Author Archives: MK

Trump delays metal tariffs on Canada, EU, Mexico, exempts some others

Reuters/David Lawder/5-1-2018

“In a statement, the White House said the details of the deals with Brazil, Argentina and Australia would be finalized shortly, and it did not disclose terms. ‘The administration is also extending negotiations with Canada, Mexico, and the European Union for a final 30 days. In all of these negotiations, the administration is focused on quotas that will restrain imports, prevent transshipment, and protect the national security,’ the White House added. A source familiar with the decision said there would be no further extensions beyond June 1 to stave off tariffs.”

Share
Posted in Today's top gold news and opinion |

LATE REPORT

Not much has changed since the EARLY REPORT was filed earlier today. Please scroll down the page if you missed it. Have a good evening. . . . .

Share
Posted in dailyquotes |

LATE REPORT

Not much has changed since the EARLY REPORT was filed earlier today. Please scroll down the page if you missed it. Have a good evening. . . . .

Share
Posted in Today's top gold news and opinion |

Gold off to rough start, it’s Fed Week

EARLY REPORT

The day got off to a rough start for gold with the metal trading down $11 at $1314, but this is to be expected. After all, it’s Fed Week and when the FOMC meets, it’s time to circle the wagons. Silver is also off in early trading – down 15¢ at $16.34. The talk is that the Fed could move from three rate increases to four before the year is out, but this is splitting hairs. That could happen or it could all change in a heartbeat should some unforeseen event or economic climate change suddenly intervene.

In the meantime, the markets will trade the perceived future as if it were reality, the algos will continue to spin out a high volume of one-way trades, and the gold market will suffer in the short term from trading linkages that may or may not hold up over the long run. For gold owners, it is a time to sit back and watch the show and do a little buying if you’ve been thinking about adding to your holdings on a dip. Quite often, Fed Week ends much differently than it begins.

Chart of the Day

Chart note: As we begin Fed Week, we thought it might be useful to post the overlay chart on gold and the effective Federal Funds rate. As you can see, since the Fed began raising interest rates in 2016, gold has tracked higher in concert with rising rates. Short-term trading, though it is the centerpiece of most reporting on the gold market, does not always reflect the long-term outcome.

Share
Posted in dailyquotes |

Gold off to rough start, it’s Fed Week

EARLY REPORT

The day got off to a rough start for gold with the metal trading down $11 at $1314, but this is to be expected.  After all, it’s Fed Week and when the FOMC meets, it’s time to circle the wagons.  Silver is also off in early trading – down 15¢ at $16.34.  The talk is that the Fed could move from three rate increases to four before the year is out, but this is splitting hairs.   That could happen or it could all change in a heartbeat should some unforeseen event or economic climate change suddenly intervene.

In the meantime, the markets will trade the perceived future as if it were reality, the algos will continue to spin out a high volume of one-way trades, and the gold market will suffer in the short term from trading linkages that may or may not hold up over the long run.  For gold owners, it is a time to sit back and watch the show and do a little buying if you’ve been thinking about adding to your holdings on a dip. Quite often, Fed Week ends much differently than it begins.

Chart of the Day

Chart note:  As we begin Fed Week, we thought it might be useful to post the overlay chart on gold and the effective Federal Funds rate.  As you can see, since the Fed began raising interest rates in 2016, gold has tracked higher in concert with rising rates.  Short-term trading, though it is the centerpiece of most reporting on the gold market, does not always reflect the long-term outcome.

Share
Posted in Today's top gold news and opinion |

Gold finishes day in minor uptrend on tepid GDP, possibility of a two front trade war

LATE REPORT

Gold, pushed by a tepid GDP report, finished the day in a minor uptrend at $1324.50 and up $6 on the day. Silver lost 5¢ despite gold’s positive showing and finished the day at $16.55. As the day moved along, gold also got a bit of help from German chancellor Angela Merkel’s frosty reception at the White House. She had no sooner climbed back into her limo that talk of a trade war between the United States and Europe popped up in financial media.

It seems the Trump administration is intent on opening a two-front trade war with simultaneous Pacific and Atlantic theaters. It is hard to imagine how such a process could unfold without ramped-up demand for physical metals by Asians, Europeans and Americans alike.

A word on next week’s FOMC meeting . . . .

The Federal Reserve’s Open Market Committee will meet Wednesday, May 2, and announce their decision on interest rates at 2pm EDT. Though Fed meetings in recent months have been kryptonite to the gold market this one might not be all that damaging. First, the Fed is not expected to announce a rate increase. It is saving that for June. Second, there will be no analysis, unexpected guidance or forecasting in its statement, at least there is not supposed to be. Third, there will be no press conference in which the words of the Chairman can be misconstrued, over-analyzed, parsed, re-defined or otherwise bent to the purposes of those rendering an opinion. Gold just might, as a result, escape unscathed.

