The stock market has been rocked over the last week but gold has rallied. In his most recent podcast, Peter called gold “the real standout in the market.”
The price of gold finally woke up — or traders work up and notice how cheap gold is.”
Could we be heading toward $5,000 gold?
Last week, there was a big sell-off in the bond market. Yields on the 10-year Treasury soared 11 basis points in one day. Global stock markets sold off the following morning and US stock markets followed suit. This week, things really got really ugly on Wall Street. The Dow dropped over 1,300 points in two days. In a video for SchiffGold, Peter Schiff said stock market investors “finally took notice of the carnage that was going on in the bond market.”
On Thursday, the price of gold popped, rising nearly 3%. But despite all of the action this week, most people in the mainstream remain complacent. The narrative is that this is a normal bull market correction. Peter said nothing could be further from the truth.
The economy is even a bigger bubble than the stock market.”
The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.
Will work for gold!
Who wouldn’t right? I don’t know about you, but I would work even harder for some gold than I would for dollars, knowing the Federal Reserve isn’t going to inflate the value of my gold away by 2% or more every year.
Well, apparently people aren’t the only organisms that know the value of gold. Scientists have discovered a bacterium that will work for us and actually help us create energy. But you have to pay it in gold.
The Dow Jones fell 831 points Wednesday, a decline of more than 3%. Meanwhile, the S&P 500 charted its biggest daily decline since February and the Nasdaq Composite dropped 4.08 percent. This follows on the heels of a 200-point drop in the Dow last week after the 10-year US Treasury yield hit the highest level since 2011.
In a podcast last week, Peter Schiff said rising interest rates could serve as the pin that pricks the stock market bubble. In his most recent podcast, Peter said the stock market rout seems to confirm his feeling and warned a recession will follow.
US stock markets plunged Wednesday, shedding over 800 points. Could the be the popping bubble Ron Paul recently said was on the horizon? That remains to be seen. But equities in many emerging markets have been shedding value for several months. Take India for instance. As a recent article in the Economic Times of India put it, “Asset classes are in a state of churn. One look at the chaos in domestic equities is enough to suggest that not all is well with this segment.”
So what are Indian investors doing? Buying gold.
The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.
People love to cover things with gold. It’s pretty. But more than that, gold makes things more valuable.
In past Fun on Friday columns, I’ve highlighted some of the stuff people have coated with gold including earbuds, Nikes, a hairdryer, chicken wings, and soap. Well, this week I’ve got another for you, but I’m going to confess up front – this one annoys me.
The capitol dome in Denver Colorado was recently restored and covered with about 65 ounces of .9999 pure gold. Yup. They put gold on the roof of a government building.
After hitting their highest level in 15 months in August, analysts expect Indian gold imports to continue climbing in the fourth quarter.
The flow of gold into India hit a 15-month high when it more than doubled to 100 tons in August. Demand started climbing in July when imports jumped for the first time in seven months.
You can add Poland to the list of countries buying gold.
The Polish central bank added about seven tons of gold to its reserves in July and another two tons in August, according to International Monetary fund data. It was the largest gold purchase by Poland since 1998.
