Gold and Silver Demand Has Quadrupled Over the Past Decade
The law of supply and demand is a cornerstone of economics that helps explain today’s rise in silver demand. If the supply of a good decreases, prices for that good will rise. If the supply increases, prices will fall. Conversely, if demand for a good decreases then prices will fall. If demand increases, prices will rise. When looking at gold, silver, and other precious metals, analysts often...
Stock IPOs May Dazzle Now, But Gold Will Never Lose Its Shine
Stock markets have been agog with expectations about big initial public offerings (IPOs). Ride-sharing service Lyft recently offered its first public offerings of stock last Friday, offering shares at $72 apiece. The first trades on Nasdaq began at $87.25, but Lyft quickly crashed downwards, falling below $70 on Monday. That’s a worrying sign for other tech companies planning their...
Pressure on Fed to Ease Is Good News for Gold Price
White House economics adviser Larry Kudlow caused some raised eyebrows last Friday with his call for the Fed to immediately cut its target federal funds rate by 50 basis points. According to Kudlow, the Fed never should have raised interest rates above 2%. Despite protestations that the economy is fundamentally healthy, the call for an immediate interest rate belies...
Disappointing Housing Market Continues to Point the Way Towards Recession
Every month seems to bring conflicting data from the housing market, with occasional bits of rosy data eventually overwhelmed by negative data. It’s no secret that houses across the country are incredibly expensive. It’s not even just the large metro areas such as San Francisco, New York, and Washington, DC that are affected either. Even interior states such as...
A Perfect Storm Is Taking Shape in Financial Markets: Are Your Assets Safe?
The past week has brought something that investors everywhere had been fearing: an inversion of the yield curve. While the spread between 10-year Treasury bonds and 3-month Treasury bonds had been growing smaller and smaller every month, the yield on the 10-year remained higher. But last week the Fed’s decision to end its balance sheet tightening provided the impetus...