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
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
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
The Dow Industrials approaching 20,000 is all the rage on financial channels. Most commentators seem to be more cheerleaders than news reporters. I wonder if their optimism about higher stock prices is misplaced.
The primary reason for owning gold and silver is the expectation of price inflation. Inflation, of course, comes from money creation at the Fed. However, as what is now often called the World Financial Crisis showed, gold and silver do well in times of financial crises. Here, though, let’s look at a very good indicator
At CMI Gold & Silver Inc. we believe that central bank activity is driving the markets — the metals and the stocks. Expectations of loose money mean higher metals prices (in anticipation of increased rates of inflation) and higher stock prices (in hopes that the stimulus will fillip the economy). As for the latter, there
Fed Chair Janet Yellen said, in her prepared remarks at the Jackson Hole symposium, that “Indeed, in light of the continued solid performance of the labor market and our outlook for economic activity and inflation, I believe the case for an increase in the federal funds rate has strengthened in recent months.” The markets did
Central bank actions and expectations of central bank actions are driving investment markets: the bond markets, the equity markets and the metals markets. Economic news does not move the markets, except that markets move on how investors think that central banks will react to economic news.