Monthly Archives - March 2019

Gold plays an important role in portfolio diversification

Portfolio Diversification Is Necessary to Keep Your Assets Safe Into Retirement

Read any articles about the financial well-being of American households and it’s clear that they don’t paint a pretty picture. Nearly 80% of households live paycheck to paycheck, with limited ability to save money for retirement or even for an emergency. Even though the average household has just under $9,000 in the bank, over 60% of households would have difficulty paying for an unexpected $1,000 expense. And although the average amount of money held in a 401(k) retirement account [...]

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Central banks keep buying gold

Central Bank Gold Purchases Pushing Ever Higher

When it comes to assessing the actions of central banks, it’s important to pay more attention to what they’re doing rather than what they’re saying. When the Fed says that it’s going to stop running down its balance sheet, look at the H.4.1 release each week to see if that’s actually the case. And when central banks say that you can trust their currencies and that there’s no reason to invest in gold to protect against inflation, look at [...]

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Many corporate bonds will become junk

Corporate Bonds Are About to See a Wave of Downgrades

There’s a crisis lurking in markets that many investors remain completely unaware of. While attention is focused on stock market levels, job hiring, and oil prices, one major market remains, as it often has been, overlooked by the majority of investors. And weakness in that market could set off a series of forced sales that could have a domino effect on markets and precipitate another financial crisis. That market is the bond market. The bond market is one to which [...]

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Chinese Government Continues Its Gold-Buying Boom

After two years of keeping its gold reserves static, the Chinese government has begun ramping up its gold purchases in recent months. Its gold-buying binge has entered a third straight month, with another 10 tons of metal added in February to its official reserves. It’s worth noting, however, that it’s widely assumed that China under-reports its official reserves in order not to telegraph its actual position. The timing of this latest round of gold purchases couldn’t be more auspicious, coming [...]

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Will job growth continue?

Do the Latest Job Numbers Point the Way Towards Recession?

After a January jobs report that saw over 300,000 jobs added to the economy, most economists expected a milder February, with consensus estimates expecting about 180,000 new jobs. It came as a huge shock, then, that only 20,000 new jobs were added in February. That was one of the worst numbers in years, and feeds into fears that the economy is on the edge of recession. Officials were quick to blame bad weather for much of the disappointing miss, as [...]

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Save Like You’re Retiring Early, Even If You’re Not

The financial press seems to be full of stories of those who have retired early. It’s easy to get jealous when we hear stories of those who have retired in their 30s and who plan on never holding a full-time job again. In many cases when you dig deeper you find that these are people who held nice six-figure jobs, enjoyed generous employer-sponsored 401(k) packages, and who aren’t burdened by expenses that most other people face such as houses [...]

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Gold and silver coins

Gold or Silver? Why Not Both?

When women decide on the jewelry they wear for an evening out, they’re going to pick between gold or silver. But investors don’t have to choose one or the other, they can choose both. Each precious metal has its own advantages vis-a-vis the other, so here are a few of them that are most important to investors. Silver Is Cheaper For many investors who may just be starting out, the fact that silver is cheaper is a big draw. The $1,300 [...]

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Fed Chairman Jay Powell

Fed Chairman’s Testimony Confirms That More Monetary Easing Is On the Way

For those who continue to hope for a return to economic normalcy, Fed Chairman Jerome Powell’s testimony last week was bitterly disappointing. Anyone hoping for an end to accommodative monetary policy and a return to market-determined prices for assets has much longer to wait. The Fed has barely run off a little more than ten percent of its over-bloated balance sheet and it is already talking about throwing in the towel. The balance sheet is still hovering at around $4 [...]

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Warren Buffett is wrong on gold

Warren Buffett Continues to Be Wrong on Gold

Most investors know that Warren Buffett isn’t a fan of gold. He has long derided the yellow metal as a bunch of rocks that sit in a vault and don’t do anything. Of course, when stocks are plummeting and losing half of their value there’s nothing investors want more than something that does nothing but sit in a vault and retain it’s value, but we’ll get to that later. Buffett loves to compare gold to stocks, particularly over a very [...]

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Money for nothing

Something for Nothing? Not Really

One of the common complaints we hear about American society today is that nobody wants to work hard for anything. Everyone wants to be able to get a six-figure job without having to have any talent or ability, and wants to be able to make lots of money without having to put in any work. People play the lottery to try to get rich quick, spending thousands of dollars in the hope of making it onto easy street. Young [...]

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