Is It All About the Fed Now?

After a crazy week of trading in global equity markets, things seem to have calmed down significantly-at least for now. Of course, if Chinese stocks fall several percent Sunday night, then U.S. markets could potentially be in for another difficult Monday. Aside from recent equity market volatility, markets may once again focus on interest rate expectations. The next FOMC meeting is now less than three weeks away. While the Fed had previously indicated that any changes in rates would likely be a game-time decision, expectations... Continue Reading

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Market Volatility and the Real Culprit

Markets have been on a roller coaster ride in recent days. Following a massive sell-off in Chinese equities on Monday, U.S. markets opened the week to what can only be described as financial bloodshed. The Dow Jones, for example, saw its biggest single day decline ever and was down nearly 1100 points at one point in the session. Much of the financial media has been focused on economic weakness in China and the volatility that has been seen in Chinese equities. And rightly so. As... Continue Reading

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Ouch

The U.S. stock market witnessed massive selling for the second day in a row as investors continue to run for the exit signs in droves. The broad market SP 500 index saw losses today to the tune of over 3 % and closed 64 points lower, while the Dow Jones Industrial Average was hammered for a loss of over 530 points. Concerns over a global economic slowdown and plunging emerging market currencies have been cited by some media outlets as the cause of the selling,... Continue Reading

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Gold Shows Strength as Rates Set to Rise

Friday morning saw the release of the highly anticipated non-farm payrolls data for July. According to the U.S. Department of Labor, the country added 215,000 jobs while the unemployment rate held steady at 5.3 percent. The data was in line with expectations, as consensus estimates were looking for a number of 212,000 jobs created. In addition, there were upward revisions to previous data that added another 14,000 jobs over the previous two months. While this may seem like good news for our economy, Wall Street... Continue Reading

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Why Silver Could Rally Over 25% Into Year’s End

While the recent decline in gold prices has been very well covered by seemingly every financial news media outlet in recent months, the decline seen in silver prices has garnered much less attention. Silver, like gold, has been on the defensive as the Federal Reserve prepares to hike interest rates for the first time in years and as stocks and the dollar march higher. Unlike gold, silver has many industrial uses-thousands of them-that put the white metal into a somewhat unique position. Silver has the potential... Continue Reading

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Where the Truly “Smart” Money Goes to Work

It seems as if everywhere you turn these days, someone is bashing gold. Numerous reasons are given for why gold is a poor investment and why gold prices have been on the decline. “Analysts” will cite such issues as the rising dollar, potentially rising interest rates, higher stocks and more for gold’s lack of upside follow-through. Others will talk about how gold pays no dividend and even comes with a cost of carry. Even hedge funds are now net short gold for the first time... Continue Reading

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WHEN THE SMART MONEY MAKES MONEY

Appetite for risk remains robust right now as a last minute deal was reached to keep Greece from imploding and as Chinese equity markets have calmed down. When investors are comfortable taking more risk, assets like stocks may rise while perceived safe haven assets like bonds and gold may fall. The price of gold has been falling, in fact, as investors anticipate the first upcoming rate hike from the Federal Reserve and as the economy is showing some signs of improvement. In the meantime, Greece... Continue Reading

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China to Take More Control of Global Gold Trade

China has made it abundantly clear that it wants to gain more control over the global gold market. The country is taking steps right now to solidify its place among the powers that set the global gold price. While London and Comex have long been the authority of global gold trade, that is about to change… This should come as no surprise, however. China has reportedly been buying massive quantities of gold in recent years, and has taken a number of steps to further its... Continue Reading

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Greece and the Moment of Truth

Imagine for a moment the feeling of sheer panic you might experience if you went to your bank and were told you cannot withdraw your own money… Unfortunately, the people of Greece are going through such a scenario right now as we speak… After a weekend in which no deal was able to be reached concerning an extension of funding for the country, Greece has now imposed capital controls and closed its banks for the next several days. Greek depositors are limited to withdrawals of... Continue Reading