June 7, 2018 |

The Inflationary Effects of a Trade War

Recent dollar strength, stronger stocks and overall robust appetite for risk have all weighed on gold in recent weeks. Despite these headwinds, however, the yellow metal has not succumbed to any significant selling. All of the issues potentially weighing on gold prices currently are likely temporary. Stocks will probably not continue to go up indefinitely, the dollar is likely to roll over again and there will come a point when risk aversion is a major market theme. There is another major issue, however, that is... Continue Reading

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June 5, 2018 |

It Will Only Get Worse

The recent spike in market volatility seen this past week based on unfolding events in Italy should only serve to underscore the importance of being hedged against increasing volatility and rising yields. Although markets are seeing a sense of calm return the last couple of days, the EU-and global markets-remain vulnerable to geopolitical developments that threaten the status quo. It is also important for investors to understand a critical point: That without global central banks still pumping money into the financial system, things could have... Continue Reading

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May 31, 2018 |

Is the EU Headed For More Trouble?

Just a few years back, the EU, and Greece specifically, dominated the financial media as the nation headed for a major default and bankruptcy. Sovereign debt issues have been an area of focus in the region for some time, and there has been ongoing discussions about the health of the union for years. Those discussions are likely to pick up in pace once again, as recent developments in Italy are a major cause for concern. The country is headed for new elections later in the... Continue Reading

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May 28, 2018 |

A Double Whammy

The gold market is seeing some strong upside on Thursday as geopolitical risks and the Fed both fuel buying. In a move that was far from a surprise, President Donald Trump has officially cancelled the upcoming summit with North Korean leader Kim Jong Un. “I was very much looking forward to being there with you,” Trump said in the letter to the North Korean government. “Sadly, based on the tremendous anger and open hostility displayed in your most recent statement, I feel it is inappropriate,... Continue Reading

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May 24, 2018 |

Now is Time to Get Ahead of the Curve 

Just Another

The commodity bull market has seemingly begun. Oil prices are now trading at multi-year highs, with Nymex crude trading over $72 per barrel and Brent crude trading around the $80 level. Crude has been on the offensive even as the dollar index has also moved up to multi-month highs. The strength being seen in oil is likely due to several factors, however, recent economic strength and the potential for lower supplies are two of the main drivers. Some analysts have already begun to suggest that... Continue Reading

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May 22, 2018 |

The Dollar Rally Won’t Last

The Dollar Index has been on a tear in recent weeks, gaining considerable ground against the euro and other currencies. Although the currency is not the primary catalyst for changes in the price of gold and other hard assets, it does have a major influence on commodities and assets that are denominated in dollars. Some analysts have suggested that recent dollar strength has been behind some moderate weakness in gold. While that may be true, to an extent, the rally in the greenback is likely... Continue Reading

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May 18, 2018 |

Dips are the Best Time to Buy

Coins and Watch

The best time to buy an asset is when it is on sale. Given the recent 2% decline in the price of gold, current levels could fall into that category. Short-term dips in the price of gold should not be feared, but should be welcomed. This is a great opportunity buy gold at a lower price point. There are those that will argue that an asset should not be bought on weakness, but should rather be purchased when it is showing strength. This is a... Continue Reading

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May 16, 2018 |

3 Reasons to Consider Exiting Stocks Now

More Trouble Ahead

The stock market seems to keep going and going. The market has had little, if any, in the way of major pullbacks or retracements since the current bull market began about a decade ago. The market seems unable to go significantly lower, and the current level of bullishness borders on the dangerous. Price action like that has been seen in recent months has a tendency to suck investors into the market-especially those that have been waiting for that big “pullback” to get long. As these... Continue Reading

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May 15, 2018 |

Is a Big Drop on the Way?

Stocks have been moving higher for the better part of a decade now. It is noteworthy that during the recent bull run, the market has seen very little in terms of serious or protracted corrections. Stronger economic data, more jobs and higher wages have all recently fueled the market’s ongoing upside, but at some point, the stock bulls will run out of ammunition. In fact, the economy is becoming overdue for its next recession, and it is also not clear just how long the recent... Continue Reading

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May 14, 2018 |

Why Investors Must Watch the Dollar

After seeing months of lower prices, the dollar index has been on the rebound lately, trading at a 4.5 month high in recent sessions. The upside in the dollar has kept a bit of a lid on gold prices-for now anyway-and the relationship between the metal and the currency is a very important one to understand. Like many other commodities, gold is denominated in dollars. This means that when the dollar is higher in value, gold becomes relatively more expensive for buyers in other currencies.... Continue Reading

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