This article was submitted by Fabian Gambino, senior precious metals specialist and director of technology. Any views expressed are his own and do not necessarily reflect the views of Peter Schiff.
The Bureau of Economic Analysis (BEA) released its estimate for the second quarter of 2016. After a weak showing in the first quarter, many pundits predicted strong economic growth for April, May, and June. However, the reality was a modest 1.2% growth to GDP. In this month’s Schiff Report, Peter explains how these numbers could affect gold stocks and precious metals.
The former Fed Chairman Alan Greenspan appeared on Bloomberg last week to discuss the state of the US economy. He noted some economic indicators like bond yield spreads, rising entitlement costs, and stagflation, which are sending the US economy over the tipping point. What worries Greenspan the most is an environment of uncertainty that’s taken hold.
For example, Greenspan noted the spread between the 5 and 30-year treasury bonds is at its “widest level in American history.”
This article was submitted by Fabian Gambino, SchiffGold Precious Metals Specialist. Any views expressed are his own and do not necessarily reflect the views of Peter Schiff or SchiffGold.
Are Wall Street banks finally getting on the right side of the gold trade?
In an interview with CNBC, Solita Marcelli, global head of fixed income at JP Morgan, revealed that the Wall Street investment bank is recommending that clients position themselves for a “new and very long” bull market in gold.
She explained that negative interest rates around the world are making gold a more attractive investment. Since gold is a non-yielding asset and has minimal storage costs, it actually compares quite favorably with the increasing number of negative yield bonds on the global stage. It has a positive carry.