During last week’s Federal Reserve Open Market Committee meeting, the central bank announced it would leave interest rates unchanged.
The announcement didn’t come as a surprise. With inflation weaker than expected in recent months, analysts widely expected the Fed to hold pat on rates. But Yellen and company did say they plan to begin shrinking the central bank’s balance sheet soon, a sign they want to remain on the path to “normalization.”
This raises a question: why now? Objectively speaking, the economy isn’t currently any stronger than it was a couple of years ago. It might even be weaker. Peter Schiff addressed this during a recent interview on RT’s Boom Bust. He said he thinks it’s because now the Fed has a fall-guy in Donald Trump.
Gold makes up an integral part of the economy of India in general, but for Indian women, it often serves as an economic lifeline.
Indians have a love affair with gold. The country ranks as the second largest consumer of the yellow metal in the world. It’s not just a luxury. Even the poor buy gold in India. The yellow metal is interwoven into the country’s marriage ceremonies, and cultural and religious rites. Indians also value gold as a store of wealth, especially in poor rural regions. Two-thirds of India’s gold demand comes from these areas, where the vast majority of people live outside the official tax system.
This article was submitted by Joel Bauman, SchiffGold Precious Metals Specialist. Any views expressed are his own and do not necessarily reflect the views of Peter Schiff or SchiffGold.
In this article focuses on the gold market through the lens of technical analysis. Technical analysis is a subjective form of analysis that requires a critical eye for price patterns. The goal is to use past price data to help forecast future price movement. While the focus is on gold, these observations may be extended to the silver market given their positive correlation.
Today we’re going to have fun at the expense of some poor man in Germany.
On the one hand, you’ll probably feel a little sorry for the guy. But — come on man!
Chalk this up as a lesson in how not to take care of your gold.
Not long ago, Federal Reserve chair Janet Yellen proclaimed an economic meltdown like the one we saw in 2008 will not likely happen again “in our lifetime.” Why? Because banks are “very much stronger.”
Apparently, at least some of the world’s big bankers don’t agree with Yellen’s assessment.
Over recent weeks, officials from a number of the world’s major banks have warned that the current trajectory is unsustainable, and a crash may loom on the horizon.
It’s easy to get caught up in what the Fed will do next, or the latest political brouhaha in Washington D.C. And of course, this stuff matters. But when it comes to gold, you should never lose sight of fundamentals.
Nothing is more fundamental than supply and demand. Based on the GFMS Gold Survey 2017 H1 Update Outlook, the fundamentals for gold are trending in a positive direction. Demand is pushing upward, while supply is falling.
Demand for physical gold rose to 1,895 tons in the first half of 2017, a 17% increase over the same period last year.
North Carolina Gov. Roy Cooper has signed a bill into law exempting the sale and purchase of gold and silver from state sales taxes. This removes one barrier from buying gold, silver and platinum. It will also help encourage their use and take the first step toward breaking the Federal Reserve’s monopoly on money.
We live in a world full of bubbles just waiting to pop.
We have reported extensively on the stock market bubble, the student loan bubble, and the auto bubble. We even told you about a shoe bubble. But there is one bubble that is bigger and potentially more threatening than any of these.
The massive debt bubble.
Despite what Warren Buffet might tell you, there are good reasons to buy gold.
In a speech several decades ago, the billionaire basically called the yellow metal useless.
[Gold] gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again, and pay people to stand around guarding it. It has no utility.”
In the first place, the statement is patently false. Gold is increasingly being used in technological applications from biomedical processes to energy production. But even if Buffet was right and there were no practical uses for the yellow metal, there would still be good reasons to buy gold – starting with the fact that gold is money.