Quote of the Day
“Gold is a special kind of currency (it is a bet against the U.S. dollar). This is what we have been repeating for a long time (for example, you can check out the July 2015 edition of the Market Overview), but that simple message has not yet reached all investors. So they commit the same mistakes all the time. They focus on irrelevant factors, such as mining dynamics. Or they listen to Warrant Buffet and don’t own any gold. He has the right: gold is neither an industrial commodity, nor an asset generating cash flows. But so what? It’s like complaining to the lion that it’s not an elephant or a giraffe! So please remember one of the most important lessons about the yellow metal’s fundamentals: gold is more currency than commodity.” – Arkadiusz Sieron


Recent Better Business Review

“Thank you so much for your high rating for USAGOLD, Denver. They were recommended by a close friend and I researched them on your website in Oct 2009 and have been in touch with them ever since. I am now in full trust with their extraordinary business of great integrity and expertise. I will always deal with them . . Again, thank you for your expert ratings.”

Scorecard: 45 five star reviews. Zero complaints.
A+ rating. Accredited since 1991.

[Link]

We are happy to help with your questions
and get you started on the right track.

ORDER DESK.
1-800-869-5115
Extensions #100
8am to 7pm weekdays.

To end right, start right.
Choose the right portfolio mix with the right firm at the right price.
Choose USAGOLD – reliably serving physical gold and silver investors since 1973.

 

Share
Posted in dailyquotes |

Gold finishes day in minor uptrend on tepid GDP, possibility of a two front trade war

LATE REPORT

Gold, pushed by a tepid GDP report, finished the day in a minor uptrend at $1324.50 and up $6 on the day.  Silver lost 5¢ despite gold’s positive showing and finished the day at $16.55.   As the day moved along, gold also got a bit of help from German chancellor Angela Merkel’s frosty reception at the White House.  She had no sooner climbed back into her limo that talk of a trade war between the United States and Europe popped up in financial media.

It seems the Trump administration is intent on opening a two-front trade war with simultaneous Pacific and Atlantic theaters. It is hard to imagine how such a process could unfold without ramped-up demand for physical metals by Asians, Europeans and Americans alike.

A word on next week’s FOMC meeting . . . .

The Federal Reserve’s Open Market Committee will meet Wednesday, May 2, and announce their decision on interest rates at 2pm EDT. Though Fed meetings in recent months have been kryptonite to the gold market this one might not be all that damaging.  First, the Fed is not expected to announce a rate increase.  It is saving that for June.  Second, there will be no analysis, unexpected guidance or forecasting in its statement, at least there is not supposed to be.  Third, there will be no press conference in which the words of the Chairman can be misconstrued, over-analyzed, parsed, re-defined or otherwise bent to the purposes of those rendering an opinion. Gold just might, as a result, escape unscathed.

Quote of the Day
“Gold is a special kind of currency (it is a bet against the U.S. dollar). This is what we have been repeating for a long time (for example, you can check out the July 2015 edition of the Market Overview), but that simple message has not yet reached all investors. So they commit the same mistakes all the time. They focus on irrelevant factors, such as mining dynamics. Or they listen to Warrant Buffet and don’t own any gold. He has the right: gold is neither an industrial commodity, nor an asset generating cash flows. But so what? It’s like complaining to the lion that it’s not an elephant or a giraffe! So please remember one of the most important lessons about the yellow metal’s fundamentals: gold is more currency than commodity.” – Arkadiusz Sieron


Recent Better Business Review

“Thank you so much for your high rating for USAGOLD, Denver. They were recommended by a close friend and I researched them on your website in Oct 2009 and have been in touch with them ever since. I am now in full trust with their extraordinary business of great integrity and expertise. I will always deal with them . . Again, thank you for your expert ratings.”

Scorecard: 38 five star reviews. Zero complaints.
A+ rating. Accredited since 1991.

[Link]

We are happy to help with your questions
and get you started on the right track.

ORDER DESK.
1-800-869-5115
Extensions #100
8am to 7pm weekdays.

To end right, start right.
Choose the right portfolio mix with the right firm at the right price.
Choose USAGOLD – reliably serving physical gold and silver investors since 1973.

