As uncertainty swirls around Brexit and exactly what that will mean for the economy, Brits have been hoarding gold.
We have seen a significant increase in demand for gold this month and at the end of last year, a trend which we have no doubt is largely attributed to Brexit turmoil and subsequent market volatility.”
Tocqueville Management Corp. chairman John Hathaway says the growing US government debt to GDP ratio poses “the most viable threat” to the US economy.
In his fourth-quarter investment letter, Hathaway said the ballooning US debt, coupled with a bear market and a recession, will likely weaken the dollar and send gold much higher in the near future.
Peter Schiff has said it’s not that we have a “volatile” economy right now. We have a bubble economy, and we are at the beginning of a much bigger crisis than we went through in 2008. Peter continued with this theme on a recent appearance on Kitco News with Daniela Cambone noting that things are setting up for gold to shine in 2019. As far as the yo-yoing stock market?
It’s just the air coming out of the bubble. That’s the volatility,” Peter said.
Bayern Munich soccer star Franck Ribéry struck back at detractors who went after him on social media because he had the audacity to post a video of himself eating a steak covered in 24-karat gold.
Oh, the horror!
Total holdings in global gold-backed ETFs finished above $100 billion in 2018, according to the latest data by the World Gold Council. It’s the first time ETF total gold holdings have eclipsed the $100 billion mark since 2012.
Globally, ETFs added 69 tons of gold in 2018, bringing total holdings to 2,440 tons valued at $100.6 billion.
2018 ended up as the worst year for US stocks in a decade. And last month ranked as the worst December on Wall Street since 1938. But if you owned gold, things weren’t quite as painful for you as they were for investors without any of the yellow metal. While stocks sagged, gold rallied.
In fact, gold outperformed the S&P 500 in December, through the fourth quarter, and over the entire year.
Last week, we saw more huge swings in US stock markets. On Thursday, stocks fell sharply, but they recaptured all the losses on Friday in the wake optimism about trade talks between the US and China, of a strong December jobs report, and “dovish” comments by Federal Reserve Chair Jerome Powell.
Peter Schiff hit on all of these topics in his most recent podcast.
Russia added another 36.6 tons of gold to its reserves in November, according to the latest data released by the World Gold Council.
This follows on the heels of a 29.9-ton increase to its hoard in October and a 37.8-ton increase in September.