More Signs of an EU Breakup?

Think right now with rising stocks, rising interest rates, better economic data and a more hawkish Fed that there isn’t good reason to own gold? Think again… Spreads on Credit Default Swaps, or CDS, are rising for some EU countries. This would seemingly indicate that traders and investors may be getting more nervous about a potential breakup of the union, or of a key country deciding to leave as Great Britain did. A rise in these swaps simply means that more insurance is being purchased... Continue Reading

Is It About to Hit the Fan?

Stocks just seem to keep going and going…Markets have moved higher on the notion of significant tax reforms and a big boost in fiscal spending. Financials have cheered on the idea of less regulation and potentially higher interest rates. Much of the economic data has continued to point to ongoing improvement, and inflationary pressures are on the rise. While it seems right now that markets could potentially continue higher from current levels, some believe that the markets may be in for a big surprise. In... Continue Reading

So What if the Fed Hikes?

The idea of rising interest rates has been pondered by markets for some time. Given some recent commentary, it seems that the pace of rate hikes could potentially be even faster than originally anticipated. Speaking on Friday in Chicago, Fed Chairwoman Janet Yellen reiterated that an interest rate hike “would likely be appropriate” if the economy remained on track. Her comments come after several other central bank officials have also made more hawkish comments about the economy and pace of interest rate hikes. The central... Continue Reading

A Sign of Strength

The Dow has hit a major milestone – 21000. Markets continue to cheer on the Trump administration, and are moving higher on hopes of stronger economic activity and tax cuts. Interest rates have begun to rise again, and the dollar index is also on the move to the upside again. Interest rates could potentially challenge their post-election highs while the dollar index could do the same. The Fed has sounded significantly more hawkish, and a March interest rate hike is now not only very much... Continue Reading

Buy the Dips

The gold market has posted solid gains since the beginning of the year, and thus far is not showing any significant signs of slowing down. From a technical standpoint, the yellow metal looks poised to make another run to the upside. What makes all of this especially interesting is the fact that gold is rising along with stocks. Even bonds have been moving back up as rates have been declining. So what gives? It would seem to be very clear that despite new all-time highs... Continue Reading

Remember that Debt Ceiling Thing?

The nation’s spending limit is quickly coming up, due to expire on the 15th of March. The debt ceiling is a hotly debated topic, and unless Congress acts to expand the debt limit, things could potentially get quite crazy. Back in 2011, the debate over the debt ceiling helped fuel a rally in gold that took the yellow metal to all-time-highs. Standard & Poor’s downgraded the U.S. credit rating that year, sending shockwaves through global markets and putting into question the country’s status as the... Continue Reading

Is Gold Undervalued?

The gold market is currently sitting at multi-month highs, and the yellow metal could potentially have more gains in store. According to a recent article from Kitco.com, the latest Bank of America fund manager survey showed one third of respondents saying that gold was the best hedge against protectionism. The article went on to state that with a net margin of 15%, the respondents said that gold was undervalued. The article then added that this was the second time investor sentiment has reached this level,... Continue Reading

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A Return to the Gold Standard?

The gold standard has been an issue that has been debated for some time by proponents of such a system as well as opponents of such a system. Although some analysts might believe that a return to a gold standard is highly unlikely in today’s modern global economy, proponents of such a monetary system still make interesting arguments for its consideration. In a recent article from Kitco.com, former Fed Chairman Alan Greenspan reportedly had some interesting insights. Per the article, Greenspan was quoted in the... Continue Reading

Rising Inflation

The gold market may potentially be benefiting from rising price pressures, among other things. The yellow metal has performed well in recent weeks, and has been on the stronger side of the ledger even in spite of stocks making fresh all-time highs and the dollar index remaining higher. This week saw some key inflation data that showed price pressures are on the rise. On Wednesday, the latest reading on the Consumer Price Index showed a rise of .6 percent last month, well above consensus estimates... Continue Reading

Take Your Pick

The gold market has been trending higher for the last few weeks, and in our view with good reason. Despite some higher equities and fresh all-time highs being made in stocks, a degree of risk aversion still remains in the marketplace. Of note is the fact that gold has been rising along with interest rates-could that potentially spell trouble for stocks? Among a number of potential catalysts for higher gold prices, here are three that may potentially keep a floor under the yellow metal and... Continue Reading