 

Share
Posted in Today's top gold news and opinion |

Gold gets its head above water on tepid GDP number

EARLY REPORT

Gold managed to get its head above water in today’s early going after the GDP came in 2.3% higher in the first quarter. That’s down from the 2.9% gain for the fourth quarter last year and pretty much directionally challenged from the Trump administration’s point of view. As it stands now, the markets seem a bit confused about the results, but things should become clearer as the day progresses. The markets are also attempting to sort out whether or not the latest cozying-up between the two Koreas translates to a real change or another false spring.

Gold is up $4 at $1322 and silver is down 5¢ at $16.51.  As pointed out in yesterday’s EARLY REPORT, the dollar remains range-bound despite recent monetary policy announcements in Japan and Europe that should have sent it soaring.  Both countries will leave their quantitative easing programs in place while the United States tightens. The fact that it cannot seem to get unstuck may be taken as a sign that the dollar’s mini-rally that began mid-April might be running out of gas.  Beyond that, there is the larger concern that the dollar might resume the downtrend that began in 2017.

Chart of the Day

Chart note: The log chart illustrates gold’s journey through the fiat money era without the drama implied in the arithmetic chart we are used to seeing. “Common percent changes,” says Investopedia, “are represented by an equal spacing between the numbers in the scale. For example, the distance between $10 and $20 is equal to the distance between $20 and $40 because both scenarios represent a 100% increase in price.” Linear charts, in short, emphasize nominal price movement while a log chart emphasizes the percentage movement and, as such, offers the more practical portrayal of price movement from an investment perspective.

Share
Posted in dailyquotes |

Gold gets its head above water on tepid GDP number

EARLY REPORT

Gold managed to get its head above water in today’s early going after the GDP came in 2.3% higher in the first quarter.  That’s down from the 2.9% gain for the fourth quarter last year and pretty much directionally challenged from the Trump administration’s point of view.  As it stands now, the markets seem a bit confused about the results, but things should become clearer as the day progresses. The markets are also attempting to sort out whether or not the latest cozying-up between the two Koreas translates to a real change or another false spring.

Gold is up $4 at $1322 and silver is down 5¢ at $16.51.  As pointed out in yesterday’s EARLY REPORT, the dollar remains range-bound despite recent monetary policy announcements in Japan and Europe that should have sent it soaring.  Both countries will leave their quantitative easing programs in place while the United States tightens. The fact that it cannot seem to get unstuck may be taken as a sign that the dollar’s mini-rally that began mid-April might be running out of gas.  Beyond that, there is the larger concern that the dollar might resume the downtrend that began in 2017.

Chart of the Day

Chart note:  The log chart illustrates gold’s journey through the fiat money era without the drama implied in the arithmetic chart we are used to seeing.  “Common percent changes,” says Investopedia, “are represented by an equal spacing between the numbers in the scale. For example, the distance between $10 and $20 is equal to the distance between $20 and $40 because both scenarios represent a 100% increase in price.”  Linear charts, in short, emphasize nominal price movement while a log chart emphasizes the percentage movement and, as such, offers the more practical portrayal of price movement from an investment perspective.

Share
Posted in Today's top gold news and opinion |

LATE REPORT

Not much has changed since the EARLY REPORT was filed earlier today. Please scroll down the page if you missed it. Have a good evening. . . . .

Share
Posted in dailyquotes |

LATE REPORT

Not much has changed since the EARLY REPORT was filed earlier today. Please scroll down the page if you missed it. Have a good evening. . . . .

Share
Posted in Today's top gold news and opinion |

Gold struggles as ECB signals “long goodbye to QE”

EARLY REPORT

Gold is struggling again this morning for the second day in a row trading at $1318.50 and down about $4.50 on the day. Silver is also down this morning at $16.47 (-13¢).

Today we learn that the ECB will put a hold on rates accompanied by a Financial Times headline that there will be a “long goodbye for QE” in the European Union. Matching that statement of intent, the Bank of Japan announced a similar course of action over last weekend. Meanwhile, the Federal Reserve has not backed off its intent to tighten policy even as many raise concerns about an “end of cycle” recession looming on the immediate horizon. All this should have sent the dollar on a tear, but it hasn’t. One wonders why. . . . .and what Mr. Market is trying to tell us.

I will round out today’s report with a bracing prediction from Standard Charter’s Suki Cooper who told CNBC earlier today that she sees gold testing five year highs by the end of the year starting after the Fed’s rate meeting in June. Gold upside, she says, would come in concert with a weakening trend in the U.S. dollar. That five year high as shown in our Chart of the Day is $1700 and, needless to say, would constitute a dramatic upside correction.

