Insider outlook

The brightest minds answer the toughest questions

How do you think business confidence – a major issue in the US at the moment – has affected your performance?

James Burton, CEO, World Gold Council
Continued weakness in the dollar and uncertainty in global financial markets following the sub-prime mortgage crisis has resulted in widespread loss of investor confidence and a subsequent ‘flight to safety’ in the form of gold.  Investors flocked to gold in the latter half of last year, in fact total investment in gold in the fourth quarter of 2007 reached a record $8.1bn in dollar terms.

Nicolas Bang, MD and Partner, AC Markets
It seems that neither a decline in business confidence or global slowdown, has lessened the attraction of currency trading. In a certain sense, the pessimism that is affecting business confidence is actually highlighting our core business.

Richard Wellings, Institute of Economic Affairs
As confidence falls investment plans tend to be cut back, with a knock-on effect on other businesses. It may also be more difficult to obtain loans, exacerbating an already difficult situation brought about by the liquidity crisis in banking.

What are your thoughts on the future of the petro-dollar?

James Burton, CEO, World Gold Council
No comment

Nicolas Bang, MD and Partner, AC Markets
I believe the absolute dominance of petrodollars will come under pressure in the near term. Foremost will be the acceptance of euro along side US dollar...we may yet get use to the phrase petro-euros.

Richard Wellings, Institute of Economic Affairs
The reputation of the Federal Reserve for maintaining economic stability has been damaged by recent turbulence. Holders of dollar deposits have faced substantial losses as the currency’s value has plummeted.

If the recession continues, do you think people will stop caring about climate change and focus more on fundamentals?

James Burton, CEO, World Gold Council
Environmental sustainability has become deeply ingrained in people’s minds and considerations and I do not think this will lose momentum.

Nicolas Bang, MD and Partner, AC Markets
In the shorter term yes they certainly will, but longer term the climate change issue is a fundamental issue for everybody.

Richard Wellings, Institute of Economic Affairs
The boom of the late 1980s coincided with a rapid growth in public concern about environmental issues. The salience of these topics had indeed declined by the mid-1990s following the recession of 1990-92.

Are there any suggestions you would make to your current government to change/make your business more profitable?

James Burton, CEO, World Gold Council
We would encourage all governments to provide a regulatory environment that is conducive to investment in gold.

Nicolas Bang, MD and Partner, AC Markets
No, at least not in regards to our business in particular. They're doing a great job.

Richard Wellings, Institute of Economic Affairs
Deregulation. Policymakers need to reduce the heavy burden of bureaucracy faced by businesses by simplifying tax systems, liberalising land-use controls, reducing labour-market regulation and freeing up trade. By cutting costs, these measures would help boost profitability and improve competitiveness.

Here is £10,000. Where would you invest it and why?

James Burton, CEO, World Gold Council
I would invest my £10,000 in gold. A little of this I would put into coins and bars via a recognised bullion dealer.

Nicolas Bang, MD and Partner, AC Markets
I would buy more shares in my company ACM. Why? Because we're in an outstanding growth market, we know this business inside out and are extremely successful at it.

Richard Wellings, Institute of Economic Affairs
At some point there could be opportunities in the banking sector. As a believer in the Theory of Comparative Advantage I would entrust my £10,000 to an investment professional with access to the most up-to-date information on rapidly changing market conditions.