Category: Category: Investing
Don’t Be Fooled by the Stock Market Rally
Markets tend to move in cycles. They typically experience cyclical pullbacks after trending higher for a long period of time. Rarely do markets move straight up or straight down. The stock market has, however, essentially moved straight up since the March 2020 mini-crash. As the market moves higher, an increasing number of “analysts” are calling for even higher equity prices. Just last week, in fact, an analyst called for the broad market S&P 500 index to double by 2030. Calls for an 8000 S&P do not seem quite as farfetched as they did just a year ago. That is the power of greed (and wishful thinking) at work. It is […]
Volatility Increases as Markets Worry about Higher Rates
Hard assets quietly strengthen as attention focuses on blockchain and other crazes Gold and silver markets gyrated up and down following the Federal Reserve’s policy meeting on Wednesday. Fed chairman Jay Powell recommitted to keeping the central bank’s benchmark funds rate near zero. This, even as surging bond yields seem to be sending a market signal that rates need to move higher across the board. Fed policymakers are insisting they won’t hike rates at all this year and most likely not in 2022, either. Powell vowed that accommodative monetary policy will remain in force until the Fed sees official inflation rates persist above 2% over an unspecified period of time […]
Time to ‘Reset’ Your Investment Portfolio in 2021?
World Economic Forum chairman Klaus Schwab vows, “a renewed focus on public health and resilience, net-zero pledges and the arrival of Stakeholder Capitalism Metrics—all but ensure that 2021 will be a new ‘Year Zero.’” If global elites have their way, 2021 will be the year of the “Great Reset.” They believe now, after the coronavirus and lockdown policies have inflicted a heavy toll on the public, is the perfect opportunity to implement their technocratic vision. Their longstanding plans to transform economies in the name of various “sustainability” and “equity” goals are being aggressively implemented. The reset that is coming may not necessarily be the one that globalist central planners are trying […]
Pension Funds Start Looking to Gold to Avert Disaster
Public and private pension plans face a dual crisis. The first and most obvious threat to pensioners is that defined-benefit vehicles are severely underfunded. By one estimate, pension systems taken as a whole are $638 billion in the red. Some are in better shape financially than others. But all pension plans will have to reckon with a second huge challenge going forward. Namely, they are already entirely unable to meet their stated return objectives by owning conventional “safe” interest-bearing instruments such as Treasury bonds. Fed Declares War on Savers The Federal Reserve has effectively declared war on savers by vowing to hold short-term interest rates near zero, likely for years […]
Another Stock Market Selloff Could Drive More Bullion Buying
Investors got a look at first quarter GDP, and it wasn’t pretty. The U.S. economy contracted by 4.8%, even worse than the 3.3% decline anticipated by economists. In addition to that bad news, 4 million more Americans filed for unemployment last week. More than 30 million people have lost jobs over the past 6 weeks, and the situation is only getting worse. The S&P 500 lost 2.8% on Friday. Perhaps equity investors are beginning to wonder if share prices, which have moved relentlessly higher in recent weeks, accurately reflect the dismal economic data. Warren Buffett certainly is. The famed investor announced his company, Berkshire Hathaway, had sold all of its […]
The Oil Futures Crash Is a Warning to Gold Speculators
The metals complex showed relative stability this week as the oil market suffered a historic meltdown. West Texas Intermediate Crude crashed 70% at one point this week on the continuous contract, bringing prices briefly below $7 per barrel. By Thursday, prices were trading between $14 and $18 per barrel. The volatility on the May futures contract was even more extreme. On Monday, May futures for crude oil crashed to one dollar, then to zero, then to a few pennies below zero, then to an unbelievable negative $37 per barrel. With the world literally running out of places to store oil, oil contracts for immediate physical offtake represented a liability rather […]
Jp Cortez: Sound Money State Index Identifies Friends & Enemies of Precious Metals Investors
Mike Gleason: It is my privilege now to welcome in JP Cortez with the Sound Money Defense League, a nonpartisan national public policy organization working to restore sound money at the state and federal level. JP is a proponent of and has studied in the Austrian school of economics and his role at SMDL as Policy Director has him regularly testifying at legislative hearings and speaking at various events around the country. His articles and analysis have appeared in many national news publications including the Washington Examiner, Huffington Post, Mises Institute, Foundation For Economic Education and many more, and he’s a frequent guest on various podcasts and national radio shows […]
Gold ETF Holdings Surge… But Do They Actually Hold Gold?
