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Record-breaking central bank and ETF buying boosted 2019’s first half demand to a three-year high, according to the World Gold Council. Also contributing to demand was a more positive environment for Indian consumers, which have always been big jewelry buyers.
Durable goods orders are one of the most watched indicators of economic activity. They comprise such items as automobiles, washers, dryers, furniture, firearms, and toys. Things that are supposed to last for years. The chart below clearly indicates the downward trend in durable goods orders, and I’m sure that members of the FOMC were well
Gross Domestic Product (GDP) grew at 2.1% in the second quarter according to the Bureau of Economic Analysis’ (BEA) “advanced” estimate. The first quarter saw an increase of 3.1% Both estimates are subject to change as more data is analyzed by the BEA.
Both parties are happy with the spending deal reached Tuesday night between the Trump administration and the Pelosi-controlled House. The Trump administration will see defense spending going to $750 billion while the Dems (and, admittedly, some in the GOP) will see an equivalent increase in domestic appropriations.
From 1870 to 1970, the ratio of debt to GDP in the US averaged 1.48. Today, the ratio is 3.47, which means that the economy bears the weight of three times the debt that it did up until 1970. Not coincidentally, it was August 15, 1971 that the President Nixon made the dollar no longer
It’s crazy enough when government debt sells at negative yields. But there are 14 junk bond issues in the eurozone trading at subzero rates.
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
As noted May 22, “the odds are that the Fed will next cut interest rates.” While there have been no rate cuts, Fed Chair Jerome Powell has made statements that indicate rate cuts this year. Also noted: “gold should respond well.”
The housing market is one of the leading indicators of economic activity, and the US market is suffering its longest slump in four years. Sales of previously owned homes fell 3.4% in September from August and were down 4.1% from last year, for the seventh straight month of declines.
