The dollar sank 11.7% over the last twelve months, and gold climbed 10%. The dollar is measured against a basket of non-redeemable paper currencies, the euro (57.6%), the yen (13.6%), pound sterling (11.9%), Canadian dollar (9.1%), Swedish krona (4.2%) and the Swiss franc (3.6%). Only a few decades ago currencies were measured against gold. For
All the talk in political and monetary circles is about the GOP efforts at tax reform. At this time, it is not possible to know the final form the bill will take. The Senate has its version, the House has its version. Compromises will have to be made, and there will be some serious horse
Recently a client wrote: “In 2004, I started buying gold and silver because of increasing US debt, thinking that inflation would come about and the dollar would suffer. Now David Stockman (former Budget Director under Ronald Reagan) forecasts imminent doom for the stock and the bond markets. And, I agree that it will most likely
Famed investor Jim Rogers recently granted a video interview to a Singapore gold dealer. The video, less than 15 minutes, is worth the time as Rogers is one of the few well-known billionaires who publicly advocates owning gold (although the number is increasing).
New York Fed President William Dudley said that he supports another rate hike this year if the economy “evolves as he expects.” He also thinks it’s reasonable for the Fed to start selling part of its $4.5 trillion portfolio, which it accumulated through several quantitative easing programs.
I’ve written for some time about a bottom being put in for gold and silver in December 2015. However, the renewed bull market has not been recognized. So, just what will it take for the metals to move up strongly enough so that they will again gain investors’ attention?
There are many dangers–not to mention moral issues–of money created out of “thin air.” One of the dangers is that it distorts the markets and results in bad investments during “booms,” which inevitably turn to “busts.” During the busts, the bad investments wash out. Another is that it is easy to use. The economy slows,
Gold and silver prices were hammered this morning, gold down $20 at its low, silver down $.60. Both recovered only slightly. It is no coincidence that the metals dropped in what is one of the slowest commodities trading days of the year, tomorrow being the 4th of July with most bullion house traders in the
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
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