The spread of coronavirus in China has made markets jittery. Stocks have gone into a slide and gold has pushed up on safe-haven buying. Last week, Peter Schiff appeared on RT Boom Bust to talk about it. He said that 2020 may well be a bad year for the stock market, but probably not because of the virus. The real problem is markets are overvalued and the air will eventually come out of the bubble.
Silver tends to get lost gold’s spotlight but there are reasons to consider adding silver to your portfolio as well. The silver-gold ratio remains at historically high levels. Practically speaking, this means silver is on sale. The supply and demand dynamics also look good for the white metal. Demand is up and global mine output fell last year.
There have been financial commentators, pundits, and asset managers who have stated that during periods of stagflation — low real GDP growth and high inflation — silver has underperformed gold. But as Dan Kurtz of DK Analytics shows, that conventional wisdom doesn’t hold up to scrutiny.
My stepdad used to grump about everything being made out of plastic. This was a thing with him even way back when I was a little kid. “All these plastic toys… back in my day toys were wood and metal.” It really got under his skin when they started using plastic in tools. He called them “cheap” even when they worked every bit as well as the old, heavy tools of “his day.”
Well, he’d really go ballistic if he were alive today because now they’re making gold out of plastic.
While impeachment proceedings kicked off at home President Trump was in Davos, Switzerland, talking up the US economy. He called it the best economy in American history. Is it though? In this episode of the Friday Gold Wrap podcast, host Mike Maharrey talks about the economy, what’s really driving it, and why this might be a good time to think about gold.
Rick Rule talked with David Lin of Kitco News at the Vancouver Resource Investment Conference. Rule is the senior managing director at Sprott Inc., and he’s bullish on gold. During this discussion, Rule explains why, touching on a range of subjects including the Federal Reserve, the trade war, the US dollar, the bond market and more.
To kick off the interview, Lin points out that gold has been rather range-bound since the price spiked in the wake of tensions in the Middle East. Rule said this is a sign of a healthy gold bull market.
Donald Trump was in Davos talking up the US economy in his typically hyperbolic terms. He called it “the greatest economy we’ve ever had in the history of our country.” To hear the president tell it, you would think that America is experiencing some kind of economic boom that has never been experienced by anybody in all of history. In his most recent podcast, Peter Schiff called this “nonsense.”
The price of gold is up by about 2.7% so far in 2020. But gold stocks are down on the year. Why is this happening and what is this telling us?
When we talk about gold stocks, we’re referring generally to stock in companies involved in gold mining and exploration. The valuation of these stocks as a group typically track with the price of physical gold. When the price of gold is going up, the miners typically follow along.
So, why this recent divergence?
On Jan. 19, Peter Schiff did an interview with Daniela Cambone on Kitco News to kick off the Vancouver Resource Investment Conference. Peter said gold is going to go through the roof, and he explained exactly why. He also offered a little historical context.
The interview began with a look at recent headlines in the news. With the war drums quieted and a Phase 1 trade deal signed, can markets breathe a sigh of relief?
It’s like Dawn of the Dead on Wall Street. Zombies are everywhere.
Even as stocks continue to push to new highs, the number of money-losing companies listed on US stock markets has ballooned to levels not seen since the dot-com bubble of the late 1990s.
According to a recent Wall Street Journal article, nearly 40% of US-listed companies are losing money.
Peter Schiff has been saying the Federal Reserve is going to let the inflation monster loose and this is going to be good for gold. Some people in the mainstream are starting to pick up on this theme.
During a recent interview with the Financial Times, Bridgewater Associates co-chief investment officer Greg Jensen said gold could surge over $2,000 as central banks embrace higher levels of inflation.