Chart of the Day

Share
Posted in Today's top gold news and opinion |

Gold struggles as ECB signals “long goodbye to QE”

EARLY REPORT

Gold is struggling again this morning for the second day in a row trading at $1318.50 and down about $4.50 on the day.  Silver is also down this morning at $16.47 (-13¢).

Today we learn that the ECB will put a hold on rates accompanied by a Financial Times headline that there will be a “long goodbye for QE” in the European Union.  Matching that statement of intent, the Bank of Japan announced a similar course of action over last weekend.  Meanwhile, the Federal Reserve has not backed off its intent to tighten policy even as many raise concerns about an “end of cycle” recession looming on the immediate horizon. All this should have sent the dollar on a tear, but it hasn’t.  One wonders why. . . . .and what Mr. Market is trying to tell us.

I will round out today’s report with a bracing prediction from Standard Charter’s Suki Cooper who told CNBC earlier today that she sees gold testing five year highs by the end of the year starting after the Fed’s rate meeting in June.  Gold upside, she says, would come in concert with a weakening trend in the U.S. dollar.  That five year high as shown in our Chart of the Day is $1700 and, needless to say, would constitute a dramatic upside correction.

Chart of the Day

Share
Posted in dailyquotes |

Gold stabilizes as day wears on, unsure how to react to rate environment

LATE REPORT

Gold stabilized as the day wore on seemingly unsure how it should react to the 10-year Treasury establishing itself firmly above the 3% mark at 3.031%. It finished the day down $9.50 at $1322. Silver closed down 18¢ on the day at $16.57. Reuters reports rates being generally driven higher by the “growing supply of government debt and inflationary pressures from rising prices.” If that is truly the case, it is difficult to explain gold’s downside today. Historically, those two maladies – inflation and government debt – have served as inducement for higher prices not the opposite.

As for rising interest rates themselves, Investopedia has this to say on the subject: “While popular opinion is that interest rate hikes have a bearish effect on gold prices, the effect that an interest rate increase has on gold, if any, is unknown, since there is actually little solid correlation between interest rates and gold prices. Rising interest rates may even have a bullish effect on gold prices.” So, we shall wait patiently for the market to come to its senses, which if Jeffrey Gundlach is proven correct is something in the works.

Quote of the Day
“The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.” – Ernest Hemingway


Recent BBB client review
(One of 45 five star reviews published at the BBB website)

“In June, 2009, I decided to make gold ownership an essential part of my investment portfolio. Based on the recommendation of financial professionals, and because I liked that they had been in business for so long, I contacted USAGOLD. After a thorough review of my financial goals and budget constraints, they provided me with a comprehensive set of suggestions as to which gold coins, and what quantities, I should consider. That advice perfectly addressed my investment needs and I have been a customer ever since. Over my years with USAGOLD, I have completed several transactions, both buying and selling gold. Each one was handled with the highest integrity, and the advice I received was always reliable, based on their extensive awareness of current and projected market conditions for gold. I recommend them without reservation. Do not make a decision regarding gold ownership without contacting them.” – Jack D.

If the market madness of the past few weeks has you thinking you might need to hedge your portfolio with gold and silver, we invite to get in touch with us. We will provide the same kind of pricing and service that has made Jack D. a long-time client and friend of the firm.

1-800-869-5115
Extension #100
–– or ––
If you prefer e-mail to get started
orderdesk@usagold.com </

Share
Posted in dailyquotes |

Gold stabilizes as day wears on, unsure how to react to rate environment

LATE REPORT

Gold stabilized as the day wore on seemingly unsure how it should react to the 10-year Treasury establishing itself firmly above the 3% mark at 3.031%.  It finished the day down $9.50 at $1322. Silver closed down 18¢ on the day at $16.57.  Reuters reports rates being generally driven higher by the “growing supply of government debt and inflationary pressures from rising prices.” If that is truly the case, it is difficult to explain gold’s downside today. Historically, those two maladies – inflation and government debt – have served as inducement for higher prices not the opposite.

As for rising interest rates themselves, Investopedia has this to say on the subject: “While popular opinion is that interest rate hikes have a bearish effect on gold prices, the effect that an interest rate increase has on gold, if any, is unknown, since there is actually little solid correlation between interest rates and gold prices. Rising interest rates may even have a bullish effect on gold prices.”  So, we shall wait patiently for the market to come to its senses, which if Jeffrey Gundlach is proven correct is something in the works.

