Tag: inflation

“Is Your State Destroying Your Money?” Asks 2020 Sound Money Index, Released Today

| December 22, 2020 | Category: Economy
“Is Your State Destroying Your Money?” Asks 2020 Sound Money Index, Released Today

Precious Metals Dealer, Sound Money Group Rank all 50 States’ Gold and Silver Policies Charlotte, NC (December 16, 2020) — Wyoming, Texas, and Utah are the three most pro-sound money states in the United States, according to the 2020 Sound Money Index. Released today for 2020, the Sound Money Index is the first index of its kind and uses 12 different criteria to determine which states maintain the most pro- and anti-sound money policies in the nation. The Sound Money Index evaluates each state’s sales and income tax policies involving precious metals, whether a state recognizes the monetary role of gold and silver under the U.S. Constitution, whether a state […]

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Fed Recommits to Misleading the Public About Inflation

| December 17, 2020 | Category: Economy
Fed Recommits to Misleading the Public About Inflation

Did the Federal Reserve just usher in the next phase of the U.S. dollar’s decline? On Wednesday, the central bank recommitted to leaving its benchmark interest rate near zero for the foreseeable future. Fed officials also vowed to keep pumping cash into financial markets. Following Fed chairman Jerome Powell’s remarks, the wavering U.S. Dollar Index turned down – hitting a fresh new low for the year. Gold gained modestly on the day while silver got a bigger boost to close solidly above $25/oz, promptly heading to $26/oz the day following. Precious metals markets have been basing out over the past several weeks. They are struggling to attract safe-haven demand amid […]

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Markets Rallying on Hope, but Higher Taxes and Inflation Loom

| December 11, 2020 | Category: Economy
Markets Rallying on Hope, but Higher Taxes and Inflation Loom

For months, including this past week, markets have rallied on hopes for a vaccine and more stimulus – even as the real economy is suffering under expanding virus restrictions and as a stimulus deal keeps getting thwarted by partisans in Washington. Negative divergences are showing up, with market momentum waning and volume thinning in the major averages. Another threat markets seem to be overlooking – at least for now – is that of tax hikes under an incoming Joe Biden administration. More on that in a moment. But first, let’s review this week’s price moves in metals markets. Gold and silver attempted a rally early in the week, but bulls […]

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Beat the Coming ‘Taxflation’ Tsunami with Precious Metals

| December 10, 2020 | Category: Economy
Beat the Coming ‘Taxflation’ Tsunami with Precious Metals

The final weeks of the tumultuous year that has been 2020 present opportunities for investors to get their financial houses in order ahead of the New Year. Nobody knows what 2021 will bring. But new political risks are likely to emerge – including the threats of higher taxes and a more punitive IRS. With control of the U.S. Senate still up for grabs pending runoff elections in Georgia next month, and the final outcome of the presidential race still in dispute, an environment of uncertainty will reign for the remainder of the year. President Donald Trump continues to pursue a longshot campaign to rescind fraudulent election results in multiple states […]

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Get Ready for a Post-Election ‘Fed Wave’ of Inflation

| November 5, 2020 | Category: Economy
Get Ready for a Post-Election ‘Fed Wave’ of Inflation

As accusations of voting irregularities mount, President Donald Trump’s legal team is descending on Pennsylvania and Georgia as well as multiple battleground states that have been called by media outlets for Joe Biden. It will be an uphill battle for Trump to get to 270 electoral votes. As of this writing on Thursday morning, the final outcome of the presidential election remains uncertain. One thing that is now certain: Voters denied Democrats the “blue wave” many pollsters and pundits had been forecasting. Instead of a Biden landslide, a takeover of the Senate, and an expanded House majority, Democrats will instead have to share power with Republicans. The promise of divided […]

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The Fed’s Quest for Higher Inflation: What Could Go Wrong?

| October 8, 2020 | Category: Economy
The Fed’s Quest for Higher Inflation: What Could Go Wrong?

The Federal Reserve is warning investors in no uncertain terms that higher rates of inflation are coming. Yet markets, for the most part, have disregarded that warning. Bond yields, for example, remain well below 2% across the entire duration range. Stock market valuations continue to reflect a sanguine outlook for inflation. And crude oil futures suggest limited upside pressure on prices. It seems the Fed has a credibility problem. In August, Fed Chairman Jerome Powell announced that the central bank would begin targeting an inflation “average” of 2%. By the Fed’s measures, inflation has been running below 2% in recent years. So getting to a 2% average in the years […]

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Beware of These Faulty “Inflation Protected” Investments

| September 21, 2020 | Articles: Experts Talk
Beware of These Faulty “Inflation Protected” Investments

