Article Index
Central Banks

Last week we heard that the Bank of Japan became the fourth major central bank to embark on the path of the unknown world of negative interest rate policies. The goal of a negative interest rate policy is to boost lending by commercial banks, which in turn is…

Here’s One Reason Why Gold Prices Could Soar If you are wondering where gold prices are going next, then just look at what central banks are doing. Their actions suggest the yellow precious metal could soar big-time—a move like the one seen after 2008 and 2009 shouldn’t be…

While gold prices trade near a five-year low, central banks around the world are snapping up the precious metal. Between June and September of this year, the People’s Bank of China (China’s central bank) added 654 tonnes of gold bullion to its reserves. (Source: Reuters, November 30, 2015.)…

To examine the gold market, you must pay attention to the big buyers. Don’t listen to the noise that suggests the precious metal is “useless.” Gold prices may be down and out, but the major buyers remain resilient. Three Buyers Disregarding Gold Price Completely We continue to pay…

Fears of a banking crisis and U.S. dollar collapse have sent the gold demand soaring, leaving dealers and exchange officials struggling to catch up. With loose monetary policies set to continue for the foreseeable future, the Federal Reserve and central banks around the world have been slowly losing…

Foreign central banks have been withdrawing their gold from the Fed. According to the Federal Reserve’s most recent update, a whopping 224 tons of gold have been withdrawn from its vaults since the beginning of 2014. (Source: U.S. Federal Reserve, last accessed September 9, 2015.) Sure, gold hasn’t…

Just one day before the European Central Bank declared an expansion of their stimulus program, Marc Faber was on Bloomberg TV arguing that rogue central banking will cause an economic collapse. He argued that “easy money” policies are dangerously irresponsible, and investors should be wary of assets whose…

Late last year I wrote an article suggesting the U.S. could enter a depression in 2015. To some it sounded farfetched at the time. After all, the stock market was at record highs and investors remained bullish. But it seemed to me that all the economic evidence pointed…

When 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…

Gold 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.…

Less 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…

In my 30-year career in the markets, the biggest profit plays I have seen were centered around getting out of an investment when everyone wanted in (NASDAQ tech boom of 1999, stock market boom of 2007, and now) and getting into an investment when few wanted it (gold…

Over the long term, I am watching how central banks are reacting in order to assess the gold market. I believe they will be a major force driving the yellow metal prices higher. Central Banks with Gold Aren’t Selling You see, those who have the yellow metal stored…

Irrationality prevails in global stock markets and I believe it’s because of the actions of central banks. What’s happening with central banks and their involvement with equity markets not only is unprecedented, but it also will not end well. Japanese Stock Market Topping 20,000 Just look at the…

With 20 central banks indicating they may lower interest rates even further, a world economic slowdown underway, and bellwether copper prices collapsing, U.S. multinational companies (and their stock prices) will not escape the malaise facing the global economy. Central Banks Concerned Regarding Global Economic Slowdown? The mainstream media…

The amount of pessimism towards gold companies is severe. If you have been listening to the mainstream financial outlets, you may be convinced by now that they are the worst investment you can add to your portfolio. But I disagree with this notion. In fact, I believe mining…

As it stands, we are seeing wild swings in the currency markets. The only currency that’s performing well is the U.S. dollar. Other currencies, like the Canadian dollar, euro, Japanese yen, Australian dollar, and British pound, are in a definitive downtrend. The Swiss franc is seeing historical moves…

Since July of this year, the U.S. dollar is up about 10% against a basket of other industrialized world currencies. Some say the dollar is up because the Federal Reserve has stopped printing paper money (while other countries are still printing) and because the Fed has said it…

The demand and supply situation for gold bullion, something I’ve often talked about in these pages, has taken a new course…one very favorable to gold bulls like me. Gold buying in India is up 450% in the first nine months of 2014 compared to the first nine months…