Quote of the Day
“The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.” – Ernest Hemingway


Recent BBB client review
(One of 45 five star reviews published at the BBB website)

“In June, 2009, I decided to make gold ownership an essential part of my investment portfolio. Based on the recommendation of financial professionals, and because I liked that they had been in business for so long, I contacted USAGOLD. After a thorough review of my financial goals and budget constraints, they provided me with a comprehensive set of suggestions as to which gold coins, and what quantities, I should consider. That advice perfectly addressed my investment needs and I have been a customer ever since. Over my years with USAGOLD, I have completed several transactions, both buying and selling gold. Each one was handled with the highest integrity, and the advice I received was always reliable, based on their extensive awareness of current and projected market conditions for gold. I recommend them without reservation. Do not make a decision regarding gold ownership without contacting them.” – Jack D.

If the market madness of the past few weeks has you thinking you might need to hedge your portfolio with gold and silver, we invite to get in touch with us. We will provide the same kind of pricing and service that has made Jack D. a long-time client and friend of the firm.

1-800-869-5115
Extension #100
–– or ––
If you prefer e-mail to get started
orderdesk@usagold.com </

Share
Posted in Today's top gold news and opinion |

Gold and other markets await bond auction outcome

EARLY REPORT

Gold, along with the stock and bond markets, are trading tentatively this morning awaiting the outcome of the Treasury Department’s auction of $52 billion two and five year notes – an offering bond market participants described as “massive” earlier in the week. The benchmark yield on the 10-year note closed at over the 3% mark yesterday and remains firm at that level this morning. Any weakness in demand could push rates higher as the day progresses with consequent effects on the rest of the financial markets.

Gold is down $9.50 in the early going at $1322 in the FOREX market and attempting to gain traction while silver is down 17¢ at $16.60. The dollar is equally entangled in the bond market drama, but slightly higher this morning with strength against the Japanese yen the most notable factor. Japan’s central bank chief Kuroda a few days ago made it clear that the Bank of Japan would continue full on with its quantitative easing program for the foreseeable future – a choice that kicked the stool out from under the yen.

Chart of the Day

Chart courtesy of TradingEconomics.com

Chart note: It pays to have a little perspective and this chart offers plenty. As you can see, despite all the hoopla in the financial media about a strong dollar in recent weeks, the real story is its weakness. The related story is gold’s strength – up 15% since January, 2017 – even with the current price weakness taken into account.

Share
Posted in dailyquotes |

Gold and other markets await bond auction outcome

EARLY REPORT

Gold, along with the stock and bond markets, are trading tentatively this morning awaiting the outcome of the Treasury Department’s auction of $52 billion two and five year notes – an offering bond market participants described as “massive” earlier in the week.  The benchmark yield on the 10-year note closed at over the 3% mark yesterday and remains firm at that level this morning.  Any weakness in demand could push rates higher as the day progresses with consequent effects on the rest of the financial markets.

Gold is down $9.50 in the early going at $1322 in the FOREX market and attempting to gain traction while silver is down 17¢ at $16.60.  The dollar is equally entangled in the bond market drama, but slightly higher this morning with strength against the Japanese yen the most notable factor.  Japan’s central bank chief Kuroda a few days ago made it clear that the Bank of Japan would continue full on with its quantitative easing program for the foreseeable future – a choice that kicked the stool out from under the yen.

Chart of the Day

Chart courtesy of TradingEconomics.com

Chart note:  It pays to have a little perspective and this chart offers plenty.  As you can see, despite all the hoopla in the financial media about a strong dollar in recent weeks, the real story is its weakness.  The related story is gold’s strength – up 15% since January, 2017 – even with the current price weakness taken into account.

Share
Posted in Today's top gold news and opinion |

Gold finishes higher – a day worth noting

LATE REPORT

Gold finished the day higher – up $6 at $1331. Gold doesn’t always do well when the stock market tumbles, but it did well today, and the fact that it did will not have escaped the notice of a good many market analysts. Today’s upside also broke precedent with another oft-repeated, but false premise – that gold responds negatively to rising interest rates. As such, though nothing to write home about in terms of dollar gains, it was a day worth noting for precious metals bulls. Silver also finished in positive territory – up 6¢ at $16.75.

