Monthly Archives - June 2019

How to tell when bubbles develop in an economy

How to Tell That the Economy Is In a Bubble (When No One Else Can)

The policymakers at the Federal Reserve, and at most central banks for that matter, have a horrible track record when it comes to figuring out when an economy is in a bubble. By the time they realize that the bubble has even existed, it has already burst. They end up playing catch-up, reacting to a financial crisis months after it has already gotten underway. Their policy response isn’t any better either, as every recession is responded to with an ever-larger [...]

How safe is your money

Think Your Safe Deposit Box Is Really Safe?

Many people think that money or assets they store in a bank safe deposit box is guaranteed to be safe. With the security of a bank vault and the requirement of two keys to get into the box, what could go wrong? But while a safe deposit box may deter ordinary thieves, it isn’t immune to the reach of the government. And if recent developments in Europe end up making their way over to our shores, the assets in [...]


Precious Metals Investing: Is It Better to Invest in Gold or Silver?

Due to recent volatility in stock and bond markets, many investors have turned their attention to precious metals as a hedge against that volatility. With memories of the 2008 financial crisis and its aftermath still fresh in many investors’ minds, their thoughts naturally turn to gold and silver, two assets that protected investors’ assets during the crisis. While stock markets lost over 50% of their value during the crisis, gold increased in value by over 25% and continued to [...]


Will the Fed Cut Interest Rates Next Month?

All of Wall Street is anticipating a cut to the federal funds rate at next month’s Federal Open Market Committee (FOMC) meeting. The meeting, the last before Washington empties out in August, will set the stage for summer and early fall trading, with the following meeting not scheduled until September 17-18. While the Fed didn’t cut rates at its June meeting, minor changes to the FOMC’s policy statement convinced those who already see an imminent rate cut that July [...]


The EU’s Internal Strife Sets the Stage for Gold

As much as authorities in Brussels would like to pretend that the EU is as united as ever, major fissures have erupted over the past several years as EU authorities continue their quest to unify the continent. While previous discontent was largely confined to smaller and more peripheral members, the latest feuds are starting to involve disputes between and among core members of the European project. Italy has become a flash point for conflict, both as a result of its [...]


Is a Hybrid Plan for Social Security a Good Idea?

Anyone who has been paying attention to Social Security’s fiscal problems knows that the system is woefully underfunded. Years of surpluses and interest income have lulled everyone into a false sense of security. But now total Social Security tax receipts plus interest income on the trust fund are not enough to pay the total amount of Social Security payments due to retirees. The current estimate is that Social Security’s trust fund will be exhausted by 2035. At that point total [...]


Finding the Right Fit: 401(k) vs. Gold IRA

Every American worker dreams at some point of retirement. The thought of living according to your own schedule, doing what you want to do, and not having to answer to anyone else is incredibly tempting. But too many workers put off thinking about retirement until it’s far too late. Thinking about retirement isn’t something that happens when you’re in your 40s or 50s and your children are growing up and going off to school. It isn’t something you start thinking [...]


Chinese Government Accelerating Its Rate of Gold Purchases

By now most people are aware that one of the major factors behind increasing gold demand around the world is increased demand from governments and central banks. Rather than being net sellers of gold like they were 10-20 years ago, central banks have become net buyers of gold, with demand from central banks increasing to near-record levels over the past couple of years. That trend is showing no signs of decreasing this year, as central banks continue to add [...]


Is Gold a Good Investment for You? 6 Indicators to Help You Choose

The only way to guarantee a sound financial future for yourself and your loved ones is to save and invest. Only through disciplined saving and smart investment choices can you put your money to work for you to build your wealth and ensure financial security. But with thousands of possible investment choices out there, how can anyone determine what to invest in? One of the keys to sound investment is a properly diversified portfolio. The exact makeup of that portfolio [...]