need to try and heat our homes again.
• 8:22
  SPEAKER_01: Yeah, it could be a big shock.
• 8:24
  SPEAKER_01: For someone trying to protect their wealth now in Britain today, what practical lessons should they take from this conversation we're having today?
• 8:31
  SPEAKER_00: Uh I'd say hold something tangible.
• 8:33
  SPEAKER_00: Um, obviously, we're not financial advisors of any sort, but just hold something tangible.
• 8:37
  SPEAKER_00: A lot of people like tax efficiency.
• 8:39
  SPEAKER_00: Yeah.
• 8:39
  SPEAKER_00: That's why we spoke about British gold coins earlier, just because it'll be tangible.
• 8:43
  SPEAKER_00: You can take delivery of it, you can hold it, and it's VAT and capital gains tax-free.
• 8:47
  SPEAKER_00: So I think every savings tool starts with tax efficiency, right?
• 8:51
  SPEAKER_01: Yeah, absolutely.
• 8:52
  SPEAKER_01: Bringing our discussion back to the main topic, the Asian gold story, what are both these things pointing towards, do you think?
• 9:00
  SPEAKER_00: In really simple terms, Jake, it's just heading towards a world where economic power is just shifting east, governments are facing growing fiscal pressures, and people are just increasingly looking for hard assets like gold, just for stability, really.
• 9:14
  SPEAKER_01: Just got a listener question from last week's episode of the podcast to ask you.
• 9:19
  SPEAKER_01: This is about tokenized gold, which was the topic of last week's podcast.
• 9:23
  SPEAKER_01: If you haven't listened to it, please do go back and do that.
• 9:26
  SPEAKER_01: But the question is from Ashley Jewell, and it is would it be the modern version of paper gold?
• 9:32
  SPEAKER_00: In a way, yes.
• 9:34
  SPEAKER_00: It's quite easy to misconstrued paper gold and tokenized gold.
• 9:39
  SPEAKER_00: Right.
• 9:39
  SPEAKER_00: Just because there's a bit of a grey area of whether it's allocated or unallocated, meaning that the money that you put into that is allocated to a gold bar, for example, as opposed to a share of a gold bar.
• 9:52
  SPEAKER_00: Right.
• 9:52
  SPEAKER_00: So that's great in theory, but in practice, if everyone decides to sell their shares at the same time, there's not enough gold to back that, if that makes sense.
• 10:01
  SPEAKER_00: Yeah.
• 10:01
  SPEAKER_00: So that's why people will look at something physical that they can just buy and own, take delivery of, uh, just to cut out that counterparty risk.
• 10:09
  SPEAKER_01: Absolutely.
• 10:09
  SPEAKER_01: Like we said last week, owning the physical asset is definitely a more preferable way to go, and in our humble opinion.
• 10:15
  SPEAKER_00: Definitely for a lot of people, just because safety is the biggest thing these days.
• 10:18
  SPEAKER_01: Yeah, exactly.
• 10:19
  SPEAKER_01: Exactly that.
• 10:20
  SPEAKER_01: As we've discussed throughout today's episode, the global gold market is definitely changing.
• 10:25
  SPEAKER_01: For decades, London and New York have dominated the trade in physical gold, but developments in Asia suggest the balance of power could be shifting, with countries like Hong Kong and Singapore positioning themselves at the centre of what many believe could be the next chapter in gold's history.
• 10:40
  SPEAKER_01: At the same time, Britain continues to face significant economic challenges, rising costs, pressure on public finances, and ongoing debate over taxation.
• 10:50
  SPEAKER_01: This all serves as a reminder that the decisions made by governments and financial institutions can have a direct impact on our wealth.
• 10:58
  SPEAKER_01: One of the biggest things to remember from today's discussion is that while financial systems continue to evolve, the fundamental characteristics that have made gold valuable for thousands of years haven't changed.
• 11:09
  SPEAKER_01: Physical gold doesn't rely on government's promise, a bank's balance sheet, or a digital platform.
• 11:16
  SPEAKER_01: It's tangible and you can own it directly.
• 11:18
  SPEAKER_01: That's one of the many reasons it continues to play such an important role in wealth protection.
• 11:23
  SPEAKER_01: The global gold market isn't standing still, and neither are the countries shaping its future.
• 11:28
  SPEAKER_01: Keeping an eye on these developments could prove just as important as watching the price itself.
• 11:33
  SPEAKER_01: For more information, please do head over to guide.directbullion.com, where you can pick up our guide to tax-free gold.
• 11:41
  SPEAKER_01: It's packed with information you won't get anywhere else.
• 11:44
  SPEAKER_01: Also, please do remember to like and subscribe if you're listening on YouTube and follow the show on Spotify or Apple Podcasts so you never miss an update.
• 11:53
  SPEAKER_01: As always, leave a question in the comments below and we'll answer them in the next episode.
• 11:58
  SPEAKER_01: Thanks so much for listening to the Bullion Advantage today.
• 12:00
  SPEAKER_01: Stay informed, stay prepared, and most importantly, stay golden.
• 12:05
  SPEAKER_01: The purchase of gold does not constitute an investment or offer financial returns.
• 12:10
  SPEAKER_01: Gold is considered a store of value and not an investment product.
• 12:14
  SPEAKER_01: Past performance of gold is not indicative of future performance.
• 12:17
  SPEAKER_01: Prices and values of precious metals can fluctuate and are influenced by various market factors.
• 12:22
  SPEAKER_01: Direct bullion does not provide investment or tax advice and recommends that you conduct your own independent research before making any purchasing decisions.