Tag Archive: central banks

More Trouble Ahead

The gold/copper ratio reached its highest level in three years in the third quarter, in what could potentially be a signal for price movement in the year or even years ahead. The World Bank recently, according to Kitco, said that the price of gold is likely to push back towards the $1600 region. There are numerous potential reasons for gold to push higher as copper and base metals push lower or remain stagnant. In fact, a price of $1600 per ounce represents a less-than six... Continue Reading

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Just Another Reason

The current economic and geopolitical landscape is filled with potential landmines, and the climate just got even more tedious. Over the weekend, an attack on Saudi oil facilities reportedly cut production by some 5.7 million barrels per day, or over half of the Kingdom’s production. This amount accounts for about five percent of total global oil supply and could send crude oil prices soaring. Brent crude jumped by about 20 percent after the news, while WTI also made a significant double-digit leap. Thus far, it... Continue Reading

Central Banks Are Still Buying

The recent central bank buying spree looks set to continue. It was reported that Russia’s central bank purchased another 300,000 ounces of gold in July after topping the $100 billion reserve level the month before. The latest figures reportedly show Russia’s gold reserves now stand at nearly 20 percent of its total reserves. The nation has purchased nearly 3.5 million ounces so far this year and has been a consistent buyer on a monthly basis. Russia’s gold reserves have now increased nearly 10-fold over the... Continue Reading

Has the Next Race to the Bottom Begun?

There is certainly no shortage of complex issues plaguing global financial markets currently. The ongoing U.S./China trade war and recent unrest in Hong Kong have fueled a sharp rise in market volatility in recent sessions, and that volatility expansion could potentially be indicative of a long-term topping process in stocks. Has the next race to the bottom begun? Global central banks appear willing to ride to the rescue once again, however, and could take significant measures to combat the accelerating global economic slowdown. The U.S.... Continue Reading

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Central Banks Keep Buying

Global central banks have continued to keep buying gold, adding even more of the metal to their portfolios in June. The month reportedly saw reserves climb by 8 percent, the largest monthly increase in three years, as trade and geopolitical tensions heated up. Countries such as Kazakhstan, Russia and Turkey all added more of the metal to their reserves, while China also previously reported another large increase in its holdings. The recent trend in additions could be set to continue, especially against the current backdrop... Continue Reading

Stocks or the Dollar

The last several weeks have seen a resurgence of market volatility, and many investors are wondering if there is more to come. Through a very bumpy October for equities, gold made some solid strides higher as risk aversion increased. Markets have been a bit calmer in recent sessions, and the yellow metal has seen some declines taking it back to the $1200 level. The recent pullback is not due to the possibility of stocks stabilizing, however, but rather is due to a stronger dollar. The... Continue Reading

Things May Look Very Different

Investing is an art rather than a science. Keeping the big picture in mind is critically important when it comes to achieving financial objectives. That being said, the time to consider the big picture is now. Forget record-high stock markets and a rebound in real estate values for a moment and consider what the financial landscape could look like in 20, 30 or even 50 years. With a stock market that has been moving higher for a decade now, some might suggest those getting long... Continue Reading

Opportunity Knocks

The gold market has been on the defensive in recent weeks, and the selling pressure has remained fairly constant. In another recent post, the idea of a “bearish extreme” was discussed, as it is oftentimes a good time to buy when the rest of the world is selling. Eventually, that selling becomes exhausted, as there may simply be no one left to sell after long periods of declines. A very good potential clue that the market may be reaching- or perhaps has already reached-such a... Continue Reading

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There Is Only One True Form of Money

There are numerous reasons to buy and hold physical gold. Of course, the potential for significant price appreciation is a major factor when investors make the decision to invest in gold. Although everyone likes the idea of buying low and selling high, the idea of a rising gold price is by no means the only-or even most important reason-to buy and accumulate physical gold. Of all the possible reasons to accumulate gold-such as to preserve purchasing power, to hedge against declining currency values and to... Continue Reading

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Is the Economy Running on Borrowed Time?

Without question, the U.S. economy is currently on more solid footing than it was a few short years ago. The labor market is strong, with unemployment levels at the lowest levels in years, and recent growth figures have in some cases exceeded expectations. The Fed has even begun the process of monetary tightening, lifting interest rates off the ultra-low levels seen over most of the last decade. Recent tax cuts and massive government spending are certainly playing a role in the current economic expansion. Stocks... Continue Reading