Saturday, May 25th, 2019 MST

Look for the Fed to intervene

Primarily because of the strength of the dollar relative to other currencies, gold has been stuck in the $1275 for the past month.  In the other major currencies, gold has risen as those currencies have fallen against the dollar.

Europe’s woes put pressure on gold

Because of Germany’s weakening export driven economy and because German bonds are preferred by the European Central Bank, yields on the country’s 10-year bonds recently went negative.  Consequently, European bond investors, primarily made up of  banks and insurers that depend on income, have turned to US Treasuries.  This has resulted in upward pressure on the

Federal budget deficit widens

In the first seven months of this fiscal year, the federal budget deficit grew 38% over the same period last year.  The Treasury ran a $541 billion deficit from October through April, compared with $385 billion during the same period a year earlier.  Part of the increase was attributable to a shift in the timing

GDPNow 1.2%

The business channels were all aglow last week when the Bureau of Economic Analysis (BEA) reported that the Gross Domestic Product grew by 3.2% in the 1st quarter.  Trump supporters were ecstatic. However, yesterday GDPNow, an analysis based a methodology similar to the one used by the BEA, posted a projected increase of only 1.2%

What not to buy

Sometimes it is just as important to know what NOT TO BUY as it is to know what to buy.  High premium coins promoted by telemarketers fall into the category of what not to buy.