The Fed’s preferred measures of inflation are so low they’re in the Fed’s panic zone. What gives? “There’s an ideal playbook, and it would look something like this,” James Rickards, author of the New York Times bestseller Currency Wars,explained. “You’d have higher inflation than we have today, but not…
China Working Quietly to Buy Up GoldDetailsUkraine’s next crisis will be a devastatingly economic one, as violent conflict destroys critical infrastructure in the east and brings key industry to a halt, furthering weakening the energy sector by crippling coal-based electricity production. The Ukrainian military’s showdown with separatists in the industrial east has forced…
Ukraine’s Next Crisis? Economic DisasterDetailsWASHINGTON (AP) — Unemployment rates rose in 30 U.S. states last month, even as employers in two-thirds of the states stepped up hiring. The trends reflect an increase in job-hunters nationwide as an improving economy has encouraged more people to seek work. The Labor Department said Monday that unemployment rates fell in eight states in…
Unemployment Rises in Most U.S. States in JulyDetailsInvestors seem hopeful that Russia and the West can step back from their standoff over Ukraine. There are still plenty of reasons, though, for central bankers to be concerned. Markets around the world rallied this week, helped by indications of reduced tensions in Ukraine. Russia withdrew troops from the border.
Why Central Banks Worry about UkraineDetailsRussia is taking steps to ensure that it protects itself from any future dollar or euro sanctions. Moscow boasts the world’s 5th biggest foreign exchange reserves and the 6th largest gold reserves. In total, the assets amount to over $1.5 trillion. While the West is continuing to try and punish Russia via economic sanctions, the…
Russia Seeks Safe Haven in Gold, Away from Dollar and EuroDetailsA ceasefire in the Gaza Strip collapsed on Tuesday, with Palestinian militants firing rockets into Israel, prompting Israeli airstrikes that health officials said killed a woman and a young girl. Accusing Gaza Islamists of breaking the truce, Israel promptly recalled its negotiators from talks in Cairo, leaving the fate of Egyptian-brokered efforts to secure a lasting peace hanging in the balance.…
Gaza Truce Collapses, Israel Orders Negotiators HomeDetailsFrom Ukraine to Gaza, geopolitical risks are weighing heavily on investors’ minds. But there are plenty more out there that may not be getting headlines. US mid-term elections Risk: Republican victory in the Senate and House results in lame duck presidency, derailing the US recovery. Obamacare and a general ennui with the presidency means…
Three Geopolitical Risks Investors are IgnoringDetailsIn my last post, I wrote about prospects for civil war in Ukraine turning into a direct confrontation between Russia and the West, and what that would mean for gold prices. I said that markets had not yet woken up to this reality and when they did, gold prices would rise. Markets are now taking…
Developments in Ukraine — and goldDetailsWhat is the connection between the price of gold and civil war in Ukraine? Simple—gold has long been a refuge in times of political turmoil. When investors and savers realize the severity of a threat to their wellbeing, they rush to gold to protect their wealth, driving prices up quickly. In recent weeks, the conflict…
What Does War in Ukraine Mean for Gold?DetailsGold jumped $22 an ounce on news that a Malaysian Airlines flight (MH17) was shot down over eastern Ukraine. Later in the day, all signs were pointing to a missile strike on the aircraft, and persuasive evidence was developing that Russian-backed rebels launching a Russian-built missile were responsible. The world awaited the smoking gun of…
The safe haven: Gold moves on news from Ukraine and IsraelDetailsRead Part 1. In my last post, I discussed three myths about gold that Gary Alexander describes in a piece on Seeking Alpha. Understanding these myths is important because they deter many investors from making gold part of their financial portfolios. I’ll address four additional myths here. Myth #4: Gold is primarily a hedge against…
Debunking Gold Myths: Part IIDetailsI recently ran across an article entitled “The 12 Biggest Mistakes the Media Make When Covering Gold Markets,” by Gary Alexander. It’s a good article for potential gold buyers because it debunks many of the myths that lead investors, and their financial advisors, to exclude gold from their portfolios. For the most part, Alexander’s assessment…
Gold Myths that Confuse Gold BuyersDetails
