During a podcast last month, Peter Schiff asked a key question: who is going to buy all of the debt necessary to finance the ballooning US deficit?
In his most recent analysis, Dan Kurtz at DK Analytics explores this question more in-depth and comes to generally the same conclusion.
The dollar has lost more than 8% of its value over the last year. That decline may accelerate as bond investors sell ahead of a huge expansion in Treasuries coming into the market. Interest rates will have to climb significantly. The price of bonds will drop. As Dan put it, where bonds go, stocks follow.
We’ve excerpted some key points from Dan’s report.
The stock market plunge earlier this month reminds us why we should buy gold. As a report released by the World Gold Council shows, gold acted as a portfolio hedge during the brief downturn. The price of gold rose as stocks sold off; as stocks partially retraced their losses, gold trended lower.
But gold’s effectiveness improves when market corrections are wider or sustained for longer. In our view, the recent selloff is a good reminder that gold can deliver returns and reduce risk in portfolios.”
This is some food for thought especially in light of the fact we are ripe for a 1987-style market crash.
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.
Investor Jim Rogers has seen a lot in 75 years. So when he starts talking about the worst bear market in our lifetime, we probably ought to sit up and take notice.
And that’s exactly what Rogers said in a recent phone interview with Bloomberg.
When we have a bear market again, and we are going to have a bear market again, it will be the worst in our lifetime.”
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.
The bears were running on Wall Street again Thursday, as the Dow Jones suffered another steep tumble. After a record drop of 1,175 points Tuesday and a rebound Wednesday, the Dow shed another 1,333 points.
The Dow Jones dropped 6.5% in four days. That’s the steepest decline in any week since October 2008. The S&P 500 has shed 6.6% of its value this week, its second-worst drop since 2008. The NASDAQ has also tanked, giving up all of its 2018 gains.
As Peter Schiff put it in his most recent podcast, “This market is looking ugly.”
In 2017, nearly 200 tons of gold flowed into gold-backed ETFs. That positive trend continued in January, according to a report released today by the World Gold Council.
Gold-backed ETFs added 27.6 tons last month, growing assets by 5%. Global gold-backed ETFs collectively held 2,396 tons of the yellow metal at the end of January with a value of about $103.6 billion.
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.
It’s no secret that 2017 was a down year for the precious metals market in the United States. Looking at US Mint sales figures tells the story. In 2016, the mint sold nearly 1 million ounces of American Gold Eagles. Sales figures in 2017 came in at just over 302,000 ounces.
Meanwhile, demand for gold surged in China last year. Imports of gold into India increased. So, what’s up with America?
In two words – Donald Trump.
Gold consumption in China grew 9.41% in 2017, according to information released by the China Gold Association. Gold jewelry demand, especially in poorer regions, helped drive overall demand higher.
The Chinese consumed 1,089 tons of the yellow metal last year. The South China Morning Post called the surge in demand “a big turnaround” after a 6.7% slump in 2016.
