Posts On Economic and Geopolitical News

May 9, 2017 |

Is Puerto Rico Just the First Domino to fall?

Puerto_rico_flag

This week, Puerto Rico declared a form of bankruptcy as the island was left with no choice. Years of debt accumulation combined with ineffective government policies and other issues finally became too much for the island to bear, and the day of financial reckoning had arrived. This Puerto Rico bankruptcy could potentially have extremely far-reaching effects, and it should cause concern for U.S. citizens and investors. In short, the bankruptcy could bludgeon investors, undermine state and municipal governments and change the retirement plans of many.... Continue Reading

Category |

May 5, 2017 |

Do Treasuries Hold the Key to Higher Gold?

US Treasury, Debt Ceiling

Although gold remains in an uptrend on the daily charts, the yellow metal has backed off some $50 per ounce from its recent highs. The gold market has been bid up in recent months on increasing geopolitical risks and other factors considered bullish for the metal. Not coincidentally, treasury yields have been rising in recent trade as the price of gold has been under some moderate pressure. Looking at the benchmark 10 year note, yields topped out shortly after the Trump election victory as the... Continue Reading

Category |

May 3, 2017 |

Could The Fed Be Stuck Between a Rock and a Hard Place?

Shipping containers

The notion of additional interest rate hikes from the Federal Reserve has certainly weighed on the gold market in recent months. On the other hand, however, the pace and timing of any additional rate hikes remains likely to be slow and incremental, which could be considered bullish for gold. This week could potentially provide some very good clues as to the central bank’s plans going forward. Weakness in some key economic data, along with the current geopolitical landscape could potentially give the central bank reason... Continue Reading

Category |

May 1, 2017 |

Pullbacks are Great for Buying

Gold stock

The gold market is in the midst of a pullback from recent highs although the uptrend remains intact. Investors had been anxiously awaiting President Trump’s tax plans which did not seem to deliver much following the recent hype. In fact, the plans were fairly vague and will take significant time to work through. This begs the question of what could potentially be the next bullish catalyst for stocks. Earnings perhaps? A calming of geopolitical tensions? Perhaps a fiscal spending package? Although any one of these... Continue Reading

Category |

April 25, 2017 |

The Role of Gold in an Uncertain World

Economic Indicators

Heading into the weekend, investors may be feeling a bit of angst following another terrorist attack in France ahead of the first round of French presidential elections taking place this weekend. Following this weekend’s initial round, another round of elections will take place in early May. These elections have been a major topic in financial markets for some time now, and could potentially make or break the EU as it exists today. Other elections in the region could also impact the union going forward, and... Continue Reading

Category |

April 19, 2017 |

Geopolitics and Gold

North korea missile

The last week has seen some interesting developments in the world of geopolitics. Although much of investors’ attention has been focused on Russia and China in recent months, this week may be very indicative of exactly who may be enemy #1 right now for the U.S. North Korea has continued in its saber-rattling and appears set to continue in its quest for nuclear weapons. This nation (which some refer to as “rogue”), appears to be the single biggest threat to U.S. National security currently. Over... Continue Reading

Category |

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

Category |

April 13, 2017 |

Should You Start To Worry?

Syria Map

Stocks are lower on Tuesday as ongoing risk aversion appears to be on the rise. Any why wouldn’t it? In the last week, the United States has struck Syria with 50 Tomahawk cruise missiles in retaliation for another chemical weapons attack unleashed by the country on its own innocent people. Russia has voiced its concerns over the U.S. military action taken, and relations between the U.S. and Russia could potentially deteriorate significantly if some common ground on the issue is not found-and found soon. To... Continue Reading

Category |

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

Category |

April 7, 2017 |

Do They Have It All Wrong?

Herd Mentality

There seems to be a large consensus that the potential for further rate hikes from the Fed in the second quarter and beyond could derail the rally seen in gold in recent months. A more aggressive central bank, a stronger dollar index and robust appetite for risk are all reasons given for what could be the yellow metal’s “demise.” Thus far, however, none of these issues or potential issues has been able to put a halt to the buying in gold. In fact, the gold... Continue Reading

Category |