Do millennials get gold?
If you embrace the stereotypes, you may think not. After all, millennials have both feet firmly planted in the digital world. Gold is pretty “old-fashioned.” You might assume they would be far more interested in cryptocurrencies. Or perhaps you just figure millennials aren’t investing at all.
But as it turns out, the millennial generation seems to be just as interested in gold as their parents.
All eyes will focus on the Federal Reserve as it wraps up its June meeting. But it’s important to remember the Fed isn’t the only game in town. Moves by the European Central Bank also have a significant impact on the global economy (and the gold market) and it has taken a decidedly dovish turn.
Most analysts expect the Fed to hold interest rates steady in June, but potentially set the stage for a July rate cut. (Although Jim Grant said he thinks the Fed will actually cut this month.)
China dumped more US Treasurys in April, selling off another $7.5 billion in US debt, according to the latest US Treasury Department data. This follows on the heels of the biggest US Treasury selloff by the Chinese in nearly 2 1/2 years in March.
Over the last two months alone, the Chinese have dumped some $17.5 billion in US debt.
In an opinion piece published yesterday, a Chinese government newspaper called for the international community to find alternatives to the global dollar system and warned “capricious actions” by the United States government could “ruin the future of the dollar itself.”
This is yet another sign that the world is getting tired of the US weaponizing the dollar.
Consumer debt climbed to a new record once again in April. The question is how much money can American consumers borrow before the bubble pops?
Americans borrowed money at the fastest pace in five months in April, according to the latest Federal Reserve Consumer Credit Report. Total consumer credit increased by $17.5 billion. That’s an annual growth rate of 5.2%
Americans currently owe nearly $4.07 trillion.
If you were thinking federal government spending might slow down a bit after the national debt crossed the $22 trillion mark – well, it didn’t.
Last month, the federal budget deficit came in at $208 billion, according to Treasury Department data. It was the largest May deficit in history.
Uncle Sam spent $440 billion last month, up 21% year-on-year. Receipts increased to $232 billion, up 7% from May 2018.
A European payment system set up to circumvent US sanctions on Iran will be ready soon, according to German Foreign Minister Heiko Maas.
This is yet another move in a global effort to minimize dependence on the US dollar.
After a dip in demand in 2018, it appears Indians are buying gold again.
Anecdotal data seemed to indicate strong demand for the yellow metal in India during the Akshaya Tritiya holiday. Retailers reported sales were up by as much as 25%. As it turns out, demand was indeed strong. Gold imports into India were up 36% year-over-year in May, according to sources cited by Bloomberg.
China added to its official gold reserves for the sixth straight month in May as it continues efforts to minimize exposure to the dollar.
The People’s Bank of China increased its gold reserves by another 15.86 tons last month, according to data released by the bank on Monday. That raises the official Chinese gold reserves to 61.61 million ounces (1925.26 tons).
Central banks bought more gold in April, according to a report by the World Gold Council. This continues a gold-buying spree that stretches back to last year.
Globally, central bank net purchases of the yellow metal totaled 43 tons. That is an 8% increase month-on-month.
