Tag: money
Gold bull markets are correlated with secular drops in consumer sentiment. Today’s sentiment numbers will help support gold’s next move.
How to Confront Stagflation
In a period that crushes financial assets and currencies, investors need to own the king of all commodities: gold.
Gold Needs a Fed Pivot
The stock market is a casualty in the Fed’s fight against inflation. Will the entire economy follow? If so, will the Fed make a dovish pivot?
Egypt’s Bread Crisis is the Canary in the Coal Mine
As global food and commodity prices surge, nations are turning inward to protect their own food security. For emerging economies, inflation has a particularly nasty bite.
Inflation: Good for Governments, Bad for You
When public debt starts hitting the tens of trillions, governments only have one option: inflate it away. Sorry citizens!
When the Dip Turns to a Waterfall
Individual investors are relentlessly “buying the dip,” yet stocks continue to tumble. Maybe it’s time to abandon the risky bets and get into something real?
Stocks Are All Dressed up With Nowhere to Go
WWIII looms, equities are getting clobbered, and investors are stacking up on cash. Cash redeployment will be a powerful force.
When Fed Ability Fails, Credibility Follows
The U.S. financial markets rest on how much investors trust the almighty Fed. Can they engineer a soft landing after so many egregious miscalculations and deteriorating credibility?
Hard Assets Shine as Paper Assets Fall
The changing world order comes with a new battle between financial assets, and commodities are winning.
History of Hard Money: Japan’s Lost Decade
Throughout the 1980s, Japan’s economy soared past the rest of the world. The growth that once earned the envy of investors and economists now stands as a dire warning against debt, speculation, and easy money.
Bond Market Bomb: Ready for a Recession?
The yield curve just inverted, a signal that has accurately predicted 10 out of the last 10 recessions. As investors exit the bond market, where will they go?
History of Hard Money: The Roman Empire
When Matthew wrote his gospel in 85 AD, one pure silver Denarius covered the daily wages of a skilled Roman craftsman. Three hundred years later, the Denarius had been reduced to a worthless scrap of copper alongside a crumbled empire.
Gold Breaks Above Declining Trendline
Macroeconomic and geopolitical risks are stimulating interest in gold, but the mass money transfer is only just beginning.
A beautiful bounce, but will gold continue?
As the gold market approaches a period of seasonal strength, investors will be watching for a higher high.
Key Takeaways:
- Gold has jumped back up to its $1,800 trading channel after putting in a higher low at $1,690.
- Historically, September has been gold’s strongest month in terms of price performance. Next month could follow suit.
- The U.S. Dollar continues to strengthen against other currencies, making gold more expensive for foreign investors and threatening gold’s rally.
Gold vs. Money Supply
The price of gold has tracked the rapid expansion of money supply throughout history, both in the United States and globally. As M2 continues its long-term parabolic growth, so will gold.
Key Takeaways:
- Gold found a new ceiling around $1,790 after a solid $100 bounce.
- The ratio between gold and M2 money supply suggests that gold’s long-term bull market has further to climb.
- The velocity of M2 money supply is sitting at all-time lows. A trend reversal could mean rapid inflation, and a flood of money moving into gold.
