The collapse of Chinese real estate giant Evergrande is being called, by some, China’s “Lehman Moment.” Whether or not it will be enough to trigger a cratering of China’s broader economy, it’s a massive reality check for a country that has transformed itself over the decades with unprecedentedly massive urbanization and economic growth. Evergrande, since its creation in 1996, has been at the forefront of that rise.
It’s no surprise to readers of this site that metals are often worth more than fiat currency. Gold, silver, and other precious metals are known for their value. But sometimes fiat currency can’t even compete with zinc.
ESG, or “Environment, Social, and Governance,” is the new feel-good buzzword in the halls of global corporations and megabanks. It’s a PR push to cloak morally disastrous firms in a veneer of social and environmental responsibility — lip service — but at the end of the day, I believe the market will speak.
At SchiffGold, while there are areas of disagreement with Warren Buffett’s right-hand man, the late Charlie Munger, his nuggets of wisdom, often referred to as ‘Mungerisms,’ hold considerable weight in the financial world. Covering topics from wealth and happiness to avoiding foolish mistakes, Munger’s insights are diverse.
The most direct way to invest in gold is to buy gold and as SchiffGold advises the smart way to buy gold is to buy gold coins or billions. Sometimes investors bullish on the long-term prospects of gold take a look at the stocks of gold mining companies. Stocks of course lack some of the most attractive features of gold such as physical portability, and its finite amount (stocks always be diluted). Plus, mining companies can go bankrupt and are at greater risk from new regulations.
On Super Bowl Sunday, President Biden took to X (formerly Twitter) to skewer consumer brands for “shrinkflation,” a phenomenon where product vendors reduce package sizes without proportionally reducing price, in what essentially amounts to a per unit cost increase for consumers. The video explicitly calls out popular snack brands such as Breyers, Gatorade, and Tostitos— all food products that are likely on the top of consumers’ minds when thinking of inflation.
It’s already looking like it could be a dramatic year for the US dollar, and a good time to check in on a few of the major troubled currencies around the world: the Turkish Lira, Argentine Peso, and Russian Ruble.
The silver price has dipped since December, from almost $26 per ounce to around $22 today. We reported on silver being a relative bargain at the time, and with lower spot prices and an even higher gold/silver ratio today, gold’s monetary sibling is looking like an even more attractive buy than it was late last year.
When members of Congress aren’t passing laws, holding committee meetings, or more cynically fundraising endless dollars, some of them choose to pass the time by trading stocks. And for whatever reason, keen insight or perhaps insider trading, members of Congress tend to beat the market.
When clients ask about the timing of selling their gold, I generally respond to their question with a question: “Do you have upcoming liquidity needs?” or “Is there a productive investment opportunity to deploy your capital?”