Posts by Kirill Zagalsky

January 2, 2017 |

Will The Fed Deliver in 2017?

Economic Indicators

The Fed finally raised interest rates this past month for the first time in a year. Although this rate hike did not come as any surprise to global markets, what did perhaps catch markets slightly off-guard was changes made to the central bank’s dot-plot for 2017. The central bank is now forecasting three interest rate hikes in 2017 rather than just two. With Donald Trump taking office next month, things appear to be a lot more hawkish now than they did just a few short... Continue Reading

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December 27, 2016 |

Gold Will Shine Again

As the year winds down, and as trading volumes decline, many key markets are likely right at or near levels where they will finish out 2016. Although stocks have had a great several weeks, other asset classes, such as gold and silver, have not performed as well. Although risk assets have been moving higher on the notion of increased spending and tax cuts, much remains to be seen that could determine how markets might perform in the New Year. We believe that gold and silver... Continue Reading

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December 21, 2016 |

Don’t Get Distracted by all of the Noise

Ignore

Last week marked the first time the Federal Reserve has raised interest rates in a year, and only the second time it has done so in a decade. Although the Fed did not surprise markets at all implementing a rate hike of 25bps, the central bank did appear to sound considerably more hawkish than markets had expected. Given the fact that a quarter point rate hike by the Fed was pretty much a foregone conclusion, investors turned their attention to the central bank’s plans for... Continue Reading

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December 15, 2016 |

Keeping Powder Dry for Times like This

Gold Coin Plant

A recent article on CNBC.com was titled:  “Gold suffering second-worst quarter in 18 years, as all goes awry for the metal.” The article goes on to state that “Gold has slumped nearly 12 percent in the fourth quarter, suffering its second-worst quarter in 18 years as a host of catalysts pummel the yellow metal.” Sounds bullish to us… Let’s also not forget that as of right now, gold is still up for the year. Gold has not been able to get much going to the... Continue Reading

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December 9, 2016 |

A Game-Changer for Gold?

Islamic Mosque

On Monday, the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) along with the World Gold Council announced a new gold standard that makes investments in gold compliant with Sharia law. Although gold has been compliant in certain forms in the past, the subject seemed for many to fall into a gray area, and the new gold standard is designed to clarify the guidelines regarding gold investments. A recent statement by the WGC and the AAOIFI said: “Until now, there have been no such... 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 29, 2016 |

Please Go Lower

found a bottom

We really hope that gold and silver prices continue to decline. Let’s say that again: We really hope that gold and silver prices continue to decline. Right now you may be a bit confused. Let us explain: We believe in the long-term potential of gold and silver. In our view, gold at $10,000 per ounce or silver at $250 per ounce would come as no surprise. Not only do we believe in such price potential for these precious metals, but -more importantly- we believe in... 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 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 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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