Commodity Trade Mantra

Posts Tagged ‘World Economy’

Gold Price Must Rise, But Brexit Is Not The Reason Why it Should

The pain of negative yields & social chaos will be very long lasting & very good for gold. So, gold must go up, but Brexit is not one of the reasons why it should. In the short term there will likely be a correction in the gold price, creating an opportunity to trade. The market must take the price up for the right reasons, before one can be confident about the resilience of the advance.

Is There A Better Insurance Against Global Risk Than Gold? I Doubt It!

Negative rates kill the incentive to save & without savings, there will be no investments or growth in the economy. But the biggest disaster is hitting the pension sector. When risks are major, it is critical to protect yourself against them. It is not a coincidence that some of the most successful investors in the world are recommending physical gold as insurance against these risks.

Why We Need Oil Prices to Rise to $120 Per Barrel or More

When oil prices fall from $100 per barrel to $50, the incomes of a large share of people are adversely affected. This drop in income tends to radiate outward to the rest of the economy because each worker who is laid off is forced to purchase fewer discretionary items & is also less able to take on new debt, such as to buy a new car or house.

Worldwide Defaults are Imminent - Would You Prefer Bonds or Gold?

The US owes something like $200 TRILLION if one includes Social Security & other outflows going forward. Some 100 million individuals including young people & seniors are not working in mainstream jobs or not working at all. When the entire world’s financial infrastructure is threatening to implode due to unmanageable debt, what would you rather be holding – gold or bonds?

The End of the Bubble Finance Era

During the expansion phase of central bank enabled bubble finance, optimism reigns and bulls and speculators insist that “this time is different.” Yet the laws of sound finance and market economics never change. It often just takes an extended time for all the excesses to work their way through the system and finally reach the blow-off stage.

The Worldwide Credit Boom Is Over, Now Comes A Tidal Wave Of Global Deflation

The world’s central bank cartel has ensured that there will be thousands of such filings in the years ahead because since the mid-1990s, central banks have engulfed the global economy in an unsustainable credit boom, while utterly disabling & falsifying the financial system that is supposed to price assets honestly, allocate capital efficiently & keep risk & greed in check.

Goldman Sachs Warns “Too Much Debt” Threatens World Economy

Andrew Wilson, Goldman Sachs Asset Management’s chief executive in Europe said, “There is too much debt and this represents a risk to economies. Consequently, there is a clear need to generate growth to work that debt off but, as demographics change, new ways of thinking at a policy level are required to do this.”

Repeat After Me: The US Dollar Is Not Real Money

The dollar is not real money. It represents no real work, savings or wealth. Civil servants can create it at will. As much as they see fit. And what about the saver? He must think himself a fool. For all his self-discipline…his forbearance…his willingness to forgo immediate satisfaction in return for greater returns later…what does he get? NOTHING.

5 Things To Ponder: To QE Or Not To QE

Are the markets, and the economy, finally strong enough to stand on their own? Or, will the end of the current QE program be the start of a bigger correction? With central banks much more concerned about a return to recession than about asset-price bubbles, they have little choice but to step back in.

The BIS Paves the Way for Silver and Gold

The BIS warned earlier this summer that the world economy is in many respects more vulnerable to a financial crisis than it was in 2007. Debt ratios are now far higher, emerging markets also drawn into the fire over the last 5 years & gold and silver have been hammered. The world as whole has never been more leveraged.

Will There Be a New Gold Rush?

Even though the amount of dollars is going up, eventually debt will be wrung out of the system. This causes deflation, which is very bullish for gold. In deflation, both creditors and debtors are in dire straits. They’re facing enormous pressure. People tend to turn towards stores of value like gold.

Is The Emerging Market Growth Story Over?

There are a large emerging economies that are slowing which raises the question as to whether the emerging market growth story is over, with investors pulling at least some of their money out from these countries.

Does A Poor Economy Mean Low Gold Price?

Despite some positive data, Global Economy is showing signs of slowing, a remarkable development in itself when you consider all the money printing and deficit spending of past few years

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