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After having said on TV that gold is “his favorite investment” over the next 12–24 months, Paul Tudor Jones bought $82 million in gold shares, as reported by Bloomberg. Earlier in June, Jeffrey Gundlach, known as the “Bond King,” said, “I am certainly long gold.” Gundlach sees a recession on the horizon, and he expects
Herbert Hoover’s name is generally held with derision because he is blamed for the Great Depression. However, here’s one HH statement that all should agree with: “We have gold because we cannot trust governments.” Basically, a gold standard fails as a monetary system because the government is involved.
Since Nixon closed the gold window August 15, 1971, three massive bull market have rewarded precious metals believers handsomely. Each of these bull market runs have been preceded by reckless financial policies.
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 are negative. Consequently, European bond investors, primarily made up of banks and insurers that depend on income, have turned to US Treasuries. Upward pressure on the dollar means downward pressure on
We’re now the-thirds of the way through the second quarter, and GDPNow, which is measured by the Federal Reserve Bank of Atlanta, shows a GDP growth of only 1.3%, versus a 3.2% growth in the first quarter.
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.
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
The World Gold Council likes to emphasize central bank gold buying. However, central banks are not the main drivers of gold demand. Individuals are.
Supposedly, the White House is about to promise a balanced budget by 2034. I’ve been down that road many times in my 45 years of monitoring federal budgets, and it never happens. Making this promise even more ridiculous is that it is based on a projected GDP growth of 3% for the next 15 years.
Congress needed to raise the debt ceiling by March 2 but failed to do so. Now, the Treasury cannot sell bonds to pay government bills, such as payments to bond holders and federal benefit recipients.
