The markets are severely overvalued, according to both the Buffett Indicator and the Schiller P/E ratio. Taken together, these are a reliable indicator that Wall Street isn’t thinking clearly…
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I don’t believe that the inflation we’re seeing – especially in the U.S. – is in FedSpeak, “transitory.” The indications and real-world price-increase in so many things I want to buy, if they’re in stock, are growing, and unlikely to go back down anytime soon.
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The U.S. government’s nearly two-decade-long, multi-trillion-dollar “nation building” effort in Afghanistan may now have nothing to show for itself. Unsurprisingly, they didn’t see it coming. Central planners almost never do.
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Sometimes, bad luck can strike. But other times, a catastrophe comes from a series of bad decisions, each the reaction to the consequences of the previous one. On August 15, 1971, President Nixon decreed that the US dollar would no longer be redeemable for the gold owed, even to foreign governments
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The Federal Reserve has targeted a 2% inflation rate for years, as though it’s a holy grail. As though 2% inflation was an economic panacea that would perfectly balance employment, business investment and bank lending. Recently, the Fed has loosened the reins on inflation and let it charge ahead. Quite a bit…
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Most gyms have a punching bag in the corner. When someone feels frustrated or wants to show off, he can hit it. The gold standard is the punching bag in the economists’ gym. In an InsideSources op-ed, David Beckworth and Patrick Horan argue, “A new gold standard would do much more harm than good.”
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A mysterious $4 billion sell order – suspiciously placed during the most illiquid time of the day – caused a waterfall $100 decline in gold prices while silver dropped in tandem by over $1.30 per ounce. Among the major issues investors are eyeing this month is the debate over the federal debt…
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This is significant, as it’s what one expects to see if the post-Covid bull market in silver is still intact. Leveraged speculators are just trying to front-run whatever move they expect next. They do not move and hold the price durably.
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It is often excruciating to own metal when the short run price action is completely disconnected from fundamentals. The price smash in the last couple trading days is a case in point. Nobody can make a coherent fundamental case for the move lower. It is best to simply remember there are very good reasons to own physical metal…
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GOLD AND SILVER PRICES stabilised from a flash crash to hit 4 and 8-month lows respectively at the start of Asian trading today due to low liquidity and Fed tapering fears, while oil slid further on concerns over new coronavirus related restrictions in Asia.
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How they decide to answer it – or evade it, as the case may be – will have profound implications for investors and anyone who holds U.S. dollars. For months, the financial media has been running stories about how the pandemic led to a surge in savings…
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Bond yields are telling us gold should sit at $2,000: A recent analysis by Credit Suisse suggests that gold’s price is quite a ways off from where it should be. According to the bank’s analysts, gold’s current fair value is around $1,914 when taking into account market conditions.
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In a yield-starved environment where bonds and cash are returning less than inflation, there are no guarantees. But there are certainly opportunities outside of fixed income instruments. Investors who try to sprint their way to success risk hurting themselves in the process. Going for fast-moving penny stocks or cryptocurrencies can lead…
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The government’s liabilities are the assets of everyone else: individuals, pension and insurance funds, commercial banks, and the Federal reserve. All of these parties lend to the government, though often without knowing.
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One thing is certain, we sure are living in strange times and for retirement savers, that can also mean levels of anxiety that rise a lot faster than IRA balances. From mistakes anyone can make that could derail their retirement, to ongoing market volatility that the media claims is a “good thing,” there are…
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We’re seeing the argument, again, that silver stocks are being consumed in solar panels, medical applications, and of course, electronics. This argument has a certain temptation. After all, the standard assumption is that value is inversely proportional to quantity…
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Despite the effort to “squeeze” the bullion banks, silver has yet to push through the $30 barrier, and gold remains below the high put in nearly a year ago. The effort has been valiant. Demand for physical bullion is unprecedented. However, the paper markets, where price discovery is purportedly done, remain untethered…
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Financial media headlines were absolutely schizophrenic. We saw everything from “Dow Plunges on Covid Resurgence” and “Speculators Flee Suddenly Volatile Market” to “Wall Street Ends Higher, Powered by Strong Earnings, Economic Cheer.”
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It was July 2016 when we offered our first Gold Fixed Income True Gold Lease. The gold lease was to Valaurum for manufacturing their flagship product, theAurum®. Ever since then we’ve been busy Unlocking the Productivity of Gold™ for the good of our clients, and the world…
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This week Biden superficially addressed the problem by admitting the obvious – that prices have been rising rapidly this year – while denying that the inflation surge represents anything out of the ordinary. Trust the experts! After all, when have they been wrong about anything…
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Reddit’s silver “apes” expect 100% to 1,000% gains on their new silver push. Whoever thought that the Reddit-fueled attempt to squeeze silver and expose big bank manipulation of the metal’s prices was done is in for a surprise, via Fox Business
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In decades past, income instruments such as government bonds and bank certificates of deposits provided decent yields. Today, with a 10-year Treasury note yielding just 1.3%, that is not the case.
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Goldman Sachs has said Gold is underpriced at $1,800 and ready to move back to $2,000. Even though gold met many bullish expectations last week by consistently closing above $1,800, Goldman Sachs analyst Mikhail Sprogis thinks the move could be the start of a much larger uptrend.
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There is sometimes a tendency to confuse ends and means. For example, in traveling through an airport there is extensive inspection of passengers. Before you are allowed to board an airplane, you must go through a process that is intrusive and increasingly invasive.
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“We don’t know who’s using a $100 bill today and we don’t know who’s using a 1,000 peso bill today. The key difference with the CBDC is the central bank will have absolute control on the rules and regulations that will determine the use of that expression of central bank liability…
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On June 24, the Champlain Towers South condominium building fell, killing at least 24 people. The collapse of this building provides a surprising number of insights into the collapse of a currency. The following discussion is based on information that is emerging about the incident.
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With negative real interest rates and the ongoing drop in the dollar’s buying power, it’s becoming more and more difficult to hold onto one’s savings (let alone make sound investments). The well-known stockpiling of gold bullion by nations around the world, especially Russia and China, offers hints of a possible solution
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The U.S. economy is at a fork in the road – one route leads to the return of market fundamentals and sane stock valuations, at the cost of a historic market correction. The other route leads to runaway hyperinflation that eats up the debt almost as fast as it devours the dollar’s buying power.
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