A Black Hole of Debt

In the German language, the word for debt – ‘schuld’ – means the same thing as guilt. Someone who has a tremendous amount of guilt would seek forgiveness. So the term many economists are now using – forgiveness – in regards the world’s growing debt problem would seem appropriate. But this term does not encapsulate the crises that would result if a large portion of debt was erased by policy makers. Until recently, the term ‘debt forgiveness’ in regards to government and corporate debt was... Continue Reading

The Spread of Negative Interest Rates

The spread of negative interest rates has been highly publicized in recent months in a trend that could, unfortunately for depositors, continue. While much has been made of low rates in the U.S. in recent weeks while the ten year note sits around 1.4%, the fact is that in some countries depositors now not only receive zero yield but must pay for the privilege of having a bank hold their money. Some European banks began cutting rates below zero in 2014, and Japan has followed.... Continue Reading

Gold Poised for More Gains

  The gold market is showing some significant signs of strength recently that cannot be denied. Price action on Friday was indicative of the significant underlying strength currently being seen in gold ­ and with good reason. Following the Employment Situation report for June, which showed non­farm payrolls adding an additional 287,000 jobs, gold saw some decent selling. That selling, however, was quickly met by willing buyers who happily scooped up gold on the dip. By late afternoon, gold was in positive territory for the... Continue Reading

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A Lurking Danger

It seems that the pace and timing of additional interest rate hikes by the Federal Reserve has largely dominated financial headlines in recent months. While the general consensus seems to be that the pace of further hikes will be very slow and incremental, we’d like to present an alternative possibility that seemingly few investors are considering. What if inflation expectations were to pick up rapidly? What if in the coming quarters, inflation were to accelerate at a pace significantly faster than the Fed’s two percent... Continue Reading

Heavy Hitters Betting On Gold

We have consistently preached the value of gold and other precious metals and why we feel that these instruments may appreciate significantly in value over the long-term. We believe strongly that gold can provide investors with numerous potential benefits including price appreciation, protection of wealth and purchasing power, and a hedge against inflation or deflation. We think gold prices are going higher, and we are not the only ones that feel this way… Billionaire investor and hedge fund manager George Soros has been reportedly dumping... Continue Reading

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Lower Rates for Longer?

Heading into the June FOMC meeting, investors were primarily focused on whether or not the Fed would hike rates again. Following the dismal May jobs report, the likelihood of a June hike declined significantly and the central bank did, in fact, remain on hold. The question then became: Would the Fed hike in July or possibly September? Things can change quickly in global financial markets and this past week investors have seen a great example of just how quickly things can head south. The aftermath... Continue Reading

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3 Common Mistakes to Avoid When Investing in Precious Metals

Investing in physical precious metals can have many potential benefits. These possible benefits may include added portfolio diversification, acting as a hedge against inflation, protection of purchasing power and more. While we believe that investing in hard, physical assets such as gold and silver is one of the best investments you can make, there are a few key issues to keep in mind when building a significant holding of precious metals. Here we will outline three common mistakes made by those new to precious metals... Continue Reading

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The Vote Is In – Brexit Becomes Reality

In a historic vote that shook financial markets on Friday, the people of Great Britain have voted to exit the European Union. While optimism over the nation remaining in the union seemed to be on the rise heading into Thursday’s vote, things changed quickly once the votes starting being tallied. Stock index futures, interest rates and currencies starting seeing massive volatility on Thursday night as the results came in. Brexit was becoming a reality… At one point, S&P 500 futures went “limit down” with a... Continue Reading

What Might A “Brexit” Vote Mean For The U.S.?

As the highly anticipated “Brexit” referendum approaches this Thursday, markets could see ongoing volatility. Now that the latest FOMC meeting is out of the way, this key vote is likely to garner the majority of financial headlines this week. While the two sides in Great Britain have traded time as the front-runner, the election could be very close and markets may be on edge until a clear winner is determined. While a vote to remain in the EU may calm markets in the short-term, the... Continue Reading