Central Banks

Central banks are institutions that manage a nation’s currency, money supply, and interest rates. Central banks also oversee a nation’s banking system and are the lenders of last resort in a time of crisis. Central banks are normally a separate body from the political establishment. The goal of central banks is to create stability and low inflation in the system.


Gold Bullion: These Three Players Bought 50% of 2Q15 Production

By Wednesday, August 26, 2015
GoldWhen there’s too much uncertainty about an asset class, like there is today with gold bullion prices, I go back to the basic economics of supply and demand. For prices to rise for any asset, you want to see demand increasing and supply remaining the same or even declining. Gold Bullion Demand Soaring On the demand side, when it comes to .

Invest in Gold: Central Banks Making Compelling Argument to Own Yellow Metal

By Thursday, August 20, 2015
Invest in GoldReasons to invest in gold are increasing each day. Don’t pay too much attention to the mainstream; it is pessimistic towards the yellow metal for all the wrong reasons. You see, between 2008 and 2012, there was just one major phenomenon driving gold prices higher; money printing by the Federal Reserve. It was running its printing presses.

Top 10 Countries with the Highest Gold Reserves

By Monday, August 10, 2015
Highest Gold Reserves Top Countries with the Largest Gold Reserves Is Gold Bullion at a Crossroads? Gold has had a remarkable run since it started its nascent rise in early 2001, climbing more than 650% between April 2001 and September 2011. Since then, gold prices have either taken a breather or are preparing for another upswing. Based on the gold purchases.

Gold Price Plunge: Why It Means Break Open the Champagne!

By Wednesday, August 5, 2015
Gold Price PlungeGold prices are down and the pessimism towards the precious metal is increasing daily; this is great news! If you bought gold bullion when it was beginning its bull-run—and kept it—you are doing much better than people owning stocks during the same period. Look at the chart below. It plots gold’s price (grey area), gold’s price.

Economic Collapse: This Could Lead to a Stock Market Crash in 2016

By Tuesday, August 4, 2015
Stock Market Crash in 2016Less than a decade after the biggest financial crisis since the Great Depression, over-zealous central bankers are risking a second economic collapse. The continuous credit creation and rock-bottom interest rates in the U.S., China, the EU, and Russia are meant to incentivize lending, but really they are engineering a second, much.
Sep. 1, 2015
Trailing 12-month EPS for Dow Jones companies (Most Recent Quarter) $1014.15
Trailing 12-month Price/earnings multiple (Most Recent Quarter)

17.44

Dow Jones Industrial Average Dividend Yield 2.71%
10-year U.S. Treasury Yield 2.14%

Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the physical metal.

Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, America’s gross domestic product grew by only a meager 2.3% in the second quarter, which will negatively impact an already overpriced equity market.

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From: Michael Lombardi, MBA
Subject: Gold: The Stock Contrarian Investors’ Best Play of the Decade

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