Consumer prices are rising at the fastest pace in 40 years. The official report for November showed an increase of 0.8% versus October (9.6% annualized) and 6.8% over the past twelve months. What’s more, the month-over-month increases show inflation accelerating.
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One thing is certain, inflation is no longer officially “transitory.” For months, Federal Reserve Chairman Jerome Powell kept telling the public that rising inflation was transitory, and would soon subside. It hasn’t, and isn’t likely to in the near future either.
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A recent survey of institutional asset managers revealed that 40% of those that don’t own gold presently plan to buy it within the next three years. The survey also found that 40% of those that do own gold right now expect to buy more of it within the same time period.
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I have good and bad news. The good is that the price of gold rose 2% in November. The bad – is that the price of gold rose 2% in November. It depends on the perspective we adopt. Given all the hawkish signals sent by the Fed and all the talk about tapering of quantitative easing a small increase is an admirable achievement…
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The Great Resignation Continues… Record numbers of Americans are quitting their jobs, which is putting a major strain on our economy and infrastructure. As one economist puts it, we’ve really met a once-in-a-generation ‘take this job and shove it’ moment.
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Mainstream media has been making a big deal about Social Security’s cost-of-living-adjustment (COLA) for next year. “Biggest jump since 1983,” according to at least one source. While it’s a fact that the 5.9% COLA is substantial when compared to prior years, once inflation is factored in, beneficiaries will experience “sticker shock.”
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As Bitcoin made new all-time highs in recent weeks, an increasing number of investors referred to it as the “new gold.” Cryptos are a far cry from hard money, however, and recent price action may be indicative of why.
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Investing in cryptocurrency definitely means taking on risks. There’s an inherent volatility in this new asset class. Every time Elon Musk tweets, the crypto marks might surge or plummet 20%. Further, there’s a definite flavor of the Wild West in cryptocurrency exchanges, an aura of reckless enthusiasm cloaked in mystique.
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November employment report was mixed. Unfortunately for gold, however, it won’t stop the Fed’s hawkish agenda. The nonfarm payrolls number is much lower than both October’s figure and the market expectations – so, it’s a huge blow to those optimistic about the US economy.
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The U.S. dollar and precious metals futures have one thing in common. The value of the greenback and a contract for future delivery of metal are completely dependent on confidence. When, or if, that disappears, neither will be worth the paper they aren’t printed on.
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Investing in gold and silver offers the feeling of security so many Americans seek, especially in uncertain times. Allocation to precious metals in an IRA is a clear-cut choice for many. But a gold IRA investment may quickly become a decidedly suboptimal investment for those willing to cut corners.
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In recent days, the Fed announced it would not only begin – but possibly step up – its tapering of monthly bond purchases, and global markets have not liked what they heard with stock indices falling last week and again this week, despite some brief recovery rallies.
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Daniel Fisher, CEO of UK bullion retailer Physical Gold, discussed the recent surge in gold demand and why gifting gold isn’t just an Asian phenomenon. He said that this is the second holiday season with off-the-charts demand. Last November’s sales were up 2,000% compared to 2019, and Fisher thinks history is repeating itself…
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Investors fear government health officials will order new lockdowns to try to contain it.Never mind that previous lockdowns don’t appear to have worked. Some of the most draconian were imposed by Michigan governor Gretchen Whitmer. Her state now records the nation’s highest seven-day rate of infections.
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Congress Passes Backdoor Tax Hike by Removing a Popular Savings Loophole: Sometimes Congress doesn’t need to pass tax legislation directly. Sometimes it tries to tax retirement savers indirectly. That’s a polite way of saying, picking our pockets…
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While several analysts have upgraded their gold forecasts, Goldman’s are among the more bullish ones. The bank’s head of energy research Damien Courvalin said that gold is set to move far past its current price, bolstering previous calls for clients to consider the metal’s upside.
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El Salvador has a scheme to borrow dollars to use bitcoin as a means to make more dollars. Those dollars will (they hope) be forked over by savers who will buy from them at a million bucks. Presumably, these new speculators will buy at a million bucks because they hope to sell at two million.
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The official currency of Venezuela is the bolivar. But the preferred medium of exchange of Venezuelan merchants? That’s a different story. It’s now common for people to purchase real estate or expensive assets, such as vehicles or high volumes of merchandise using gold
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Tweedledee? Tweedledum? Either Way, You’re Paying the Bill. Since 2008 there have been numerous examples where the Federal Reserve has protected the wealthy elite while failing both Main Street citizens and the U.S. economy as a whole.
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President Joe Biden signed a $1.2 trillion “infrastructure” bill into law on Monday amid growing concerns that his administration’s policies are fueling higher inflation. Former Treasury Secretary Larry Summers, a Democrat, is warning of an economically and politically ruinous inflation problem brewing.
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Experts estimate that a 20% fall in real estate activity could translate to a 5%-10% reduction of China’s GDP, which, lest we forget, is the world’s second-largest. Should America’s economy begin to feel the effects of China’s contraction, gold will take its historic crown as the safe haven of choice for those seeking shelter from an economic crisis.
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If you ask most people, “what is money?” they will answer that money is the generally accepted medium of exchange. If you ask Google Images, it will show you many pictures of green pieces of paper. Virtually everyone agrees that money means the dollar. What does it mean to have a dollar?
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Market optimists remain convinced that “everything is fine.” After all, the stock markets keep climbing, the Fed remains optimistic inflation will subside in the near term andsupply chain issues will somehow, magically, work themselves out. So everything will be ok. It’s fine.
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Pension Funds Are Struggling to Find Stable Investments (Just Like Everyone Else). The Wall Street Journal recently reported that state and local pension funds have just received a historic windfall of cash, thanks in part to taxpayer dollars… But where to invest?
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Prices move up and down, in the restless churn of our irredeemable monetary system. There are several schools of thought whose theories attempt to describe, if not predict, the next price move…
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Despite little in the way of support that interest rate hikes would go as planned, gold has been suppressed for over a month with the hikes seemingly being priced in. With the Federal Reserve, the Bank of England and the European Central Bank all inclined to watch and see, the markets were quick to react to dovishness.
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Gold finished solidly above the $1,800/oz level on Friday, marking the yellow metal’s best weekly close since late August. More importantly, gold may be breaking out of a larger consolidation pattern in force since prices peaked August last year.
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When will precious metals markets finally make their move? It’s a question that has frustrated many investors in 2021. However, there are signs both technical and fundamental that point to a major directional move coming in the relatively near future.
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