Quote of the Day
“We have found that gold typically thrives amid deeper, longer-lasting and fundamentally driven bear markets, which are usually associated with a deteriorating macroeconomic outlook. Alternatively, gold’s performance is usually tepid when equities rise. A good analogy is home insurance: homeowners pay an insurance premium each year hoping the house doesn’t burn down, but if it does you redeem the policy. Here, we see gold’s “insurance characteristics” as becoming increasingly relevant for investors. But even if the insurance is not needed, gold could still offer value. If the US dollar slides (which we expect), emerging economies become wealthier while mining costs increase. Prices could therefore advance irrespective of US inflation, making gold more than just an insurance asset.” – Wayne Gordon, UBS Wealth Management


How to choose a gold firm
A quick guideline for beginning investors

It is surprising how many prospective investors simply dive into gold and silver investing without much in the way of a consumer inquiry. That lack of simple due diligence has ended up costing a good many investors thousands of dollars, and sometimes even hundreds of thousands, before the damage is detected.

Here you will find some brief but valuable guidelines to help you choose the right gold and silver company.

It might be the most important decision you will make on the road to becoming a gold and silver owner.

To end right, start right.
Choose the right portfolio mix with the right firm at the right price.
Choose USAGOLD – reliably serving physical gold and silver investors since 1973.
Share
Posted in dailyquotes |

Gold finishes higher – a day worth noting

LATE REPORT

Gold finished the day higher – up $6 at $1331. Gold doesn’t always do well when the stock market tumbles, but it did well today, and the fact that it did will not have escaped the notice of a good many market analysts. Today’s upside also broke precedent with another oft-repeated, but false premise – that gold responds negatively to rising interest rates. As such, though nothing to write home about in terms of dollar gains, it was a day worth noting for precious metals bulls. Silver also finished in positive territory – up 6¢ at $16.75.

Quote of the Day
“We have found that gold typically thrives amid deeper, longer-lasting and fundamentally driven bear markets, which are usually associated with a deteriorating macroeconomic outlook. Alternatively, gold’s performance is usually tepid when equities rise. A good analogy is home insurance: homeowners pay an insurance premium each year hoping the house doesn’t burn down, but if it does you redeem the policy. Here, we see gold’s “insurance characteristics” as becoming increasingly relevant for investors. But even if the insurance is not needed, gold could still offer value. If the US dollar slides (which we expect), emerging economies become wealthier while mining costs increase. Prices could therefore advance irrespective of US inflation, making gold more than just an insurance asset.” – Wayne Gordon, UBS Wealth Management


How to choose a gold firm
A quick guideline for beginning investors

It is surprising how many prospective investors simply dive into gold and silver investing without much in the way of a consumer inquiry. That lack of simple due diligence has ended up costing a good many investors thousands of dollars, and sometimes even hundreds of thousands, before the damage is detected.

Here you will find some brief but valuable guidelines to help you choose the right gold and silver company.

It might be the most important decision you will make on the road to becoming a gold and silver owner.

To end right, start right.
Choose the right portfolio mix with the right firm at the right price.
Choose USAGOLD – reliably serving physical gold and silver investors since 1973.
Share
Posted in Today's top gold news and opinion |

If you can’t afford to lose 30% of your retirement savings today, you must own gold

GOLD IRA GUIDELINE

Forbes/Olivier Garret/4-24-2018

“A customer of mine who is 55 years old recently asked if it was not too late for him to get into precious metals. The answer is no—it is not too late to invest in gold and make a profit at any age. Quite the contrary, with the market showing the early signs of a correction, it is, in my humble opinion, a perfect time to invest in precious metals.”


What you need to know before you
launch your gold and silver IRA

Hedging economic uncertainty in your retirement plan

As the ultimate asset preservation vehicle, gold is also an important retirement investment especially in these precarious times.  Find safe harbor –– and some retirement peace of mind.

To end right, start right.
Choose the right portfolio mix with the right firm at the right price.
Choose USAGOLD serving gold and silver investors since 1973

We have helped hundreds of investors include precious metals in their IRA and other retirement plans.  We can help you.

1-800-869-5115 Ext#100

Share
Posted in Today's top gold news and opinion |

Here come the petrodollars, back to save global asset prices

Bloomberg/Tracy Alloway and Sid Verma/4-24-2018

“The breakout in oil could further loosen financial conditions by pressuring the U.S. dollar. If benchmark crude rises “further through” $70 to $80 per barrel, sovereign wealth funds could diversify their foreign-exchange holdings — potentially creating a headwind for the beleaguered greenback, according to Mansoor Mohi-uddin, head of currency strategy at NatWest Markets in Singapore.

Over the past decade, changes in the Brent price were often positively correlated with the euro — particularly when the commodity exceeded the fiscal and current-account benchmarks of exporting nations. The relationship has largely vanished over the past 12 months but could return once again if oil prices continue to march higher.”

