Climbing #Gold and #Silver's Wall of Worry. Climbing Gold and Silver's Wall of Worry. Confidence is slippery, even when you are a metals investor sitting atop the best performing assets of 2016.
It doesn't help when 4 years of a miserable bear market remains fresh in our memories. Any weakness in prices and it can feel like markets are getting ready to plunge right back to $13 silver and $1,000 gold. That feeling is called the "Wall of Worry", and bulls are going to have to climb it by staying in the market even if their emotions are telling them to bail. Let's review the last 6 weeks because they are quite instructional. June 1st: Silver closed at $15.97 and gold at $1,213. There was plenty of reason to worry. The year had opened with turmoil in the stock markets. In mid-February Fed officials responded to the collapse in stock prices by reversing their rhetoric on interest rates. Metals got another boost and the S&P 500 took off like a rocket.
So much so that, by June, schizophrenic officials had reversed direction once again. Only investors were split. 5 Big Drivers of Higher #Inflation Rates Ahead. 5 Big Drivers of Higher Inflation Rates Ahead. By: Stefan Gleason, Money Metals Investors got lulled into a state of inflation complacency.
Persistently low official inflation rates in recent years depressed bond yields along with risk premiums on all financial assets. That’s changing in 2018. Five drivers of higher inflation rates are now starting to kick in.Inflation Driver #1: Rising CPI The Consumer Price Index (CPI) is a notoriously flawed measure of inflation. It tends to understate real-world price increases.
Nevertheless, CPI is the most widely followed measure of inflation. Since peaking in mid-2016, the bond market has been stair-stepping lower (meaning yields are moving higher). Trumponomics means greater economic stimulus….and larger budget deficits. If everyone who reads our story, who likes it, helps fund it, our future would be much more secure.
The True Nature of #Gold Is Liberty. The True Nature of Gold Is Liberty - GuruFocus.com. “Look at that screen,” exclaimed Fox Business Network's Stuart Varney, referring to the television graphic showing markets crashing across the globe. “The only thing going up is the price of gold!” “It's always a dangerous thing when you leave democracy up to the people,” joked Varney's guest – venture capitalist and author Peter Kiernan – as they watched Britain vote Thursday night to escape the European Union. The dust is still settling after Britain's seismic Brexit vote June 23. At issue: who should control British economic and immigration policies – Brits themselves or unelected bankers and their bureaucracy stooges? It was a choice between the liberty of self-determination and the tyranny of faraway cronyism.
While the gritty election fallout spread through rattled markets and wafted into plush offices of banking's money masters, the hard and fast implications were clear. 'Only lunatics would consider EU membership' The Brexit victory has now kindled a wildfire. Texas isn't alone.