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Why Is Gold Important? A Brief Guide

For over 200 years, gold has been the most important precious metal in the world. It was once the linchpin of the international monetary system, and in a way still anchors the workings of the world’s central banks. Even though it no longer features as prominently as a currency, it nonetheless retains its importance. Gold has a number of attributes that make it both an ideal monetary metal and an ideal investment asset. It is durable, portable, divisible, uniform, in [...]

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The Federal Reserve’s Monetization of Debt Is a Bad Omen for the Future

One of the characteristic traits of an economy that is circling the drain is one in which the central bank directly monetizes the debt issued by the government. Once that starts to happen, there is no check on the government’s ability to spend money, and the currency unit quickly becomes more and more worthless. We’ve seen this happen in countries around the world throughout history, from Weimar Germany to Yugoslavia to Zimbabwe to Venezuela. That’s why most countries now have [...]

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5 New Year’s Resolutions for Investors

The coming of the new year has traditionally been a time for people to make resolutions about how they’ll improve their way of living in the year ahead. It’s become famous in some circles to joke about those resolutions, and how few people stick to them. That’s particularly true when it comes to exercise and fitness. But while many people may vow to exercise more, eat less, and get healthier, fewer people make resolutions to improve their financial health. That’s [...]

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What Would Trillions of Dollars of Corporate Downgrades Mean for Your Investment Portfolio?

One of the dominant themes in markets today is the vast amount of near-junk grade debt that’s floating around out there. Corporate debt levels are nearly double what they were during the financial crisis, and in terms of corporate debt to GDP, we’re at levels that we last saw at the top of the last two market crashes. That doesn’t bode well for the future health and strength of markets. It doesn’t help matters that much of that debt is [...]

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Negative Rates: Coming Soon to a Bank Near You?

At the beginning of the year, the Federal Reserve was expected to hike interest rates at least twice. Instead, it cut rates three times. What should we expect in 2020? With numerous analysts and strategists warning about the likelihood of a major stock market crash in 2020, it’s all but guaranteed that the Fed will have to drop rates even further than they already are. But in 2008 the Fed was stymied by the zero lower bound, unwilling to drop [...]

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Trying to Make Money in Stock Markets Is Tough For Mom & Pop

Many people look at surging stock markets, and especially hot stocks like Amazon and Netflix, and think that they can make it big investing in stocks. Yet very few investors are actually able to make market-beating stock gains, let alone even match the market. The sooner they understand that, the sooner they’ll be able to make investment decisions that can benefit their bottom line. The annual return for the average investor is less than the average return on the S&P [...]

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New Changes Mean More Incentive for Annuities, But Is That a Good Thing for Investors?

With the recent changes Congress made to retirement savings laws, more firms today will be able to market annuities to those enrolled in workplace retirement programs. Insurance companies lobbied hard for those provisions, hoping to capture a piece of the trillions of dollars Americans have invested through workplace 401(k) and retirement savings plans. But while annuities are often touted as a great source of retirement income, are they actually beneficial to most investors? What Are Annuities? Annuities are contracts between individuals [...]

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The Fed Blows the Bubble Bigger and Bigger, While More and More on Wall Street Warn of the Crash

As 2019 winds to a close, stock markets continue to see record highs. It’s a lot different than this time last year, when markets were plummeting to end the year. So what has changed? Well, the Federal Reserve decided to plow another few hundred billion dollars into financial markets to end the year, with that money finding its way to stock markets. With a President who wants monetary easing and judges the economy’s health by stock market numbers, the Fed [...]

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Gold and platinum ingots organized together

Gold vs. Platinum: Which Is the Right Investment for You?

While many investors know about investing in gold and silver, most probably don’t know that there are other precious metals in which they can invest. One of the most common precious metals aside from gold and silver is platinum, which has a long history of use in jewelry. Many investors may think that platinum is more expensive than gold, which it was for many years. But changes in the industrial demand for platinum have meant that the platinum price has [...]

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What Effect Will President Trump’s Impeachment Have on Gold?

With the House of Representatives having impeached President Trump last Wednesday, the natural question is: what effect will that have on markets? Judging by the way stock markets reacted in early trading on Thursday, not much. The Dow Jones shot up over a hundred points in early trading to start the day, shrugging off the widely anticipated impeachment. Will gold react any differently? Again, the answer is likely no. Gold rose also in early trading on Thursday, which is understandable. [...]

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