September 20, 2016 |

Putting U.S. Debt into Perspective

Credit card flag

The issue of debt is often discussed in the same context as physical gold, and with good reason in our opinion. While the U.S. debt situation comes up now and again among investors, it is amazing how the issue is most often simply swept under the rug. It seems that the only time it really becomes a concern with the public is when the government is facing a possible shutdown over budgetary disagreements. Debt is one of those types of problems, however, that will not... Continue Reading

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September 16, 2016 |

Will the Fed Sink the Ship By Hiking?

without a deal

The debate about the pace and timing of any further interest rate hikes by the Fed has been a primary focus of investors since the historic Brexit vote in late June. Although some data has looked promising, other key pieces of data have been an outright letdown. Due to some of the mixed signals being seen in the data stream, Fed Funds futures have seen frequent changes and markets are currently pricing in only a small chance of a September rate hike. These contracts are,... Continue Reading

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September 14, 2016 |

Rate Hike Boo-Hoo

back to zero

Talk of another rate hike by the Federal Reserve has largely dominated the financial media for some time now, and recent hawkish commentary from several Fed officials has markets on edge. The Fed will meet again on September 21st, and investors will be paying close attention. For now, Fed Funds futures are pricing in about a 24 percent chance of a hike this month, while those same contracts are currently predicting a 58 percent chance of a hike in December. The real question is: Does... Continue Reading

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September 12, 2016 |

If Not Now Then Later

House of Cards

As investors look to get back into the swing of things following the Labor Day Holiday and many last minute vacations, their focus remains the same as it has for several weeks, if not months. When will the Fed raise rates again? That is the question that many market participants are still asking. As we wrote previously, last week’s jobs data was essentially a dud, and recent manufacturing data was also not so great. The services sector also showed a surprising and significant slowdown, further... Continue Reading

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September 8, 2016 |

Jobs Data Disappoints

Economic Indicators

Last Friday, the U.S. Department of Labor released its Employment Situation report for the month of August. According to the report, the U.S. added 151,000 jobs in August, well below consensus estimates of 175,000 jobs. The unemployment rate held steady at 4.9 percent. While the addition of 151,000 jobs might sound pretty solid when taken at face value, the number was a clear miss and may drive a shift in interest rate expectations. The week before last, the rhetoric coming out of the Fed symposium... Continue Reading

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September 7, 2016 |

Deutsche Bank Warns Gold Price Should Be Much Higher Based on Central Bank Balance Sheet

central bank graph

Gold could be worth far more than what speculators and traders have determined to be the current spot price. There’s a hidden indicator for the intrinsic price of gold that many investors have ignored. In addition to looking at the cost of mining gold, the level of government debt and total gold production, a major indicator that perceptive investors should pay attention to is central banks’ balance sheets. According to Deutsche Bank’s Michael Hsueh and Grant Sporre, there is a correlation between the rates at... Continue Reading

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September 6, 2016 |

“Rich Dad” Author Robert Kiyosaki’s Thoughts On Investing For The Long Term

Washington Gold Bar

“We’re on the edge of a cliff right now. When you’re investing for the long term in the stock market where there is no connection between stock price and reality, you’re crazy.” –Rich Dad Poor Dad author Robert Kiyosaki In a recent interview with Marketwatch.com, Robert Kiyosaki had some very interesting things to say – things that make a whole lot of sense. When discussing how the rich get rich, Kiyosaki discussed how the rich don’t work for money. He also discussed how one of... Continue Reading

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September 2, 2016 |

Is Chinese Overleveraging Coming to Roost?

Chinese Construction

There has been no shortage of news in recent months-both financially and otherwise-to keep investors busy. The 2016 Rio Olympics garnered considerable attention as did the historical vote by the people of Great Britain to leave the European Union. Investors have also been preoccupied with the Fed, and whether or not the central bank will raise interest rates again this year. Somewhere in the middle of all this news and noise is the fact that the Chinese Yuan has been weakening. What makes this noteworthy... Continue Reading

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August 31, 2016 |

Another Vote Against Negative Interest Rates

Negative rates

As the spread of negative interest rates is set to continue, German bank boss John Cryan is voicing his thoughts on the monetary policy tool. Cryan is the CEO of Deutsche Bank, Germany’s largest bank and a bank that is recognized all over the globe. As more financial experts weigh in on the potential effects of negative interest rates, Cryan made his opinion fairly clear, stating that such a policy could have “fatal consequences.” Deutsche Bank has felt the effects of negative interest rates which... Continue Reading

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August 29, 2016 |

The Jackson Hole Buy

Federal Reserve Board Building

Gold and silver have been under some decent selling pressure in recent sessions. The selling seen in these markets could, in our view, be primarily attributed to low summer trading volumes and some position squaring ahead of the Fed symposium this week in Jackson Hole, Wyoming. The question on everyone’s mind appears to be: Will The Fed allude to an imminent interest rate hike? We don’t know the answer to this question any better than you do. What we do know, however, is that it... Continue Reading

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