Double bubble. Double trouble. (See Quote of the Day)
Gold finished up $6.37 today at 1344.76 surging in price after the release of the Fed Open Market Committee’s statement on the past two days’ proceedings. Silver finished up 20¢ at $17.31. Both metals essentially picked up where they left off last week as the trend in place before the Fed meeting reasserted itself. Having traded as low $1334, gold jumped nearly $13 after the statement was released.
Things have settled down in Asian trading with the Japanese yen currently running sideways against the U.S. dollar. Mitsubishi, the Japanese bank, is telling its clients to hold gold as a defensive play for 2018 citing a weakening dollar, rising inflation and rising bond yields as the prime incentives.
Quote of the Day
“There are two bubbles: We have a stock market bubble, and we have a bond market bubble. At the end of the day, the bond market bubble will eventually be the critical issue, but for the short term it’s not too bad. . . What’s behind the bubble? Well the fact, that, essentially, we’re beginning to run an ever-larger government deficit . . Debt has been rising very significantly and we’re just not paying enough attention to that.” – Alan Greenspan, on Bloomberg television today.
The National Debt and Gold
Double bubble. Double trouble. Mr. Greenspan speaks briefly about the problem but the time constraints of a television interview keep him from telling how and why the national debt translates to major market risks. In The National Debt and Gold, one article in our six-part investor introductory information packet, we pick up where Alan Greenspan leaves off. If you enjoy a good historical tale with important implications in the here and now, we invite you to sign-up for our introductory packet.
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(The February issue is scheduled for next week.)