Daily Brief – Gold

Gold

Given the $600 or 21%+ move up from $2800 at the end of 2024, Gold has had a momentous 8 months for reasons ranging from demand driven by Central bank buying to investors placing safe haven side bets. However, last week trumped the previous 7 months in terms of whipsawing with firstly in response to a trading company seeking clarification from the US as to whether tariffs imposed effective the beginning of August would or would not apply to gold traders and importers. When the response in the affirmative was received, Gold spiked up $100 and then presumably when it was pointed out that Gold was a key part of the monetary system and the repository for gargantuan amounts of sovereign state’s reserves, including the USA, a clarifying statement was to be issued by the White House. Except it was not issued but never mind, Gold retreated to its previous and current level of USD 3491. More expected from the US Administration today.

EUR/USD 1.1640.

World’s Largest Fast Food Chains

Starbucks with 40,000 locations or McDonald’s at 43,000 outlets? Neither, it is China’s Mixue Ice Cream and Tea with 45,000 shops and officially the world’s largest chain despite only being founded in 1997 in Zhengzhou. Since then the ice cream and tea outlets have spread beyond China to the Philippines, Korea, Malaysia, Brazil, Kazakhstan and multiple other Asian locations including Japan, Thailand, Hong Kong, Vietnam, and Cambodia. With just 3 products, ice cream, tea, and bubble tea the business has been managed with a laser like focus to capture the wafer thin margins due to Mixue’s reputation for market busting low prices.

GBP/USD 1.3450.

UK Foreign Students

Sir Keir’s government wants to ban UK universities from taking foreign students where there is a high drop out rate. The top nine countries sending students to the UK account for almost 500,000 in 2023/4 of which more than 80% came from the top four: India, Pakistan, China, and Nigeria. At first glance, a measure to reduce under the radar entries into the UK and the cost associated with that seems a sound plan given the UK’s immigration issues, however less clear is, rather like some of Sir Keir’s other soundbite plans, the means and detail around the implementation.

EUR/JPY172.03.

Functional Beverages

The way we are in 2025 must include a mention for the functional beverage, a concept which probably started in 1927 with Lucozade which was originally named Glucozade by its founder, a Newcastle chemist named William Owen; over the decades the FB has morphed into a variety of sports and nutrition drinks. The latest range includes a can named Trip that according to its website will help you find your calm. Ingredients include Magnesium and Lions Mane. Before you get on the phone to the WWF, that has nothing to do with lions but is a sort of mushroom. More promisingly, Trip contains CBD or Cannabidiol which is extracted from hemp which doubtless helps with the mellowing process and will achieve the level of calm desired by Trip fans.

EUR/GBP 0.8657.

Only in Wales

This day in 2008 – who says we never include 21^st century pop news?! – one Karl Wiosna from Graig near Pontypridd in Wales was served with a Noise Abatement Notice that required his stereo and music collection to be destroyed. Karl’s particular musical choices which in turn offended his neighbours and led to the Notice were U2 and Cher. Definitely a case of With or Without You for Karl and his stereo.

See the stone set in your eyes
See the thorn twist in your side
I’ll wait for you
Sleight of hand and twist of fate
On a bed of nails she makes me wait
And I wait without you

With or without you
With or without you

Through the storm, we reach the shore
You give it all but I want more
And I’m waiting for you

With or without you
With or without you, ah-ah
I can’t live with or without you

And you give yourself away
And you give yourself away
And you give, and you give
And you give yourself away

My hands are tied, my body bruised
She got me with nothing to win
And nothing left to lose

And you give yourself away

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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