Our Blog


This Ratio Suggests Gold Is Entering a Major Bull Market
This Ratio Suggests Gold Is Entering a Major Bull Market

An often cited negative about gold is the inability for investors to value it, unlike traditional investments such as stocks and bonds.

A company’s revenues and earnings can be forecast to arrive at a valuation multiple. A bond’s cash flows can be discounted to come up with a present value. But since gold bullion does not produce either, investors often struggle with assigning a fair value.

Some will look at technical analysis, others fundamentals, interest rates, or expected inflation—but unfortunately there’s no correct answer, and attempting to time the market when choosing an entry point is extremely difficult.

Read More

Now Is the Time to Buy Gold
Now Is the Time to Buy Gold

The Fed finally raised its target interest rate and issued guidance for 2017. Trump shocked the political world and stocks seem to be making new highs daily. Investor sentiment is at two-year highs, fueled by optimism for renewed economic growth, de-regulation, and tax cuts.

Meanwhile, the mood is decidedly negative toward gold.

Mainstream media sites like Barron’s and The Financial Times are claiming the end of the recent bull run in gold and have a very bleak outlook.

Read More

Increased Fiscal Spending Could Spell Trouble for 2017
Increased Fiscal Spending Could Spell Trouble for 2017

Over the past 30 years, America’s economic growth and boom-bust market cycles have been fueled with abundant sources of cheap debt. Whether emerging markets or commodity-rich countries, there’s been no shortage of buyers of US debt.

This has allowed the US—and by extension its consumers—to borrow huge sums of capital to spend on fiscal items or for personal consumption. It was a rather symbiotic relationship from which both parties would benefit, even if longer term prosperity was being jeopardized.

Read More

What’s Behind the Recent Rally in Stocks?
What’s Behind the Recent Rally in Stocks?

With the bull market in US stocks approaching its seventh anniversay in March 2017 and the indexes just hitting all-time highs, many investors are wondering how long the party can continue.

Only time will tell how long this trend will last, but we do know that eventually, there’s always a downturn. Looking at several key metrics can bring clarity to the overall health and sustainability of the rally and reveal what investors can do now to prepare for a slumping stock market in the future.

Read More

Trump’s Agenda Stacks the Odds in Gold’s Favor
Trump’s Agenda Stacks the Odds in Gold’s Favor

"It's the economy, stupid."

This was the catch-phrase Bill Clinton’s campaign used in 1992 to help defeat George H.W. Bush. In this year’s presidential race, the slogan “Make America Great Again” branded the Trump campaign as a referendum against the economic policies of the current administration.

No matter the race—be it in local or national politics—the economy plays a crucial role in determining whether the incumbent party will retain office or relinquish it to another group.

On Election Day, America voted for change amid years of tepid economic growth and declining wage growth. 

Read More

Here’s a Smarter Way to Buy Precious Metals in Volatile Times
Here’s a Smarter Way to Buy Precious Metals in Volatile Times

Volatility in gold and silver has been on full display the past 24 hours. As the US presidential election approached this week, gold declined $30 to $1275/oz on the prospect of a Clinton victory.

However, as initial poll results came in and were favorable for Trump, gold reversed course and rocketed higher through overnight trading. Shortly after 12 AM EST when most polling had closed, gold was up a staggering $60, to $1335/oz. Stock markets around the world were plummeting with circuit breakers triggered on US equity futures markets.

As the dust settles and Trump’s victory is being digested, a sense of “normalcy” is returning to markets. Gold and silver have given back gains, and US stock markets have moved into positive territory… although bond yields remain elevated, perhaps indicating higher inflation and interest rates are on the horizon.

Two steps forward, one step back.

Read More

What’s Behind the Recent Surge in Volatility?
What’s Behind the Recent Surge in Volatility?

It’s no secret that people don’t like uncertainty. By nature, humans are generally creatures of habit—preferring stability and safe outcomes. This is especially true when it comes to financial matters.

However, financial markets are almost always facing some type of uncertainty, be it corporate earnings, interest rates, or geopolitical events. The issues are often benign and the outcomes are non-events, but as we know, there are always surprises causing markets to react.

The volatility index, commonly referred to as the VIX, is a measure of investor uncertainty and fear of the unknown. The VIX can go months at a time meandering along without much direction and impact on the markets. Other times, it will react on a relatively mundane piece of news, then gain momentum on each subsequent development.

Case in point: the past seven trading days.

Read More

Gold’s Recent Correction Is a Big Buying Opportunity
Gold’s Recent Correction Is a Big Buying Opportunity

Since the Federal Reserve raised its target interest rate last December, every dovish or hawkish comment from Janet Yellen and other voting members of the Fed has sent stock, bond, and commodity markets into flux.

Most notably, gold rallied 30% and silver 40% since the December 2015 rate hike, as likelihood of the Fed’s four planned interest rate increases dwindled.

The Fed has been on hold this year due to a myriad of reasons, including subpar economic growth, sluggish job and wage growth, low inflation, and the unexpected exit of the UK from the European Union.

But another year-end rate hike could be on the horizon, evidenced by the relatively strong jobs reports we’ve seen since July. In fact, the Federal Funds futures market is currently predicting a 70% chance of a rate hike in December.

As those odds have increased over the past month, gold and silver have experienced declines of 10% and 15%, respectively.

If you’re considering precious metals for your portfolio, it’s a good time to buy.

Read More

How Safe Is the Gold in Your Retirement Account?
How Safe Is the Gold in Your Retirement Account?

You know that gold can protect your retirement savings in ways traditional investments can’t. But are you buying the right type of gold for your IRA?

Not all gold investments are created equal—and if you sink your hard-earned savings into the wrong thing, you could wind up losing big.

The majority of investors adding gold to their IRA tend to purchase SPDR Gold Trust (GLD), the world’s largest gold ETF. And while GLD can make gaining exposure to gold a lot simpler, it has some significant drawbacks.

The biggest is insurance—or lack thereof. All gold ETFs carry counterparty risk.

Read More

Why Your Prime Money Market Funds Have Become Riskier
Why Your Prime Money Market Funds Have Become Riskier

Money market funds are regarded as the safest, most conservative investment. It’s where cash in most checking, savings, and brokerage accounts resides. The invested amounts are readily converted into cash when we need to settle transactions and make payments.

During Lehman’s collapse in 2008, however, investors holding positions in these funds faced a serious risk of loss. The decline in value of Lehman Brother’s debt securities pushed the Reserve Primary money market fund’s Net Asset Value (NAV) below $1 per share.

That was a watershed event in the financial industry. In response, the SEC passed a series of amendments in an effort to make money market funds more resistant to market stress.

Read More

Subscribe to our Blog...

...and be the first to read what we post the moment we post it!

Receive email notification whenever precious metals news, analysis and commentary is posted to our blog.


Your email address is safe with us. We will never rent or sell it to anyone. Period. Read our Terms of Use.

Free Downloads