The Federal Reserve last week reiterated its commitment to an unprecedented inflation-raising campaign. Specifically, the Fed aims to push the inflation rate above 2% for an extended period. The risk for investors is that central bankers succeed in their mission to depreciate the currency more rapidly – perhaps even more rapidly than intended or acknowledged in the official (understated) inflation data. Inflation is a corrosive force that eats away at the real value of savings and investments. It is perhaps the biggest threat looming on the horizon for millions of retirees who have been steered into assets marketed as “conservative” – such as dollar-denominated money market accounts, bonds, and fixed […]

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Billionaire Hedge Fund Manager Warns of 10% Inflation

| September 11, 2020 | Category: Economy
Billionaire Hedge Fund Manager Warns of 10% Inflation

Over the past month, gold has traded in a range with support around $1,900. Bulls have made a couple unsuccessful attempts to retake and hold above the $2,000 level following the sharp plunge below it on August 11th. But we are likely to see a more decisive move in the gold market one way or the other in the days ahead. The near-term outlook for precious metals markets may be determined by where the U.S. Dollar Index heads next. It has been basing out since August after trending lower earlier in the summer. The Federal Reserve Note appreciated modestly against foreign currencies ahead of the European Central Bank’s policy meeting […]

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Rising Inflation Fears Transform Precious Metals Demand

Rising Inflation Fears Transform Precious Metals Demand

As Joe Biden announced his VP pick, Wall Street’s hopes for a V-shaped economic recovery were revived by falling jobless claims and the S&P 500 inching closer to an all-time high. Precious metals markets, meanwhile, were hit with a big V for Volatility. This past Tuesday, gold prices plunged by more than $100 in one of the biggest down moves ever for the precious metal in terms of nominal dollars. Of course, that move came off an historically high level of more than $2,000 an ounce. As gold prices rise over time – and we see nothing to suggest that they have topped out here long-term – we can expect […]

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Inflation Threat Looms in 2020 as Fiscal and Monetary Stimulus Ramp Up

| December 18, 2019 | Category: Economy
Inflation Threat Looms in 2020 as Fiscal and Monetary Stimulus Ramp Up

The Federal Reserve left its benchmark interest rate unchanged as expected last week. However, Fed Chairman Jerome Powell made news with some of his most dovish remarks to date – stating flatly that he won’t hike rates again until inflation moves up significantly. “In order to move rates up, I would want to see inflation that’s persistent and that’s significant,” Powell said at a news conference following the Fed’s announcement. He would be anticipating “a significant move up in inflation that’s also persistent before raising rates to address inflation concerns.” He could get his wish in the months ahead as monetary policy, fiscal policy, and the economy all seem to […]

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Time for Investors to Reset Their Portfolios for Inflation

| November 5, 2019 | Articles: Insights
Time for Investors to Reset Their Portfolios for Inflation

As investors reset their clocks to accord with the end of Daylight Savings Time, they may also need to reset their expectations for future returns. A strong body of research suggests that artificially changing the time twice a year – forward, then backward an hour – does more harm than good.  It leads to sleep disruptions, heightened stress, missed appointments, wasted time (ironically), and a diminishment of productivity around these biannual time changes. As reported in HeadlineHealth, “Circadian biologists believe ill health effects from daylight saving time result from a mismatch among the sun ‘clock,’ our social clock – work and school schedules – and the body’s internal 24-hour body clock.” […]

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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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Michael Pento: Inflation to Skyrocket When Fed Reverts to New QE & Interest Rate Cuts

Michael Pento: Inflation to Skyrocket When Fed Reverts to New QE & Interest Rate Cuts

Your browser does not support the podcast player element. DOWNLOAD MP3 Mike Gleason: It is my privilege now to welcome back Michael Pento, president and founder of Pento Portfolio Strategies and author of the book, The Coming Bond Market Collapse: How to Survive the Demise of the U.S. Debt Market. Michael is a well-known money manager and a fantastic market commentator, and over the past few years, has been a wonderful guest and one of our favorites here on the Money Metals Podcast. We always love getting his highly-studied Austrian economist viewpoint. Michael, welcome back, and thanks for joining us again. Michael Pento: Thanks for having me back on, Mike. […]

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The Relationship of Oil and Precious Metals

The Relationship of Oil and Precious Metals

Precious Metals and Oil have a History Precious metals, especially gold, have long been known for their incredible value and powerful purchasing power all over the globe. They are considered the standard of value for any currency that is used anywhere in the world. They are often referred to as crisis commodity as people flock into them especially in times of economic and geopolitical turmoil as they serve as inflationary and deflationary protection. Over the years, studies between the correlation of precious metals and other commodities such as oil have been a hot topic, which has been further ignited with recent global developments. Currently, the financial markets have become extremely […]

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