Posts by Kirill Zagalsky

April 13, 2016 |

Gold as a World Currency

Global Money

It’s no secret that gold, silver, and other precious metals are viewed as the embodiment of wealth. After all, these precious metals have been used by man for thousands of years to facilitate exchange, back paper currency, and protect assets. Not too long ago, the United States and other parts of the world were on the gold standard in which every unit of currency had to be “backed up” by gold. Could a return to a gold standard be seen? Could gold simply become a... Continue Reading

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April 8, 2016 |

3 Simple Reasons For Dollar Downside

cake and eat

It’s no secret that the dollar and gold often exhibit a negative correlation. Because gold is a dollar denominated commodity, a weaker dollar makes gold relatively less expensive for foreign investors while a stronger dollar makes gold relatively more expensive. It’s also no secret that the dollar has been losing value for years. In our view, loss of value is inevitable when it comes to fiat currency. Unfortunately for users of fiat currency, as their value declines they buy less goods and services. While all... Continue Reading

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March 7, 2016 |

Could the Fed Return to Quantitative Easing?

QE, QE4

The question of whether or not the Fed would actually raise interest rates for the first time in almost a decade was answered in December. After several months of speculation, the central bank stuck to its plan of an initial rate hike by the end of 2015. Was this rate hike justified? Maybe yes, maybe no. Certainly debatable… Now that a new year has begun, investors have been trying to gauge the central bank’s intentions on further interest rate hikes. The generally accepted thought was... Continue Reading

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February 19, 2016 |

There’s a Whiff of Deflation in the Air…

3 reasons

Much has been made of the ongoing sell-off in the crude oil market. Declining oil prices have been widely discussed in recent months on various financial media platforms and even just this past week, falling oil drove stocks significantly lower. Crude oil fell below the $30 per barrel mark this week for the first time in 12 years as ongoing concerns over the Chinese economy took their toll and as the notion of even more supply hitting the market weighed on prices. Stocks have been... Continue Reading

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February 17, 2016 |

The $20 Saint-Gaudens Gold Double Eagle

dip

When investing in physical gold bullion, there are many product choices available to investors. These products include gold coins, bars and rounds of various weights. Gold bullion products are produced by many mints, including government mints such as the U.S. Mint and private mints as well. One example of a fine gold coin produced by the U.S. Mint is the $20 Saint-Gaudens double eagle. These double eagles are highly regarded and are a favorite among both collectors and investors alike. If you are looking to... Continue Reading

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February 11, 2016 |

All Aboard!

Gold Bullion

Gold prices exploded today hitting a 12 month high in the process. Gold soared over $54 per ounce and at the day’s highs was over the $1260 per ounce mark. This highly bullish price action would seem to confirm what we have suspected for some time. The gold train is leaving the station-and fast! Gold prices have staged a very solid looking upside breakout in recent weeks and could potentially be headed sharply higher from current levels. Even though gold has risen by over $100... Continue Reading

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February 10, 2016 |

Demand for Gold Soars as Stocks Tumble

Gold is often bought to hedge against economic, geopolitical or currency crises. Gold has a tendency to move in the opposite direction of investor sentiment and often rises in the face of declining risk assets. Investors’ tendency to flock to gold during turbulent and uncertain times was quite evident the last several weeks. In fact, the U.S. Mint reported significant American gold eagle coin sales in January, up a whopping 53 percent from last January. The mint reported sales of 124,000 ounces of American gold... Continue Reading

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January 8, 2016 |

Selling Stampede

stock-market-crash-crisis copy

Stock market volatility has returned and in grand fashion. As of this post, the broad market SP500 is down over 42 points, or 2.12 percent. The markets opened sharply lower this morning following the shortest trading day in Chinese equities in history. Chinese stocks opened last night and dropped significantly right off the bat. For not the first but the second time this week, circuit breakers were triggered to halt trading… In fact, trading lasted for only about 30 minutes before being halted. The slide... Continue Reading

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October 1, 2015 |

The Possible Effects of a Weaker Dollar

3 reasons

The mighty dollar is not as mighty as it once was. Going back to the mid-1980s, the dollar index has lost about half of its value. HALF… Not only does the chart of the dollar index over the past three decades paint a bearish picture for the currency, but recent moves by other nations to move away from the greenback are also adding to bearish sentiment. While the dollar has enjoyed a long run as king of currencies and the reserve currency of choice; that... Continue Reading

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September 15, 2015 |

3…2…1…No Lift-Off

Eagle Bird

With a great deal of economic data set for release this week, all eyes will be focused on Thursday’s FOMC announcement and subsequent press conference. This is the moment investors have been waiting for over several weeks now and the Fed could potentially drive significant market movement based on its decision regarding interest rates. Odds for a September lift-off appear to have decreased significantly in recent weeks and the Fed may elect to hold off until December or perhaps even longer. While anything is possible,... Continue Reading

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