Become a Better Investor Newsletter – 6 September 2025
Noteworthy this week
- Gold surpasses US$3,600/oz t
- Central banks load up on gold
- Diamonds are an investor’s nightmare
- Russian gas to China instead of the West
- The US makes the money
Gold surpasses US$3,600/oz t: Great news for gold investors (and for our allocation strategies). However, it’s also concerning for our global financial system.
Why point out another record high for the price of gold, especially as we’ve already had 26 record closes this year alone?
It’s because this phenomenon provides contextual insights into broader developments in the global financial landscape.
These price records aren’t just about… pic.twitter.com/K9masg1SQy— Mohamed A. El-Erian (@elerianm) September 3, 2025
Central banks load up on gold: Central bank direct holdings of gold now exceed those of US Treasuries for the first time in some 30 years.
This chart, illustrating how central bank direct holdings of gold now exceed those of U.S. Treasuries for the first time in some thirty years, is attracting significant attention.#gold #centralbanks #markets #bonds pic.twitter.com/SVcFZzmdLu
— Mohamed A. El-Erian (@elerianm) August 31, 2025
Diamonds are an investor’s nightmare: Diamonds (at least natural) may be a girl’s best friend, but they’re your portfolio’s worst nightmare. Prices have fallen to their lowest level this century!
BREAKING 🚨: Diamonds
Diamonds may be a girl’s best friend but they’re your portfolio’s worst nightmare. Prices have fallen to their lowest level this century! pic.twitter.com/42dmfeGAn4
— Barchart (@Barchart) September 2, 2025
Russian gas to China instead of the West: Russia has signed an agreement with China on a gas pipeline through Mongolia. This pipeline diverts gas once meant for Western Europe straight into China.
Huge news this morning: Russia has finally signed a binding agreement with China on Power of Siberia-2; a 50 bcm pipeline through Mongolia from the Yamal fields.
Unlike the current line, which taps Asia-facing reserves, this one diverts gas once meant for Western Europe… pic.twitter.com/NgIxknlEAZ
— Brian McDonald (@27khv) September 2, 2025
The US makes the money: This chart highlights the overwhelming dominance of the US. Since the peak before the global financial crisis, US corporate profits have surged by 166% – far outpacing other regions; the eurozone up only 8%.
This chart from Goldman Sachs highlights the overwhelming dominance of the US. Since the peak before the global financial crisis, US corporate profits have surged by 166% – far outpacing other regions. By contrast, the eurozone has barely moved, with corporate profits up only 8%,… pic.twitter.com/b5A12fcD8y
— Holger Zschaepitz (@Schuldensuehner) August 31, 2025
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Weekly market performance
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Chart of the week
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Podcasts we listened to this week
Big Ideas From The Art of Spending Money – The Morgan Housel Podcast
Readings this week
There’s a Significant Chance that the Trump Administration Could Impose Capital Controls
“The dollar is the universal language of the global financial system. In his new book, economist Kenneth Rogoff argues that the greenback’s supremacy could be shaken. Due to the high level of US debt, investors should brace themselves for volatile markets and unorthodox government intervention.”
Book recommendation
Peak Human: What We Can Learn from the Rise and Fall of Golden Ages by Johan Norberg
“In Peak Human, acclaimed historian Johan Norberg examines seven of humanity’s greatest civilizations – ancient Athens, the Roman Republic, Abbasid Baghdad, Song China, Renaissance Italy, the Dutch Republic and the Anglosphere – and asks: how do we ensure that our current golden age doesn’t end?”
Get the book on Audible or Kindle.
Audible is great; have you tried it? If not, click here to get 2 books for free.
Memes of the week
— Not Jerome Powell (@alifarhat79) September 3, 2025
🎯🤣🤣🤣 pic.twitter.com/Ut9d7PCOH3
— Not Jerome Powell (@alifarhat79) August 28, 2025
Published on Become a Better Investor this week
In this deeply personal episode, William Scherkenbach shares with host Andrew Stotz what it was like to sit in Deming’s classroom in 1972, join him for late-night chats at the Cosmos Club, and help ignite transformational change at Ford and GM.
Listen to From Student to Colleague: An Insider’s View of Deming’s World (Part 1)
Hong Leong Asia Limited (HLA SP): Profitable Growth rank of 8 was up compared to the prior period’s 9th rank. This is below average performance compared to 1,430 large Industrials companies worldwide.
Read Hong Leong Asia – World Class Benchmarking
LT Group Incorporated (LTG PM): Profitable Growth rank of 8 was same compared to the prior period’s 8th rank. This is below average performance compared to 1,430 large Industrials companies worldwide.
Read LT Group – World Class Benchmarking
MC Group Public Company Limited (MC TB): Profitable Growth rank of 3 was down compared to the prior period’s 1st rank. This is above average performance compared to 750 small Cons. Disc. companies worldwide.
Read MC Group – World Class Benchmarking
In August 2025, we published 4 new episodes of the My Worst Investment Ever podcast. Listen to all of them here.
Listen to My Worst Investment Ever August 2025
DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.