The price of silver is determined by supply and demand on major exchanges, as traders react to inflation expectations, interest rates, industrial demand, and geopolitical events.
Silver skyrocketed this month as the market realized the world will demand much more industrial metal than miners can provide. And yet, silver remains far below its 2011 high.
This article discusses the benefits of investing in gold, including its ability to protect purchasing power and improve risk-adjusted returns in a portfolio.
Costco enthusiasts love the big box store for household goods and $1.50 hot dogs. But now, card-carrying members are flocking to the retailer for… Costco gold bars?
Typically, rising yields are bad for gold. Not this year. Rising yields represent an increasing risk of a public debt crisis, for which gold may be the only remedy.
The gold/silver ratio measures the relative value between gold and silver. Investors can utilize the gold/silver ratio to increase their ounces in a precious metals portfolio without additional investment.
Economic crashes begin with artificially low interest rates and credit expansion which lead to a misallocation of resources, inevitably culminating in a recession.
Prior to 1971, the US dollar was backed by gold. Today, the dollar is backed by 2 things: the government’s ability to generate revenues (via debt or taxes), and its authority to compel economic participants to transact in dollars.
Monetary tightening has created difficulties for the US and foreign governments in managing debt. As these issues persist, gold’s role as a hedge against monetary instability and geopolitical unrest becomes increasingly important.
The drastic increase in debt defaults show that rate hikes are starting to bite. The “free money” measures during COVID-19 seem to have delayed, not solved, the problem.