Last week, we reported that Poland added 100 tons of gold to its reserves through the first half of the year and that it plans to move at least half of that hoard out of London to National Bank of Poland vaults in Warsaw. Although officials haven’t said so publicly, Poland’s move to repatriate part of its gold holdings indicates that there is perceived risk in keeping the metal stored in London, exacerbated by England’s confiscation of Venezuelan gold.
Peter Schiff recently appeared on RT with Rick Sanchez to talk about the subject. And he said the US is an even more dangerous place for other countries to store gold than Great Britain.
US Treasury Secretary Steve Mnuchin said the Trump administration and congressional leaders are getting closer to a deal to raise the debt ceiling.
Meanwhile, the US budget deficit is has increased by 23.1% year-on-year through the first nine months of fiscal 2019.
Mnuchin wants Congress to go ahead and raise the debt ceiling before the August recess because analysts now think the government will hit its borrowing limit earlier than expected.
Jerome Powell took center stage last week and the Federal Reserve chair didn’t do anything to dampen expectations of a rate cut. His comments sent both stocks and gold higher.
Peter Schiff recently appeared on RT Boom Bust with University of Amherst economics professor Richard Wolff to talk about the Fed and its impact on the markets. Pete said no matter what the Fed does, a recession is coming.
Last week, Independent Strategy head David Roche said gold could hit $2,000 by the end of the year. And Rosche isn’t the only big name in the investment world who sees a shiny future for the yellow metal. Mark Mobius recently said he thinks gold could push above $1,500 as central banks move interest rates lower, engage in more QE, and as geopolitical uncertainty continues to ramp up.
“I love gold,” Mobius said.
He also offered a bit of investment advice, saying gold should make up at least 10% of every investment portfolio — something Peter Schiff has been advising for a long time.
Jerome Powell took center stage this week and the Federal Reserve chair didn’t do anything to dampen expectations of a rate cut. That sent both stocks and gold higher. The yellow metal pushed back above $1,400 after tanking in the wake of last Friday’s June jobs report and stocks swooned. Everybody seems to love Easy Street. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey breaks down what the Fed chair said and didn’t say. He also debunks the “there is no inflation” myth and highlights some other interesting news in the gold markets.
The question often comes up: with all of the loosey-goosey monetary policy, historically low interest rates, liquidity injections and quantitative easing, why haven’t we seen huge bouts of price inflation?
Some people then take the next step and suggest that since we haven’t had huge bouts of inflation, this kind of loosey-goosey monetary policy should become the standard. With unlimited money at our fingertips, we can all have the proverbial free lunch.
Wolf Richter says there is a fatal flaw in this plan. Despite what the pundits tell you there have been huge bouts of inflation — “Pernicious, dangerous inflation.”
Gold will likely shine over the next six to 12 months as heightened risk meets easy money — this according to the World Gold Council’s mid-year outlook.
Gold ranked as one of the best-performing assets through the first half of 2019, beaten only by stock markets – which have also been supported by the turn toward looser monetary policy – and oil. And if you combine gold’s gains through H1 2019 and the Q4 2018, nothing beats it.
Holdings in global gold-backed ETFs surged in June, charting their largest increase in seven years driven by increased geopolitical uncertainty, fear of an economic slowdown and widespread anticipation of looser central bank monetary policy.
Globally, gold holdings in ETFs rose sharply by 127 tons last month, according to the latest data from the World Gold Council.
Poland has added 100 tons of gold to its reserves through the first half of this year and plans to move at least half of its hoard from England to National Bank of Poland vaults in Warsaw.
We’ve reported extensively on gold purchases by central banks, particularly China and Russia as those countries seek to diversify reserves and decrease their exposure to the US dollar. Just this week, China announced that it added another 10.3 tons of gold to its reserves in June. While many of the countries most aggressively buying gold have contentious relationships with the US, we’re seeing a growing number of “friendly” nations increasing their reserves as well.
The price of gold is up over 9.5% since the beginning of the year. One strategist who appeared on CNBC yesterday says he sees it going even higher – as high as $2,000 by the end of the year.
David Roche heads London-based Independent Strategy. During an interview on CNBC’s Squawk Box, he said he sees bad things to come in the stock markets but gold will shine.
I actually believe financial markets are now poised to crumble like a sand pile.”