Interview with Ben Davies
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At the beginning of February Will Bancroft, from The Real Asset Co, interviewed one of the best known portfolio managers in the gold and silver markets, Ben Davies. Ben is a regular on CNBC, Bloomberg and the financial news wires where his opinions on the future gold and silver prices are sought after.
Ben is Co-Founder and CEO of Hinde Capital, and is one of the best known commentators on the markets and global economy, having previously been a professional trader in the fixed income markets. He previously ran trading for RBS Greenwich Capital in London, where he managed a macro portfolio. Ben’s fund is focused on the precious metals, mostly gold bullion, with an allocation towards silver bullion and the mining shares.
The Real Asset Co visited Hinde Capital’s offices in the City of London to get Ben’s thoughts on a range of issues affecting investors today. Watch the interviews below to hear his current macro opinions, his personal journey into the gold and silver markets, and to hear how he manages his own money.
PART 1: Default, debt restructuring and the year ahead (shown above).
In part 1 of the interview Will picks up on the theme of default within some of Hinde Capital’s recent research, and the current situation in Europe. Ben gives his opinions on the likelihood of default in Greece and the options for Greece and the wider Eurozone more generally. The discussion touches on technical elements regarding what constitutes a ‘credit event’ and the role of Credit Default Swaps (CDS) in the current turmoil. Within the discussion of CDS the conversation discusses the role of the International Swaps and Derivatives Association (ISDA) in relation to some concerns raised about ISDA by another gold market heavyweight, James Sinclair, in recent weeks. Gold and silver investors may be particularly interested to hear Ben’s thoughts on the structural flaws in the financial system, and what can be done to ‘let the air out of the system’.
PART 2: Focus on the gold and silver markets.
In part 2 of the interview Will asks Ben how he made the journey from a bond trader and manager of a trading desk, at the heart of the mainstream financial world, to a hardened believer in gold, silver and the Austrian school of economics. Ben discusses Alan Greenspan, the undermining of the Taylor Rule, and how he made the intellectual journey to an advocate of sound money and a more structurally sound foundation of the financial system. Ben discusses a few notable writers who he found along this road, including Ferdinand Lips and his seminal book on gold – ‘Gold Wars’, who opened his mind to a different school of economic thought. Ben also volunteers his libertarian leanings, and his opinions that ultimately markets and economics is about people and need to have this human perspective. Finally Will and Ben consider where in the world moves towards sound money might be gaining momentum, where China fits into this picture, and how the internet could be the game changer for a new payments system involving gold.
PART 3: About Hinde Capital and Mr Davies’ personal portfolio.
In part 3 of the interview Ben talks about the evolution of Hinde Capital, when the asset management business started in 2007, and how the fund was and is currently structured now. The failure of MF Global has apparently put the structure of Hinde Gold Fund into positive focus with investors seeking a secure and reputable structure. Crucially Ben goes into detail about how his fund has out-performed the gold price since its inception, and how Hinde has sought to build its brand. Ben even takes a moment to talk about using social media, specifically twitter, in managing his business and answers a question that came from the Twittosphere about how he manages his own money and what percentage of his net wealth he keeps in physical gold bullion.
To watch more of our interviews about gold, silver, sound money and the economy visit our YouTube Channel.
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Please Note: Information published here is provided to aid your thinking and investment decisions, not lead them. You should independently decide the best place for your money, and any investment decision you make is done so at your own risk. Data included here within may already be out of date.