In Thursday’s post, I noted that central banks are adding approximately $2 trillion a year to the world’s money supply. Most of that freshly-created money goes into government bonds. However, some of it goes into equities. That’s right, stocks, like those traded on the NYSE and the NASDAQ. The Swiss National Bank and the Bank
According to David Stockman, who served as Budget Director under Ronald Reagan, the world’s central banks are adding some $2 trillion annually to the world’s money supply. This is on top of the trillions that were added with multiple quantitative easing programs by the Fed, the European Central Bank and the Bank of Japan since
One of the reasons that gold and silver are safe investments is that today central bank printing of paper money is widely accepted. Additionally, there are no limits on how much money central banks can create. The graph shows the balance sheets of the European Central Bank, the Fed and the Bank of Japan. Note
This is the slowest precious metals market in decades. The good news is that slow markets often are signs that bottoms are being put in. But, let’s consider the causes of this lackadaisical market. The primary cause is that the many stock indexes are making new highs, with the most watched, the Dow Industrials, only
Old US gold coins should be gold investors first choices because they now sell at premiums comparable to 1-oz American Gold Eagles. Historically, old US gold coins have carried huge premiums, sometimes as high as 40%. Now, they’re selling at 4% to 6% premiums over the value of their gold content. As this precious metals
For only the second time in 44 years, I’m recommending old US gold coins. The other time was in the 1990s. $20 Libertys and St. Gaudens now are priced competitively with 1-oz American Gold Eagles, the world’s most popular gold bullion coins. This in on a per ounce basis! The better grade coins carry slightly
Early last Monday morning, burglars broke into Berlin’s Bode Museum and stole a 100-kilogram [221-pound (avoirdupois)] .99999 fine Gold Maple Leaf with a face value of C$1,000,000. However, the C$1 million face value was nominal. The coin’s gold value was right at $4 million.
Just looking at the increased number of “HELP WANTED” signs hanging in business windows and the rising prices on restaurant menus, I suspected that inflationary pressures were building. Then I validated my suspicions by looking at Bureau of Labor Statistics data.
Central banks to the rescue Just as the world’s central banks moved to rescue the banking system during the 2008 World Financial Crisis, they are now moving to rescue gold and silver investors, albeit the central banks are not rescuing gold/silver investors wittingly. Nonetheless, they are doing it just the same.
I’m not fond of recommending videos, especially long videos. However, this video interview of David Stockman, Budget Director during the Reagan Administration, is well worth the time. Stockman reminds us of problems and developments that are being ignored. For example, Obama and Congress made a deal years ago to suspend the debt limit until March