Home › 6a) Gold & Monetary Metals › 6a.) GoldCore › Is ESG Investment the Future of Gold & Silver?
Permanent link to this article: https://snbchf.com/2021/04/flood-esg-investment-future-gold-silver/
Donate to SNBCHF.com
Donate to SNBCHF.com Via Paypal or Bitcoin To Help Keep the Site Running
Please consider making a small donation to Snbchf.com. Thanks
Bitcoin wallet: bc1qa2h6hgd0xkuh7xh02jm5x25k6x8g7548ffaj3j
Receive a Daily Mail from this Blog
Live Currency Cross Rates
On Swiss National Bank
-
2023-03-23 – Monetary policy assessment of 23 March 2023
2023-03-23 -
Übernahme der Credit Suisse kostet jeden Schweizer 12’500 Franken
2023-03-21 -
Swiss National Bank provides substantial liquidity assistance to support UBS takeover of Credit Suisse
2023-03-19 -
«Status quo keine Option mehr»: Bekannter Bank-Experte sieht Übernahme der Credit Suisse durch UBS als Szenario Nummer Eins
2023-03-16 -
While the focus was on Powell Tuesday there were also remarks from the ECB and SNB
2023-03-08
Main SNB Background Info
-
SNB Sight Deposits: SNB Now Selling FX
2023-03-08 -
The Secret History Of The Banking Crisis
2017-08-14 -
SNB Balance Sheet Now Over 100 percent GDP
2016-08-29 -
The relationship between CHF and gold
2016-07-23 -
CHF Price Movements: Correlations between CHF and the German Economy
2016-07-22
Featured and recent
-
QuantMania – Trading System Analyse
-
Swiss Banks Unlikely to Migrate to Blockchain, DLT Systems, Says SNB Advisor
-
The Attack on the Western Tradition
-
Government Redistribution Is the REAL Trickle-Down Economics
-
A Rothbardian History of the United States
-
Stromversorger: Ein Sektor unter Spannung – Podcast mit Hagen Ernst
-
The Real Costs of Government Spending
-
The Republican Debt-Ceiling “Deal” Is Exactly What We Expected
-
Wird es weitere Banken Crashs geben? – Ernst Wolff im Gespräch mit Thorsten Wittmann
-
Can We Understand AI? A Response to Jordan Peterson’s Podcast
More from this category
Swiss Banks Unlikely to Migrate to Blockchain, DLT Systems, Says SNB Advisor
2 Jun 2023
- Government Redistribution Is the REAL Trickle-Down Economics
1 Jun 2023
- The Attack on the Western Tradition
1 Jun 2023
- A Rothbardian History of the United States
1 Jun 2023
- The Real Costs of Government Spending
1 Jun 2023
The Republican Debt-Ceiling “Deal” Is Exactly What We Expected
1 Jun 2023
Can We Understand AI? A Response to Jordan Peterson’s Podcast
1 Jun 2023
- The “Buy Black” Movement: Divisive or a Boon to Black Entrepreneurs?
1 Jun 2023
Smarter Talk Is Smarter Action
1 Jun 2023
- The Fed Is Insolvent, and That’s a Bad Thing
1 Jun 2023
Dollar Steadies After Fed’s Push Back
1 Jun 2023
- Understanding Relationships between Money Supply and Liquidity
31 May 2023
- A Collection of the Political Writings of William Leggett, Two Volumes
31 May 2023
The Economic Nationalists Are Wrong: Free Trade Means Freedom and Prosperity
31 May 2023
- The Putrid Underbelly of Woke Capitalism
31 May 2023
The Street of the Palaces
31 May 2023
Individualism in the US Has Helped Make It an Economic Success
31 May 2023
Debt Ceiling Progress, Weak Chinese and Japanese Data, and Soft EMU CPI, Sends the Dollar Higher
31 May 2023
- The Failure of Public Works and Public Funding
30 May 2023
Higher Corporate Profit Margins Aren’t Causing Inflation
30 May 2023
Is ESG Investment the Future of Gold & Silver?
Published on April 10, 2021
Stephen Flood
My articles My videosMy books
Follow on:
‘ESG’ is a great buzzword in investing right now. For years the momentum has been building for the idea that retirement savings should do more than keep you secure, it also should help the planet. Obviously, no one wants to hurt the planet since its our only home. ESG Investment is shorthand for Environmental, Social and Governance, which are the three lenses through which investments are to be ranked. High ranking companies get more money from investors than low rankers. The competition to rank high is fierce since having more investors is an important thing for companies. ESG is part of the broad socially responsible investing trend that focuses on development of a more sustainable financial system.
This quote from Civitas Post gives reference for the speed of growth seen by ESG investing within Ireland.
With nearly 100 Billion Euro forming up last year we should expect a portion of this money wanted allocation in physical metal, right? Nope. But it should.
In a Complex World…
Many of those ESG investment pools decided to own Tesla despite it making products that need mining of lithium and cobalt for batteries. Many funds also decide to own British Petroleum despite the thinking oil is bad for the planet. Few investors have qualms about owning Facebook despite the privacy breaches. The world is complex and so improving the world through money is not a simple idea. ESG investors are excited about helping others but not exactly agreed on what that means. There are more topics involved than just carbon, but ending oil is the most exciting topic in ESG today. Since mining companies use diesel for energy and chemicals for refining, they often rank poorly at ESG agencies.
ESG ranking is a relativity system. Companies produce annual reports describing how much carbon they saved or reduced. Investors use reports from ESG rating agencies to make decisions. ESG rating agencies compile public information to set their ranking. So information is available only on newly mined gold from producing companies.
Let’s take a moment now to imagine what such a physical bar company might be able to report. Possibly something like the statements below could come from our imagined CEO of Physical Bars in the Basement, Inc.
These three talking points that a CEO representing physical bars could make open the conversation of a compelling case that physical precious metals are contenders for the ESG crown. Should readers have their own ideas to add please share them.
Why Physical Metal is an ESG Investment
It is important to note that there is no single, accepted methodology for calculating ESG ratings. Various ratings agencies often have wildly different assessments of the same company. At a minimum this proves frustrating to investor interests. Further complicating the problem is the fact that most data used in ESG ratings looks backward.
Will your physical metals become the hottest ESG item going anytime soon? Not until investment promoters begin to expand their definition of what ESG really means. Until then the metals will do what they always do, wait patiently while conserving wealth without inflation or representation. Will your local bank ever put physical gold on its ESG approved investment list? Maybe if you send them this article.
Follow on:
No related photos.
Tags: Commentary,Daily Market Update,Featured,Investing,newsletter