Jayant Bhandari on Gold, Submerging Markets and Arbitrage

Maurice Jackson Interviews Jayant Bhandari

We are happy to present another interview conducted by Maurice Jackson of Proven and Probable with our friend and frequent contributor Jayant Bhandari, a specialist on gold mining investment, the world’s most outspoken emerging market contrarian, host of the highly regarded annual Capitalism and Morality conference in London and consultant to institutional investors.

1. An overview of a recent speech he delivered in London entitled “Gold in India: Current Market Dynamics and Future Opportunities” (Indian street prices of gold are 10% above prices elsewhere in the world, but they should be even higher – why is that so?)
2. Recent political developments in India, where cows (which are considered sacred animals by many people) have become more popular than seems to be good for anyone walking on fewer than four legs.
3. The increasingly dire situation in another submerging market, namely South Africa.*
4. A developed market that seems set on becoming a submerging market, namely British Columbia in Canada. After an election in early May delivered a hung parliament, the province is threatened by a shift to the political left, with socialists and greens joining forces to form an authoritarian watermelon. A long list of outrageously absurd anti-free market policies are now hanging like the sword of Damocles over what was up until now the fastest growing region in the fastest growing G7 economy. Billions in planned investments in energy projects are inter alia at risk (those of the economically viable sort, not the cronyism and theft that is euphemistically referred to as “alternative” energy).**
5. Recent arbitrage opportunities developing in gold mining stocks.
6. A reminder regarding this year’s Capitalism and Morality conference, which will host numerous very interesting speakers – there is still time to register.***

Maurice Jackson speaks with Jayant Bhandari

* Here is a link to a previous interview of Jayant by Maurice on the topic of submerging markets: “Buyer Beware”.

**As an aside to this, a delicate detail is that British Columbia is also home to the infamous Vancouver property bubble, which the watermelons have sworn to rein in. That may sound like a commendable idea in principle, until you find out how they want to go about it – they simply plan to raise taxes further. How very original!

*** Other links referred to in the interview:

Jayant’s web site

Schedule, details and registration link for this year’s Capitalism & Morality conference in London on July 29, 2017.

Bonus Chart: Real Estate Insanity up North

A price chart illustrating the enormity of the Vancouver housing bubble, which has recently exhibited rather stunning volatility – often a sign that the big denouement is close. It probably doesn’t really matter what anyone does or doesn’t do about it at this stage… but if the watermelons hasten its demise, they are bound to inadvertently become the “owners” of the debacle.

Real Average Sale Prices 1977-2017

- Click to enlarge