Posts by Adam Baratta

April 18, 2017 |

Does Germany Know Something the Rest of Us Don’t?

German Flag Gold

In recent months, Germany has reportedly repatriated half of its gold reserves ahead of schedule. Bundesbank confirmed back in February that it had already moved 583 tons of gold out of New York and Paris. Germany’s plan to hold half of its gold in Frankfort is several years ahead of schedule. Many may be wondering why… There are numerous theories behind the rapid repatriation of the country’s gold. Some have suggested that Germany is looking to keep its gold close in case it is needed... Continue Reading

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April 10, 2017 |

From Headwinds to Tailwinds

Cruise Missile

The tide is turning, and boy is it turning fast…Less than 24 hours ago, President Trump ordered cruise missile attacks on Syrian targets. This military action represents a major shift in policy for the administration, and it remains unclear just how much the situation could potentially escalate. The strikes are in response to the latest chemical weapons attack on innocent civilians, a cowardly, deplorable act that must be responded to and stopped. On news of the strikes, the gold market popped while stocks sank and... Continue Reading

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April 6, 2017 |

Is It Time To Fasten Your Seatbelt?

Seatbelt

The stock market had a great first quarter-no doubt about it. The question now is: Will the second quarter see the same degree of buying interest? Or will the rally begin to really fizzle? Gold also had a solid first quarter. The yellow metal hung tough despite stronger stocks and a higher dollar index. It also performed well in spite of rising interest rates. Could stocks and gold continue to rise together? Sure, there is certainly nothing to say that these markets cannot both climb... Continue Reading

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March 30, 2017 |

Now Is The Time To Be Proactive

House of Cards

Right now may be the ideal time to consider moving some assets around. Although stocks are not far from recent highs, recent price action in the equity markets could potentially be considered a shot across the bow. Investors have gotten a glimpse of market volatility-that hasn’t been seen in some time- and there could potentially be more where that came from, a lot more. The CBOE’s VIX, a widely used measure of market volatility, remains stubbornly low. The VIX is often referred to as the... Continue Reading

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March 24, 2017 |

Is The Trump Rally Finally Fizzling Out?

Stock Market Panic

The stock market has made significant gains since the Donald Trump Presidential election victory in November. Stocks have moved higher on the notion of significant tax reforms and a large fiscal spending plan. Interest rates moved higher while the dollar index also saw a major boost. The gold market sold off on the Trump win. Investors appeared content buying stock and appetite for investment risk was robust. Things could be turning, however. Yesterday, the stock market saw its largest one day drop since October. Since... Continue Reading

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March 20, 2017 |

Not So Fast…

Coins Interest Rate Hike

The Federal Reserve this week is lifting its key interest rate by .25%. This move by the central bank did not come as a surprise. It seems the Fed took various steps in recent weeks to “warn” markets that a March rate hike was coming-even though just several weeks ago the odds or a March hike by the Fed were very small. Given much of the recent hawkish talk from various Fed officials, the question no longer was if they would raise rates three times... Continue Reading

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March 14, 2017 |

More Signs of an EU Breakup?

Global Money

Think right now with rising stocks, rising interest rates, better economic data and a more hawkish Fed that there isn’t good reason to own gold? Think again… Spreads on Credit Default Swaps, or CDS, are rising for some EU countries. This would seemingly indicate that traders and investors may be getting more nervous about a potential breakup of the union, or of a key country deciding to leave as Great Britain did. A rise in these swaps simply means that more insurance is being purchased... Continue Reading

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March 8, 2017 |

So What if the Fed Hikes?

Interest Rate Block

The idea of rising interest rates has been pondered by markets for some time. Given some recent commentary, it seems that the pace of rate hikes could potentially be even faster than originally anticipated. Speaking on Friday in Chicago, Fed Chairwoman Janet Yellen reiterated that an interest rate hike “would likely be appropriate” if the economy remained on track. Her comments come after several other central bank officials have also made more hawkish comments about the economy and pace of interest rate hikes. The central... Continue Reading

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March 2, 2017 |

Buy the Dips

George Washington

The gold market has posted solid gains since the beginning of the year, and thus far is not showing any significant signs of slowing down. From a technical standpoint, the yellow metal looks poised to make another run to the upside. What makes all of this especially interesting is the fact that gold is rising along with stocks. Even bonds have been moving back up as rates have been declining. So what gives? It would seem to be very clear that despite new all-time highs... Continue Reading

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February 24, 2017 |

Is Gold Undervalued?

Catalyst

The gold market is currently sitting at multi-month highs, and the yellow metal could potentially have more gains in store. According to a recent article from Kitco.com, the latest Bank of America fund manager survey showed one third of respondents saying that gold was the best hedge against protectionism. The article went on to state that with a net margin of 15%, the respondents said that gold was undervalued. The article then added that this was the second time investor sentiment has reached this level,... Continue Reading

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