Gold-linked exchange-traded products are growing in popularity with investors. Assets held by gold ETFs have grown 38% globally in 2019. In October, according to the World Gold Council, gold ETFs attracted $1.9 billion in net inflows to reach a new record high total gold holding of 2,900 tonnes – at least on paper. There is good reason to be skeptical of whether all these “gold” vehicles actually hold physical metal sufficient to back their market capitalizations on a 1:1 basis. Some of them very well might; others almost certainly don’t. In fact, many of these gold instruments hold futures contracts and other financial derivative products that merely “track” the gold […]
David Smith: Consider Precious Metals for Insurance First, Profit Second…
Mike Gleason: It is my privilege now to welcome back David Smith, senior analyst at The Morgan Report and regular contributor to MoneyMetals.com. David, good to talk to you and thanks for the time. How are you? David Smith: Same here, Mike. I’m just fine. It’s good to speak with you again. Interesting times indeed. Mike Gleason: They always are it seems. Well, you recently wrote a piece for the MoneyMetals.com site last week in which you termed this most recent correction in precious metals as “the last train out” for bulls. Gold and silver had been trading range bound for years now. We saw a false breakout in 2016 when silver ran do about $1 an ounce […]
Michael Pento Warns: Stock Market May Go Off the Cliff, Stagflation Like Never Before
“It’s Beyond the Twilight Zone to Have $13 Trillion in Debt with a Negative Yield” Your browser does not support the podcast player element. DOWNLOAD MP3 Mike Gleason: It is my privilege now to welcome back Micheal Pento, President and Founder of Pento Portfolio Strategies. Michael’s a well-known money manager and a terrific market commentator and author of the book The Coming Bond Market Collapse: How to Survive the Demise of the U.S. Debt Market. He’s a regular guest right here on the Money Metals Podcast and we always love having him on. Michael, thanks for the time again today and welcome back. Michael Pento: Great to be back on your program. Mike Gleason: Well […]
What is a Gold IRA?
A Gold IRA is a type of retirement account by which physical gold or other precious metals are held in custody for the benefit of the IRA account owner. It works like a regular IRA but instead of using paper assets, The IRA holds bullions and coins. So basically, Gold IRA is a type of investment vehicle used to save for retirement by buying or holding gold bullions and other approved precious metals. with your traditional or Roth IRA, you stash your savings in the form of stocks, bonds or mutual funds. In a Gold IRA, you use precious metals. You can also own many other precious metals aside from […]
China Takes the Long View on Gold-Silver… and So Should You
A cursory look at Chinese history can convince you that China should not be underestimated when it sets its sights on a particular goal. Even before Mao Zedong took over the reins in 1949, and the first Five Year Plan began in 1953, centuries of history demonstrated that long-term planning, while not always meeting expectations, is a core behavioral trait of the Chinese psyche. And more often than not, it has enabled them to hit the mark. Expect eventual success for the One Belt, One Road Initiative – the world’s largest construction project, estimated to cost $80 trillion dollars – linking the Asian mainland, (including Central Asia) with Europe via […]
New Warnings on Risky “Self Storage” Gold & Silver IRAs
Bullion investors buy gold and silver as a matter of self-reliance. Physical metals aren’t dependent upon the promises of financial institutions, governments, or other third parties. This lack of counterparty risk makes precious metals quite different from most conventional assets. There is no possibility of a default or mismanagement which renders them worthless. That is a lot more than can be said of securities such as stocks and bonds. Recently a few firms promoting “self-storage” precious metals IRAs have been trying to exploit the self-reliance streak running through bullion investors in a manner that could cause significant harm. These firms offer a scheme to circumvent IRS rules which require IRA […]
