Tag: gold price

Interest rates and its effect on Gold and precious metals

An interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. The assets borrowed could include cash, consumer goods, and large assets such as a vehicle or building. In terms of borrowed money, the interest rate is typically applied to the principal, which is the amount of money lent. The interest rate is the cost of debt for the borrower and the rate of return for the lender. So in other words, interest rates are the prices for holding or loaning money. Banks give out interest rates for saving money which attracts depositors. Banks also receive interest […]

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Effects of Inflation on Gold and Precious Metals

Inflation is characterized as a general increase in prices and fall in the purchasing value of money. But the question we want to answer is “How does this affect gold and precious metals?” We’ll get there in a moment. When the price levels rise, each unit of currency will buy you less goods and services, therefore, Inflation reduces the purchasing power per unit of money. This can affect the economy in various ways, like increase the opportunity cost of holding money, reduce the burden of private and public debt, change in the prices and demand for Gold and precious metals and so many more. Inflation and interest rates also have […]

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The Impact of the U.S. Economy on the Prices of Precious Metals

The price of precious metals, especially gold, reveals the true economic state of U.S. If today’s gold price is soaring high, it means that the economy is not healthy. It is because investors see gold as a safe haven on the verge of economic crisis. On the other hand, when the price of gold drops down, it signifies that the economy is healthy. Everything appears to be interdependent in modern complex economies, but it cannot be concluded that everything effects everything, including the value of gold. According to Fed Chairman Jerome Powell, in his first speech on the economic outlook since assuming the helm at the U.S. central bank on […]

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What Happens to the Price of Gold if Trump is Impeached?

The impeachment of Trump has been a revolving issue for quit a long time. What does impeachment mean? Impeachment is the process of getting rid of a president outside of election time. It is a long and difficult process at that – first, the House of Representatives has to vote by a majority to impeach a president and; second, it goes to the senate where two-thirds vote is required to actually remove the president. So, what happens to markets if the US President gets impeached? In the history or America, two presidents have notably gotten themselves into trouble, Clinton and Nixon. These lead to the resignation of Nixon and the […]

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Gold Prices Fall To The Thrill Of Investors

Gold Prices Fall To The Thrill Of Investors

The price of gold fell to a new low during the first week of July according to several reports that claim the decrease in value is due to a strong job market and the expectations of higher interest rates in the United States. August gold fell by $13.60, which is the equivalent of a 1.1 percent decrease in value. Such rate is the lowest since March when prices dropped by 2.6 percent. Silver also experienced its share of decline with initial values falling by as much as 10 percent on Friday (July 7). There was eventually a reversal in the numbers that increased September silver’s value from its original price […]

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Frank Holmes Exclusive: Gold Could Hit $1,500 in 2017 Amid Imbalances & Weak Supply

Frank Holmes Exclusive: Gold Could Hit $1,500 in 2017 Amid Imbalances & Weak Supply

Your browser does not support the podcast player element. DOWNLOAD MP3 Mike Gleason: We are fortunate today to be joined again by Frank Holmes, CEO and Chief Investment Officer at US Global Investors. Mr. Holmes has received various honors in recent months including being named America’s Best Fund Manager for 2016 by The Mining Journal and received two more Lipper awards just last month in both the three year and five year precious metals equity funds categories. He’s also the co-author of the book The Goldwatcher: Demystifying Gold Investing and is a regular guest on CNBC, Bloomberg, Fox Business, as well as right here on the Money Metals podcast. Frank, […]

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Idaho Democrat Leader Brain Malfunction: “We Can’t Say Gold Is Going to Protect Us from Inflation When [It has Risen from] $27 an Ounce to $1,218 an Ounce”

| March 17, 2017 | Category: Price

The Dunning-Kruger effect is the idea that low-ability people tend to suffer from illusory superiority. The phenomenon, first studied by David Dunning and Justin Kruger, says that people who know the least tend to overvalue their own competence, and tend to believe that they are experiencing some sort of upper-echelon level of thinking. While the original study was conducted in 1999, we witnessed what appeared to be the Dunning-Kruger effect in action this past Tuesday on the floor of the Idaho House of Representatives. And while it’s only March, but we also have identified the front-runner for our “Aurophobe of the Year” award.  (Aurophobia is the irrational fear of gold.) During the March 14th floor debate […]

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How Does the DOW Reaching 20,000 Affect Gold Prices?

