central banks

Central Banks Creating Global Stock Market Bubbles

By Friday, April 17, 2015

Central banksIrrationality 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 chart below of the Tokyo Nikkei Average—a key measure of Japanese stocks.
Tokyo Nikkei Average Index
‘Tokyo Nikkei Average Index, 1996-2015,’
Chart courtesy of StockCharts.com… Read More
The

Top 10 Countries with the Highest Gold Reserves

By Wednesday, April 1, 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 made by central banks over the last three years, it appears as… Read More

Global Economy: Its Weakness to Impact U.S. Economy and Stock Market

By Wednesday, March 25, 2015

Global economy slowdownWith 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 will have you believe central banks across the global economy are slashing their benchmark interest rates. They are right. So far, more… Read More

Mining Companies Setting Up to Provide Massive Returns?

By Thursday, February 26, 2015

Mining Companies Set Massive ReturnsThe 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 companies are setting up to provide investors with solid returns in the long-term.
As it stands, I see three reasons to at… Read More

Volatility in Global Currencies Good News for Gold Investors

By Thursday, January 29, 2015

Volatility in Global CurrenciesAs 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 due to its central bank’s interventions.
How long these trends will last is hard to tell, but from my experience, I know… Read More

About the 40% Collapse in the Use of the Dollar

By Monday, December 8, 2014

U.S. Dollar at Accelerated PaceSince 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 will raise interest rates in 2015 (while other countries are still lowering their rates).
To me, the dollar has gained against other… Read More

India Buying 450% More Gold?

By Monday, October 27, 2014

How Can Gold Prices Possibly Go DownThe 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 of 2013. (Source: Government of India, October 14, 2014.) The jump in gold bullion buying in India is related to the easing… Read More

The Nine-Month Check-Up

By Wednesday, October 1, 2014

Nine-Month Check-UpWith nine months behind us this year, today we look at how two popular forms of investment have done in 2014 and where I think they are headed for the remainder of the year.
Starting with stocks, the Dow Jones Industrial Average closed yesterday up 2.8% for the year. Given the risk of the stock market, 2.8% is no big gain. I wrote at the beginning of 2014 that the… Read More

Where the U.S. Dollar Is Headed and What It Means to You

By Monday, September 29, 2014

U.S. Dollar Is HeadedFor the U.S. federal government’s fiscal year, which ends this Tuesday, the Congressional Budget Office (CBO) predicts a budget deficit of $506 billion. (Source: Congressional Budget Office web site, September 26, 2014.)
But just because our annual deficit is declining, that doesn’t mean our national debt is rising by an equal amount.
In fact, between September 20, 2013 and September 20, 2014, the U.S. national debt increased by $1.0 trillion…. Read More

A Rational Look at Gold

By Wednesday, September 24, 2014

Rational Look at GoldThe fundamentals that drive gold prices higher are in full force and improving. Central banks are buying more of the precious metal (to add to their reserves), while countries that are known to be big consumers of gold bullion post increased demand.
According to the India Bullion & Jewellers’ Association, India’s monthly gold bullion imports are expected to rise by as much as 50% in the coming few months—in the… Read More

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