Posts On Economic and Geopolitical News

December 7, 2016 |

Gold and Silver Headed Back Up According To Commerzbank

Big Horns Silver Gold

Both gold and silver have been hit hard in recent weeks. The surprising Presidential victory of Donald Trump has economic and inflation expectations on the rise, and stocks and the dollar moving higher. Bond yields have risen as many analysts are calling the end of the great bond bull market. Although gold and silver remain susceptible to further selling in the near-term, some analysts believe these markets have better days ahead. In a recent article on Kitco.com, analysts from one German-based bank were quoted discussing... Continue Reading

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December 5, 2016 |

Heavy Redemptions Show It’s Time to Buy

Herd Mentality

The herd mentality can be defined as the influence wielded by your peers when it comes to your behavior. In other words, it means that people can have a tendency to do something simply because “other people are doing it.” The recent selling in “paper” gold could be a great example of the herd mentality at work. According to at least one report, gold ETF GLD saw outflows of over $2 billion in the month of November. SPDR Gold Shares recently reportedly provided reserve data... Continue Reading

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November 25, 2016 |

In Chaos Comes Opportunity

The Donald Trump rally marches on…The Dow Jones, S&P 500 and the Nasdaq have all hit new record highs, and for the time being the party looks like it is set to continue. Risk appetite has been on the rise, and interest rates have also been climbing. Even the dollar has gotten involved, and is trading at its highest levels since the early 2000s. There is no telling just how far stocks could climb from current levels. Could the Dow see 20,000 in the next... Continue Reading

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November 23, 2016 |

Is the War on Cash Just Getting Started?

Rupees Cancelled

Several reasons have been put forth for the recent decline in gold. At the top of that list is recent dollar strength, higher stocks and rising interest rates. While all of these are legitimate reason for gold to come under some pressure, how about what recently took place in India? In case you have not already heard, India recently announced (on November 8th) that its 500 and 1000 rupee notes are no longer considered legal tender. While you might be thinking “so what?” if you... Continue Reading

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November 21, 2016 |

Don’t Be Fooled

Bank Bridge

Following what many considered to be a long-shot victory by Republican Presidential candidate Donald Trump, markets have been moving higher after some initial volatility. The dollar index is approaching 14 year highs, while the Dow Jones has been on a record-setting spree. Interest rates have been on the rise, as bonds and notes were sold heavily. Is this truly the beginning of a new era? In our view, the answer is perhaps yes, but probably no. While things may be looking better here in the... Continue Reading

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November 17, 2016 |

You Should Still Be Buying Gold-Here’s Why

Global Money

Donald Trump will be the next President of the United States. With this surprising election comes a great deal of uncertainty. Markets showed just how nervous they can potentially get on election night as stock index futures tumbled, gold rallied and the dollar declined. Of course, all of these initial reactions to a Donald Trump Presidency later reversed course, with stock markets later moving higher, gold giving up its gains, interest rates rising and the dollar moving higher. What was seen on election night could... Continue Reading

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November 15, 2016 |

Bank of Japan Holding Course

Mount Fuji

At its latest policy meeting earlier this month, the Bank of Japan did what was widely expected and held monetary policy unchanged. Rates will remain at -0.1 percent, while the pace of bond purchases will also stay constant-at least for now. The Japanese central bank did, however, push back its time frame for inflation reaching its two percent target. The bank appears ready to stay on its current course, unless it becomes necessary to hit the gas again. The statement by the BoJ with its... Continue Reading

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November 11, 2016 |

A New Era

President Trump Office

In a historic upset victory last night, Republican Presidential Candidate and billionaire businessman Donald Trump became President-Elect Donald Trump. To say this win for the Presidency came as a surprise would be an understatement. Going into yesterday’s election, polls had Mrs. Clinton ahead by several percentage points. Things changed quickly, however, once the votes started trickling in. Watching the election unfold in real time, investors sought to sell, and sell in a big way. The Dow Jones futures contract was at one point down by... Continue Reading

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November 9, 2016 |

Chinese Appetite for Gold Remains Robust

Chinese Flag

It is no secret that China has been buying and stockpiling gold. Although estimates of China’s total holdings of the yellow metal are the subject of speculation, one thing seems obvious: China wants to continue to accumulate more gold as it takes its place among the global economic elite. We suspect that China’s appetite for gold is not likely to abate anytime soon, and apparently others agree with our assessment. In a recent article featured on Kitco.com, Simona Gambarini, a commodities economist at Capital Economics,... Continue Reading

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November 7, 2016 |

Gold Could Explode

Election Button

The 2016 Presidential election has been one for the ages, and the excitement is far from over. Heading into the final days before Americans will vote for their next President, many polls have the candidates running neck and neck, with Donald Trump now ahead in at least one poll. Things could get a little dicey from here on out… A Trump victory could potentially have a significant impact on global financial markets, and volatility could increase in dramatic fashion. With a Trump Presidency could come... Continue Reading

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