Tag Archive: gold

Another Explanation for the Rise in Gold

The recent rise in gold has been widely discussed in financial media. There have been numerous issues attributed to gold’s rise including the U.S./China trade war, an increasingly-dovish Fed, a slowing economy and a rising risk of recession. One issue-albeit one you probably have not heard about yet-is the increasing risk of stagflation. The phrase stagflation was first used in Great Britain and today is understood to mean a period in which prices rise without a corresponding increase in demand. During a period of stagflation,... Continue Reading

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How to Make the Most of an Investment in Gold

When it comes to making the most of an investment in gold, there is really one simple rule of thumb to follow: Buy as much as you can. With a long-term view and long-term objectives, the more bullion you can acquire the better. Not only does this strategy on how to make the most of an investment in gold provide the most upside appreciation potential, but it comes with other potential benefits as well. Higher Prices: Simple math tells you that the more gold you... Continue Reading

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Does the Fed Have Any Credibility Left?

The Federal Reserve has demonstrated that it is incapable of weaning the stock market off Fed-stimulus. This begs the question of whether the central bank has any credibility left as an inflation fighter and independent institution. The central bank began “treating” the market years ago. The Federal Reserve began with an initial round of QE, and when that didn’t work, it proceeded to provide additional injections in the form of QE2 and later QE3. Even that wasn’t enough, and the Fed was also forced to... Continue Reading

Another Week Another Fed Meeting

Another Week Another Fed Meeting After finally breaking through key resistance around the $1,300 area last week, the gold market is taking a bit of a breather in early action today. The market appears poised for further upside, and a solid close above resistance or several consecutive closes above could add credibility to the recent breakout. The market will have numerous issues to contend with this week, including the end of the government shutdown, corporate earnings and the Fed meeting on Wednesday. Gold may see... Continue Reading

Leading Indicators Decline

According to a report by marketwatch.com, leading indicators declined by .1% in December in what may be viewed as another sign of a slowing U.S. economy. Of note is the fact that the index fell in two of the final three months of 2018, quite possibly due to the current slowdown gathering steam. The latest disappointing economic report is just another in what has seemingly become the trend of late. Several key components of the economy, especially in the manufacturing sector, have been showing weakness... Continue Reading

A Great Example

When discussing the numerous potential benefits that come with gold ownership, the topic of gold being the only true form of money is always a focal point. The yellow metal has been regarded as such for centuries and does not carry the risks that come with fiat currency. The notion of gold being the only real form of money that exists is evident in the U.K. currently. With a March 29 deadline for a Brexit deal quickly approaching and the potential for a hard Brexit... Continue Reading

Could Another Round of QE be in the Cards?

Markets have been wrestling with numerous issues in recent months. The ongoing war on trade, rising interest rates, Brexit, the continuing government shutdown and other geopolitical concerns to name a few. During that time, stock markets have come under pressure and recently flirted with bear market territory. A sharp rise in volatility didn’t help matters either, and investors have been left wondering if a market top has been reached. Much has been made of the mixed messages from the Fed. Not long ago, Fed chief... Continue Reading

Fed Chief Jerome Powell Acknowledges Debt Problem

The U.S. is running massive deficits as the nation’s indebtedness continues to grow. Speaking at the Economic Club of Washington D.D., Fed Chairman Jerome Powell recently acknowledged the issue. In a piece by cnbc.com, Powell was quoted as saying “I’m very worried about it. From the Fed’s standpoint, we’re really looking at a business cycle length: that’s our frame of reference. The long-run fiscal, nonsustainability of the U.S. federal government isn’t really something that plays into the medium term that is relevant for our policy... Continue Reading

What Can the Fed Do?

The Federal Reserve has been the topic of considerable debate in recent months. The central bank has continued its course towards policy normalization over the last couple years but has recently run into a brick wall. The Fed has hiked several times over the last year, drawing the ire of numerous analysts and even the President of the United States. The central bank recently followed through on its plan for another 25-bps rate hike in December. The recent release of the latest FOMC meeting minutes,... Continue Reading

The Message is Clear

Yesterday was a busy day for the Fed. Several central bank officials gave speeches throughout the day that were then followed by the release of the latest FOMC meeting minutes in the afternoon. Some of the speeches appeared to provide differing opinions on the economy and how the central bank should proceed. Chicago Fed President Charles Evans alluded to the Fed’s previous plans for another three rate hikes in 2019. Atlanta Fed President Raphael Bostic provided his take on the central bank’s plans going forward,... Continue Reading