With interest rates continuing to creep up, there’s a changing of the guard at the Federal Reserve. In my travels and during conferences, I’ve spoken with many fixed-income investors who wonder how they can best prepare for the uncertainty these changes might bring...
Gold Editorials & Commentary
March 22, 2018
GOLD MINE output worldwide has most likely peaked according to leading analysts, with a move to pay down debt since bullion prices peaked a half-decade ago diverting money from both exploration spending and dividend payments to mining-stock investors.
Metals get a strong rally off falling US Dollar after FOMC Announcement.
March 21, 2018
The big questions being tossed around Wall Street today are: why are markets such a mess? Why are we getting these wild swings? The reality is that the markets are NOT a mess. These are actually normal healthy markets. Healthy markets move, sometimes a lot in a...
As investors continue to believe the stock market correction is over, the next big stop for the Dow Jones Index is 19,000. When the Dow falls below 19,000, all doubt will be removed as the best investment strategy would be to sell the rallies, rather than buy the...
Collectively, the central bank sector claims to hold the world’s largest above ground gold bar stockpile, some 33,800 tonnes of gold bars. Individually within this group, some central banks claim to be the top holders of gold bullion in the world, with individual...
Major credit concerns are back as one of the key U.S. metrics, the LIBOR-OIS spread has been climbing sharply and is now higher than levels seen during the height of the eurozone sovereign debt crisis of late 2011 and early 2012. Indeed, it has risen to levels last...
"Basically... if the Federal Reserve was inflicted upon America by a foreign power it would have been considered an act of war." Join Mike Maloney and Stefan Molyneux as they explore the unintended consequences that await us due to the immoral acts perpetrated by ...
March 20, 2018
The gold price is up just 1% year to date in 2018 and has advanced 5.5% from the December 2017 low. There are some bullish signs from the chart, including a number of higher highs and higher lows following the late 2015 bottom at $1,045. But it certainly hasn’t been...
The FOMC members will gather today for a two-day meeting. It will be the most important event this week, since Powell will chair the meeting for the first time. Gold investors want to get to know him better as the uncertainty makes them a bit nervous. What should we...
The major long-term driver of the gold price is confidence in the official money and in the institutions (governments, central banks and private banks) that create/promote/sponsor the official money. As far as long-term investors are concerned the gold story is ...
Rising U.S. interest rates, usually bad news for gold, are instead feeding signs of financial stress among debt-laden consumers and helping drive demand for the metal as a haven.
It’s very important for gold, bond, and stock market investors to stay focused on the main fundamental price drivers and ignore what may feel exciting but is largely irrelevant to price discovery. Citizen demand from China/India and US central bank policy are the...
Rising inflation has hit the headlines, sparking some attention from journalists. What most mainstream investors don’t realize, though, is that history shows inflation can quickly get out of control, and not just in some mismanaged third-world country.
What is at stake is the reserve status of US dollar following: Loss of dependency on Saudi oil because of the US becoming an oil net importer as early as 2019 making the Petro-Dollar contract less of importance. The introduction of the Petro-Yuan-Gold contract...
March 19, 2018
I often remind investors to look past the negative and find the positive. Last week provided no shortage of big splashy headline stories, from yet another high-profile personnel shakeup at the White House to a nail-biter special election in Pennsylvania’s 18th...
Gary Cohn resigned as President Donald Trump’s Chief Economic Advisor on March 6th. He and Trump didn’t see eye to eye on the recently imposed tariffs and the President selected CNBC commentator Larry Kudlow to replace him Wednesday. Perhaps it was Kudlow’s...
To start, take a look at the chart I have posted below and tell me that is not a great-looking chart. It is the chart of the TSX Venture Exchange, the exchange that has financed a great many of the world’s biggest discoveries.
We will take another break from capital destruction, to treat a topic which has come up this week. On March 11, we said: “…central bankers do not think about gold.
The Bonds segment of NFTRH 491 took a turn to tin foil territory to allow the letter writer to expose newer subscribers to his ideological views and thus, bias. #491 also got pretty talky on the precious metals as it did a thorough review of the sector’s status,...
Regular readers will be familiar with the charts used in these reports. The fact that the gradients of all the trend lines used in the analysis are derived from the master line shown as M, nevertheless might not be fully appreciated.
Current Position of the Market: SPX: Long-term trend – The bull market is continuing with a top expected in the low 3000s. Intermediate trend – The intermediate correction from 2872 could nowcontinue until May-June.
March 18, 2018
According to the latest available data, foreigners owned 48% of all Treasury debt. Although it’s still high, the Wells Fargo economists note that it is down from 60% in 2008. Though following the implementation of trade tariffs it is very likely that this percentage...
You know the expression: "Get in, strap down, shut up, hang on!" For the agonizing narrow road upon which Gold has been slowly trudging these recent weeks is due to suddenly widen into a superhighway. And there's no week like this new week for it to happen. But here...
Since February 8th when the Dow Jones broke below its -10% BEV line in the chart below, it’s been building a pennant formation. I don’t know how significant it will be when the BEV plot breaks above or below the pennant, as technical analysis in today’s “regulated”...
March 17, 2018
IRELAND has a long and rich history of gold mining, dating back to the 1800s and continuing even today. The first Irish gold rush occurred from 1795 through to 1860 with around 300kg of the mineral hand-mined from deep within the Emerald Isle.
This week’s appointment of former Bear Stearns’ Chief Economist Larry Kudlow as head of the National Economic Council (“NEC”) will go down in history as one of the worst appointments in U.S. economic and political history.
Speculation is in bull market values. This is a massive bottoming pattern four years in the making. ABX – a major component in GDX, had a very high volume day early this month, and has marked a bottom so far. GLD is on short-term sell signal. GDX is on short-term...
March 16, 2018
In 1992 a book entitled “Bankruptcy 1995: The Coming Collapse of America and How to Stop It” hit the nation by storm. Written by Harry Figgie, a prominent businessman who had built a Fortune 500 company, and Gerald Swanson, an economics professor with expertise in...
Cycles, cycles everywhere. We’ve already discussed the current state of the U.S. business cycle, arguing that the expansion should last for a while, although it is more advanced than in Europe. However, business cycles aren’t the only creatures living in an economic...