MK note: Gulf oil producers have always had a penchant for gold going back to Ibn Saud’s swap of oil rights in the 1930s for a very large stash of gold British sovereigns. Given the concern about the long term value of the dollar as a reserve holding, it is unlikely that wealthy producers would leave gold out of a petrodollar diversification strategy.  As in the past, that diversification is likely to be handled quietly and discreetly.

Share
Posted in Today's top gold news and opinion |

10-year Treasury yield tops 3% for first time since 2014, a key interest rate milestone that should ripple through the financial markets

UPDATE TO THIS MORNING’S EARLY REPORT

CNBC/Thomas Franck/4-24-2018

“The yield on the benchmark 10-year Treasury note hit the key psychological level of 3 percent Tuesday for the first time since January 2014 on Tuesday. The yield on the two-year Treasury note also set a multiyear record Tuesday, topping 2.5 percent for the first time since September 2008. The yield inched past 3 percent shortly after the open of stock trading on Tuesday before pulling back slightly.”

MK note:  As mentioned in our market reports the past two days, this nudge above the 3% level comes in a week when the U.S. Treasury seeks to finance another nearly $100 billion in government paper.  It is difficult to assess how various markets will react.  Time will tell.  At the moment gold and silver are reacting favorably. Though important, this back and forth at the 3% yield level is a way station on a much more complicated and extended journey.

Share
Posted in Today's top gold news and opinion |

Gold up modestly as markets reconcile opposing viewpoints

EARLY REPORT

Gold is up modestly at $1328 (+$3) in early trading as markets attempt to reconcile a trio of concerns – a massive issue of U.S. government debt this week, rising oil and commodity prices and background trade and geopolitical tensions between the United States and a host of foreign countries. Some see the glass as half full, other see it as half empty on all three issues, a situation that translates to see-saw markets that objectively cannot seem to find their footing.  Silver is also up a bit at $16.71 (+5¢).  Even the dollar cannot seem to make up its mind – a very good day yesterday has given way to a not so good day today.

Chart of the Day

Chart note: Oil hit a three-year high today – continuing its recent triek higher on Mideast concerns, specifically the confrontation between Saudi Arabia and Iran taking place in Yemen. In at least a generalized sense oil and gold have been traveling companions since 2000, though not in lock-step. Gold, too, has held up better than oil in the down times – oil being the more volatile of the two. Oil prices are important in the context of inflation because so much of what is produced or manufactured in the United States has an oil component in the pricing equation.

Share
Posted in dailyquotes |

Gold up modestly as markets reconcile opposing viewpoints

EARLY REPORT

Gold is up modestly at $1328 (+$3) in early trading as markets attempt to reconcile a trio of concerns – a massive issue of U.S. government debt this week, rising oil and commodity prices and background trade and geopolitical tensions between the United States and a host of foreign countries. Some see the glass as half full, other see it as half empty on all three issues, a situation that translates to see-saw markets that objectively cannot seem to find their footing.  Silver is also up a bit at $16.71 (+5¢).  Even the dollar cannot seem to make up its mind – a very good day yesterday has given way to a not so good day today.

Chart of the Day

Chart note:  Oil hit a three-year high today – continuing its recent triek higher on Mideast concerns, specifically the confrontation between Saudi Arabia and Iran taking place in Yemen. In at least a generalized sense oil and gold have been traveling companions since 2000, though not in lock-step.  Gold, too, has held up better than oil in the down times – oil being the more volatile of the two. Oil prices are important in the context of inflation because so much of what is produced or manufactured in the United States has an oil component in the pricing equation.
Share
Posted in Today's top gold news and opinion |

LATE REPORT

Not much has changed since the EARLY REPORT was filed earlier today.  Please scroll down the page if you missed it. Have a good evening. . . . .

Share
Posted in dailyquotes |

LATE REPORT

Not much has changed since the EARLY REPORT was filed earlier today.  Please scroll down the page if you missed it. Have a good evening. . . . .

Share
Posted in Today's top gold news and opinion |

Gold pushes lower as Japanese yen weakens and the 10-year Treasury pushes 3%

EARLY REPORT

Gold is pushing lower this morning as the 10-year Treasury neared the 3% yield level, commodities dipped lower, and Japan announced policies likely to weaken the yen (and strengthen the dollar). Gold is trading at $1325 early-on and down $11 on the day. Silver is also lower, down 34¢ at $16.78. The U.S. dollar pushed higher against the Japanese yen in overnight trading on comments from central bank head, Haruhiko Kuroda, that Japan will continue a “strong accommodative monetary policy for some time.”

