Tag Archive: central bank

No Easy Way Out

Now that new Fed Chairman Jerome Powell has taken the reigns, investors seem to be getting a sense that the central bank is not likely to deviate from its previous course under Janet Yellen. The central bank is still sticking with three possible rate hikes for this year, and the possibility of a fourth or perhaps larger hike are also on the table. The central bank now finds itself in a very difficult, if not impossible, situation. It has to attempt to control accelerating inflation... Continue Reading

Could Inflation Be Lurking Around the Corner?

It’s no secret that inflation levels have been running well below the Fed’s desired target of two percent. Despite stubbornly low inflation levels, the central bank stands ready to hike rates further in 2018, perhaps as many as three times. Does the central bank know something the rest of us don’t? While the conspiracy theorists may be disappointed, the answer is probably not. Inflation has remained below desired levels, and it seems to be a thorn in the Fed’s side. Although inflation reports and other... Continue Reading

Buying Opportunity

The price of gold has seen some moderate declines in recent days. Although some may attribute these declines to the FOMC meeting commentary on Wednesday, there may be other, simpler forces at work. On Wednesday, the Fed reiterated its plans for another interest rate hike this year, and the central bank says it remains on track for another three rate hikes next year. The Fed seems intent on following through with its plans despite a significant lack of inflation and other issues that could potentially... Continue Reading

Do They Have It All Wrong?

There seems to be a large consensus that the potential for further rate hikes from the Fed in the second quarter and beyond could derail the rally seen in gold in recent months. A more aggressive central bank, a stronger dollar index and robust appetite for risk are all reasons given for what could be the yellow metal’s “demise.” Thus far, however, none of these issues or potential issues has been able to put a halt to the buying in gold. In fact, the gold... Continue Reading

Latest Fed Minutes Most Hawkish In Years-Or Are They?

Last week, investors got the latest release of the FOMC meeting minutes. Although at first glance the minutes appeared to be considerably more hawkish, the central bank did also cite some risk it sees in the New Year. While it can also be a matter of interpretation to a degree, upon a closer examination of the minutes the Fed still seems rather cautious. The central bank voted to raise rates last month for just the second time in a decade, and while the Fed now... Continue Reading

5 Reasons to Consider Buying Gold Now

Gold remains out of favor: It is hard to think of a more hated asset class than gold and precious metals. It seems everywhere you look, financial experts are telling you not buy it because it produces no income, has costs associated with it, etc. The funny thing about markets is that when assets are heavily disliked by many so-called “experts,” they have an uncanny tendency to rise. Also, try to think of any other asset that you can hold in your hand, or buy... Continue Reading

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The Reality of Central Bank Gold Ownership

Gold has been called a lot of things over the years. While some investors have lauded gold as a safe haven asset that can preserve wealth and purchasing power, others have referred to it as a “barbarous relic” and silly investment. It is our belief that those who understand the monetary system understand and appreciate the value of gold and precious metals, while those that do not are the ones that choose to bad-mouth such investments. We mock what we don’t understand… For those who... Continue Reading

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