The newsletter is a roundup of financial news, investment status, and other financial trivia, giving you the insight you need to manage your money in any economic situation.

Pension funds in trouble?

• Pension funds that have invested in private equity are experiencing problems with payouts. Initially, managers promised high returns after a decade, but payouts have fallen, causing financial problems for the managers who look after workers’ pension savings. To maintain payouts, they resort to selling investments at lower prices or to borrowing, which has a negative impact on returns
• To solve liquidity problems, some pension funds sell their stakes in private equity funds on the secondary market, often incurring financial losses. Others are borrowing to raise cash, while some managers are receiving payouts from loans they have taken out to meet cash needs.

How will these problems be visible in the expected “sobering up” of equity markets?

Source: WSJ

Only 1% in raw materials. Family Offices’ Family Office, delayed…

• US Family Offices currently spend only 1% of their funds on commodities, including gold. Long periods of neglect of natural resource sectors often herald the emergence of secular opportunities. This is particularly true in an increasingly de-globalised environment, characterised by severely constrained supply and a gradual build-up of structural demand from central banks, traditional 60/40 portfolios and other large capital allocators.
• What does the pseudonym “Family office” mean? It is a special private company that caters for the financial and investment needs of high net worth families. The main purpose of Family Offices is to preserve and increase family wealth over several generations.

Source: Tavi Costa

Singapore becomes a gold trading hub

Singapore is set to become a leading hub for gold trading as the trade moves eastwards, according to the World Gold Council. One of the key reasons is the growing consumption of gold in large emerging economies, with most of these markets concentrated in Asia. Another factor is Singapore’s proximity to these central banks, which are actively buying gold.

Gold production Q1 2024 – Cube with a side of 2.34 m

A stunning visualisation… The top 16 gold producers produced 7.97 million ounces (Moz) of gold in Q1 2024. 8 million ounces of gold = approx. 250 tonnes of gold.

Source: MiningVisuals

Silver – Supply and demand comparison in picture (2015-2024)

We have seen a silver deficit for 4 years now, and it can only get worse. Overnight production cannot compensate for demand, which is visibly increasing.

Source: Twitter

Silver production Q1 2024 – Cube with side 6 m.

Visualisation of the total amount produced (includes the 16 leading silver producers in the world). 86.2 million ounces of production = approx. 2,700 tonnes of silver.

Source: MiningVisuals

Total mineral demand for clean energy technologies by scenario

No matter how things turn out, the world will need a very large amount of minerals… Electricity grids, energy storage and electric vehicles will need a huge amount of raw materials. In any scenario.

Source: minenergybiz

Evolution of the 20 dollar bill

Are you also experiencing a loss of purchasing power of money? The shopping trolley for e.g. €20 is not empty, but it is much emptier than in previous years.

The newsletter “Financial insights and trivia” does not constitute an investment advisory service. Its content does not constitute recommendations to buy or offers to buy, but is intended to inform the public about developments in the financial field. Past returns are not a guarantee of future returns. Please consult a financial adviser for advice.