As for the bond market, all eyes will be on the Fed note and bill auctions this week as the Treasury Department looks to place a huge $96 billion in two-, five-, and seven-year notes. A weak response could push the 10-year yield over the 3% barrier and unleash animal spirits in financial markets. TD Securities’ Gennadiy Goldberg told Bloomberg: “There’s a lot of supply coming, which is probably the understatement of the century.” [Emphasis added] The size of this week’s auctions are a reminder that the rapid growth in the U.S. national debt remains a clear and present danger unlikely to go away anytime soon. The U.S. has added $1.275 trillion to the national debt over the past 12 months.

Chart of the Day

Chart note: This chart on the gold price in Japanese yen tells an interesting tale. Japan, we all know, has been caught up in a decades long disinflation, and some would say, a disinflation verging on deflation. Over the past two years though, the price of gold has been on the rise in Japan. In fact, it is up 14.5%. And so you know that this is not some out-of-the-box oddity, since 2005, gold is up 329% in Japanese yen – all during a period when the inflation rate bounced around the 0% level. We have commented on numerous occasions that gold is more than simply an inflation hedge. It is a hedge against disinflation, even deflation, as investors hedge systemic financial risks, currency risks as well as political and geopolitical risks. This chart offers further proof of the assertion.

Share
Posted in Today's top gold news and opinion |

Gold pushes lower as Japanese yen weakens and the 10-year Treasury pushes 3%

EARLY REPORT

Gold is pushing lower this morning as the 10-year Treasury neared the 3% yield level, commodities dipped lower, and Japan announced policies likely to weaken the yen (and strengthen the dollar). Gold is trading at $1325 early-on and down $11 on the day.  Silver is also lower, down 34¢ at $16.78. The U.S. dollar pushed higher against the Japanese yen in overnight trading on comments from central bank head, Haruhiko Kuroda, that Japan will continue a “strong accommodative monetary policy for some time.”

As for the bond market, all eyes will be on the Fed note and bill auctions this week as the Treasury Department looks to place a huge $96 billion in two-, five-, and seven-year notes.  A weak response could push the 10-year yield over the 3% barrier and unleash animal spirits in financial markets. TD Securities’ Gennadiy Goldberg told Bloomberg: “There’s a lot of supply coming, which is probably the understatement of the century.”  [Emphasis added] The size of this week’s auctions are a reminder that the rapid growth in the U.S. national debt remains a clear and present danger unlikely to go away anytime soon. The U.S. has added $1.275 trillion to the national debt over the past 12 months.

Chart of the Day

Chart note:  This chart on the gold price in Japanese yen tells an interesting tale.  Japan, we all know, has been caught up in a decades long disinflation, and some would say, a disinflation verging on deflation.  Over the past two years though, the price of gold has been on the rise in Japan.  In fact, it is up 14.5%.  And so you know that this is not some out-of-the-box oddity, since 2005, gold is up 329% in Japanese yen – all during a period when the inflation rate bounced around the 0% level.  We have commented on numerous occasions that gold is more than simply an inflation hedge.  It is a hedge against disinflation, even deflation, as investors hedge systemic financial risks, currency risks as well as political and geopolitical risks.  This chart offers further proof of the assertion.

Share
Posted in dailyquotes |

Are the top 16 risks to gold stocks in 2018 catalysts for gold?

Countingpips/First Macro Capital/4-22-2018

“What was most interesting, many of these risks are not seen as a concern to the management teams of Newmont Mining or Barrick Gold when going through their 10-Ks, versus the elevated risks the investment community sees in the macro landscape. Is the investment community concerned with many risks or is management thinking many of the risks won’t happen to them? These risks can heighten mining risk because of the elevated geopolitical and financial risks, potentially disrupting supply, and driving up gold prices even further without gold demand increasing.  Are these the catalysts that will push up higher gold prices?” [Emphasis added]

Share
Posted in Today's top gold news and opinion |

Leaping treasury yields will slash demand for stocks, predicts market veteran

CNBC/Stephanie Landsman/4-22-2018

“‘If you take a look long-term, where the 10-Year Treasury typically trades, it matches nominal [economic growth],’ [Cresset Wealth’s Jack] Ablin said. ‘And, the last nominal [growth] number we got in December of last year suggested that the 10-Year Treasury should be about 4.1 [percent] not 2.9,’ he added. Stocks historically become less attractive as yields move higher. In the easy money environment since the financial crisis, low yields created great demand for stocks.”

MK note:  Though Ablin’s analysis argues in favor of exiting stocks, I fail to understand how it argues favorably for acquiring bonds.  But then again, maybe I’m missing something. . . . . .

 

Share
Posted in Today's top gold news and opinion |