The Dow industrial average reached the 20,000 mark last week for the first time in history. It’s all very exciting. But what does that actually mean? Is it something that really matters to investors? Would that matter whether you are investing in stock or precious metals like gold? The answer to the last two questions is a resounding yes. The Milestone Points to a Healthy Economy The Dow reaching 20,000 mark means that the economy is doing better than it did following the crash in 2009 and 2010. The stock market indices are doing better now than ever. In the last handful of years, the private sector has reaped enormous […]

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Gold Prices Are Being Hacked

Gold Prices Are Being Hacked

Major U.S. and international banks cheat their customers and rig markets. Revelations have been piling up since the 2008 financial crisis. Hundreds of billions have been paid in fines, penalties, and settlements. The fraud, price manipulation, lying, and theft – once considered conspiracy theories – are now incontrovertible conspiracy facts. This reality is dawning now in the precious metals industry. GATA, the Gold Anti-Trust Action Committee, labored for years making the case for price manipulation in the markets. They, and others, made a powerful argument complete with price charts and trading patterns that simply could not be explained in free and fair markets. But their argument was universally disregarded by […]

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How gold prices reacted following U.K. Third Quarter GDP

How gold prices reacted following U.K. Third Quarter GDP

The UK Brexit vote and the US presidential election combined to make 2016 a year in which investors are flocking to traditional assets as safe havens. As the global stage is awash with economic uncertainty, gold has been a primary asset trusted as a safe haven, driving prices and interest up for the larger part of 2016. Since the Trump victory, gold has seen something of a downturn and last week the UK announced its second estimate on the third quarter GDP. The first figure to cover the full three month time period since the country elected to leave the EU, the UK confirmed its economy grew 0.5% in the third quarter. This amid […]

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What’s Behind the Recent Surge in Volatility?

What’s Behind the Recent Surge in Volatility?

BY HARD ASSETS ALLIANCE It’s no secret that people don’t like uncertainty. By nature, humans are generally creatures of habit—preferring stability and safe outcomes. This is especially true when it comes to financial matters. However, financial markets are almost always facing some type of uncertainty, be it corporate earnings, interest rates, or geopolitical events. The issues are often benign and the outcomes are non-events, but as we know, there are always surprises causing markets to react. The volatility index, commonly referred to as the VIX, is a measure of investor uncertainty and fear of the unknown. The VIX can go months at a time meandering along without much direction and […]

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Gold Is a Safe Bet No Matter What the Fed Will Do

| November 10, 2016 | Category: Economy
Gold Is a Safe Bet No Matter What the Fed Will Do

By Olivier Garret Gold prices have dropped from $1,340 an ounce in September to as low as $1,250 late last week. This is largely due to forecasts of a rate hike by the US Federal Reserve. But the sharp drop in gold began to reverse on Monday. The price rose by more than $25 in just three trading days. Most gold analysts say the main reason for the bounce is reaction to comments made by Yellen last Friday. Judging from what Fed Chair Janet Yellen said last week, gold is likely to move up no matter what the US economy does. Fed Chair Yellen highlights plans for “high-pressure economy” In […]

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Climbing Gold and Silver’s Wall of Worry

Climbing Gold and Silver’s Wall of Worry

By Clint Siegner, Originally Published on Money Metals Exchange Confidence is slippery, even when you are a metals investor sitting atop the best performing assets of 2016. It doesn’t help when 4 years of a miserable bear market remains fresh in our memories. Any weakness in prices and it can feel like markets are getting ready to plunge right back to $13 silver and $1,000 gold. That feeling is called the “Wall of Worry”, and bulls are going to have to climb it by staying in the market even if their emotions are telling them to bail. Let’s review the last 6 weeks because they are quite instructional. June 1st: […]

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Future Gold Prices

Future Gold Prices

The internet is filled with predictions for the price of gold, from $500 to $50,000 per ounce. It depends on your world view. If you are a central banker or a powerful financial player which often supplies loyal employees to serve as Secretary of the U.S. Treasury, the low gold numbers look good. Or, if you understand the incredible $200+ Trillion of debt the world has accumulated and realize it can’t be repaid, then gold at $10,000 probably looks inevitable. Crashes occur and sovereign debt markets look like paper bubbles with disastrous potential to send gold much higher. A better approach to estimating future gold prices, in my opinion, is […]

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