Posts by Adam Baratta

December 23, 2016 |

There’s Still the Debt…

rapid inflation

The rally in stocks and the dollar seen over the last six weeks since the U.S. Presidential election has been the center of financial media focus. Given the amount of ground these markets have covered in a relatively short period of time, you might be asking yourself just how much more room stocks and the greenback have to run to the upside. Although no one can say for sure, the answer is probably a lot. The rally may very well continue into the first several... Continue Reading

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December 19, 2016 |

Has the Towel Been Thrown In?

Federal Reserve

The Federal Reserve finally took action on Wednesday, raising the Fed Funds rate by 25 basis points. This move by the central bank did not take markets by surprise, quite the contrary, it had been expected for some time now. What did come as a minor surprise, however, was the Fed adding a third interest rate hike to their dot-plot for 2017. This possibility of an additional interest rate hike next year drove some selling in multiple markets, including not only gold and silver but... Continue Reading

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December 13, 2016 |

Massive Demand for Gold Coins

Gold Coins Sold

The U.S. Mint on Tuesday reportedly sold out of 2016 American Eagle one ounce, quarter ounce and one-tenth ounce gold coins. According to a report featured on Kitco.com, the mint’s data points to sales of 984,500 ounces of gold in various denominations of American Eagle coins had been sold year-to-date. This represents the highest level since 2011, when one million ounces in coin form were sold. According to the same article, the mint reported November as being the busiest month for sales, with total sales... Continue Reading

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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 1, 2016 |

Think Twice Before Selling, Or Three, Four or Five Times…

sign of strength

The gold and silver markets have been beaten up recently since the surprise Presidential election victory of Donald Trump. With higher stocks, strong risk appetite and a higher dollar index, precious metals investors have had little to cheer about in recent weeks. Some investors may even be considering selling their gold or silver holdings in light of recent market weakness. In our view, this is not only a big mistake, but is the exact opposite of what you should be doing. There are a number... 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 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 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 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 3, 2016 |

World renowned investment manager discusses gold’s place within a portfolio

Gold Egg

In a recent interview with the World Gold Council, Allianz chief economic advisor Mohamed El-Erian discussed the potential role gold may lay within a portfolio. He stated “As part of a diversified portfolio allocation that includes a higher-than-usual cash allocation, gold can play an important role in overall risk mitigation. It can also provide a notable upside should the enormous amount of central bank liquidity injection gain traction and result in higher inflation, be it actual or expected.” El-Erian went on to state “A growing... Continue Reading

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