July 24, 2015 |

WHEN THE SMART MONEY MAKES MONEY

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Appetite for risk remains robust right now as a last minute deal was reached to keep Greece from imploding and as Chinese equity markets have calmed down. When investors are comfortable taking more risk, assets like stocks may rise while perceived safe haven assets like bonds and gold may fall. The price of gold has been falling, in fact, as investors anticipate the first upcoming rate hike from the Federal Reserve and as the economy is showing some signs of improvement. In the meantime, Greece... Continue Reading

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July 20, 2015 |

China to Take More Control of Global Gold Trade

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China has made it abundantly clear that it wants to gain more control over the global gold market. The country is taking steps right now to solidify its place among the powers that set the global gold price. While London and Comex have long been the authority of global gold trade, that is about to change… This should come as no surprise, however. China has reportedly been buying massive quantities of gold in recent years, and has taken a number of steps to further its... Continue Reading

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June 29, 2015 |

Greece and the Moment of Truth

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Imagine for a moment the feeling of sheer panic you might experience if you went to your bank and were told you cannot withdraw your own money… Unfortunately, the people of Greece are going through such a scenario right now as we speak… After a weekend in which no deal was able to be reached concerning an extension of funding for the country, Greece has now imposed capital controls and closed its banks for the next several days. Greek depositors are limited to withdrawals of... Continue Reading

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June 15, 2015 |

RISE OF THE RENMINBI

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According to a recent article from The Street.com, “The most important economic issue over the next decade will be the rising position of the Chinese currency, the renminbi, in the foreign exchange markets.” While current global financial reserves are dominated by the dollar, euro, yen and British pound, there is a significant shift taking place right now. A shift that could dramatically change the global reserve market and the dollar’s status as the reserve currency of choice. The central banks that issue these currencies have,... Continue Reading

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June 9, 2015 |

Russia to Continue Buying Gold

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It’s no secret that many central banks have been buying gold in recent years. This trend of central bank buying does not appear to be slowing down at all either, in fact, it appears to be accelerating. These financial mega- institutions have been adding physical gold bullion to their reserves not only for its inherent value but also for diversification as uncertainty surrounding global currency markets increases. In a recent Kitco News article, Elvira Nabiullina, who is chairwoman of the Russian Central Bank, is said... Continue Reading

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June 8, 2015 |

Gold's Long-Term View Alive and Well

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Gold prices have not done much of anything in recent months. In fact, the yellow metal has remained range bound as investors appear to be waiting on the outcome of ongoing negotiations between Greece and its creditors. In addition to Greece, markets also appear to be in a holding pattern as the Fed prepares to raise interest rates for the first time in years. As the Fed gets ready to tighten, the ECB and other central banks continue to pump markets full of stimulus money... Continue Reading

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June 4, 2015 |

The Reality of Central Bank Gold Ownership

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Gold has been called a lot of things over the years. While some investors have lauded gold as a safe haven asset that can preserve wealth and purchasing power, others have referred to it as a “barbarous relic” and silly investment. It is our belief that those who understand the monetary system understand and appreciate the value of gold and precious metals, while those that do not are the ones that choose to bad-mouth such investments. We mock what we don’t understand… For those who... Continue Reading

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June 1, 2015 |

Monetary Policy Matters Not

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  A lot has been discussed in recent months concerning the Fed and its potential plans to begin hiking interest rates. One week the Fed is seemingly on hold, the next week the central bank is getting ready to hike. During this see-saw discussion of the beginning of the tightening cycle, the Fed has consistently stated that any decision with regards to interest rates would be “data dependent.” The equity markets are now in an absurd state of uncertainty. A bad piece of economic data... Continue Reading

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May 29, 2015 |

Chinese Yuan May Get Reserve Currency Status This Year

Japanese Yen

The Chinese yuan has been gaining traction and acceptance among global currency markets. As the Chinese economy continues to grow, China will seek to continue to forge its place among leadership in the global financial marketplace. According to a report today by BBC News, the yuan could get reserve status this year… This is huge. This is another step towards the yuan becoming the global reserve currency of choice. When the International Monetary Fund this week stated that it does not consider the yuan to... Continue Reading

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