Tag: metals prices

Love. Fear. Inflation. A Precious Metals’ Trifecta

Love. Fear. Inflation. A Precious Metals’ Trifecta

By David Smith, Money Metals Exchange Going forward, there are – and will continue to be – three primary drivers of global physical gold (and silver) demand. During certain times in the past only one or two of these elements provided most of the momentum. However, as we move into 2019, and for possibly the next 5-10 years, all three will be in play. They will operate synergistically to consistently motivate increased precious metals’ buying around the globe. This will happen, even as meeting that demand with sufficient new supply becomes problematic. The term “synergistic” is used here on purpose. By definition, it relates to “the interaction or cooperation of […]

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Commodity Cycle Upturn to Lift Precious Metals Prices

Commodity Cycle Upturn to Lift Precious Metals Prices

Safe-haven demand for physical precious metals came in soft through the first half of the year as a rising stock market reinforced investor optimism toward the economy. U.S. stocks are expensive by just about every valuation measure you can think of – price/earnings, price/sales, dividend yield, total market capitalization as a percentage of GDP, etc. Even Fed chair Janet Yellen remarked recently that equity valuations appeared “rich.” The inverse of the extreme overvaluation in equities is the extreme relative cheapness of hard assets. Commodity indexes entered the summer at generational lows in real terms. The perception has been that the world is awash in plentiful, cheap oil. Just a few […]

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Precious Metals Rally Up to Trump Inauguration… Now What?

Precious Metals Rally Up to Trump Inauguration… Now What?

Gold and silver are off to a good start in 2017, advancing again last week into Donald Trump’s inauguration. If recent history is a guide, this year could bring some nice gains in precious metals. Bloomberg reports there have been gains in the gold market in the year following 6 of the past 7 presidents’ first inauguration. The average gain is 15%, dramatically outperforming the S&P 500 which loses, on average, about 1%. Recent gains in metals were driven largely by weakening in the Federal Reserve Note, aka the dollar. The dollar lost ground despite some hawkish remarks from Janet Yellen. Her speech was overshadowed by comments from Donald Trump, […]

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Trump World: What Happens to Your Investments Now?

Trump World: What Happens to Your Investments Now?

Donald Trump’s victory came as the first surprise for many around the world. The reaction in the markets was the second surprise. Investors got what they expected for a few hours overnight as the ballot results came in; stocks were crushed and metals spiked higher. By mid-morning on Wednesday, however, stocks were surging and metals rolled over. Now, a few days post-election, commentators and “experts” have written stories to explain the action in markets. Some of these stories may even prove true. But at this early stage, investors should recognize that markets mostly reflect hopes, fears, and high frequency trading shenanigans. Reality tends to arrive later. All eyes are focused […]

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