The FED speaks: THE 25-BASIS-POINT HIKE IS NOT THE STORY The Federal Reserve has raised interest rates by 0.25 percentage point, taking the federal-funds target range to 3.75%–4.00%. The immediate effect is largely psychological. Markets react to the headline, algorithms react to the headline, commentators react to the headline, then
I am not worried at all by the reduction of the gold and silver prices. I look at the fundamental picture and hold my physical gold and silver tighter. Last Friday’s price falls appear to have been triggered by the algorithms misreading Kevin Warsh’s chat about hiking in the mountains,
It appears that both gold and silver may have found a bottom. Nothing in financial markets is certain, but the charts are giving me increasing confidence that a turning point may be close. My initial reaction to this week’s Middle East crisis was that the market was finally behaving in
Van Greyerz writes in his newsletter that gold reserves valued at today’s prices comprise about 0.5% of the value of global wealth, $32 trillion. This represents the value of all the gold mined in human history. As a comparison, the market capitalization of the 12 largest US corporations equals $30
Both silver and gold have once again taken a beating this week. I still stand by my conviction that long-term physical holdings should be held, and short-term tradeable metals, stocks, etc. should be traded. The temptation to sell the physical metals at this time is real. The psychological reason is
The Strait of Hormuz is again effectively closed. Iran mined it shut, the U.S. blockaded Iran, then the U.S. launched “Project Freedom” to escort neutral ships through, and then Trump, true to form, paused the whole thing mid-stream to negotiate a ceasefire deal. Meanwhile, every barrel of oil that can’t
Are we near the top of the stock market? I think we are close. They can continue to cover up the awful state of the economy, of manufacturing, of inflation, for a short period more. The market will respond well to more money printing, and lower interest rates so it
I think President Trump is blindsiding us. We are told how incredibly well the US economy is performing, but the economic data and major actions by the FED certainly argue against that case. When the economy is doing well, one would raise rates in order to cool it off by
Gold has had a really nice run over the past eighteen months. I believe that this has been allowed in the same way that silver has been controlled and held back. Many reasons have been given for the gold run. Many of the above are valid and it excites me
Happy New Year to all of our incredible clients and amazing staff. We appreciate your support and continue to grow as a result of your referrals and our staff’s hard work. The past year has been one of many twists and turns in terms of the markets, particularly gold and
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