While physical silver investment demand experienced a pronounced decline this year, the volume is still much larger than the level prior to the 2008 U.S. Housing and Banking Crash. Investors frustrated by a silver market plagued with lousy sentiment and weak demand, may not realize that silver bar and coin demand is projected to be double what it was in 2007. Thus, long-term precious metals investors continue to acquire silver on price dips while others may be selling out and placing their bets into the bubble stock market or cryptocurrencies. It’s not the larger precious metals investor who is worried about the short-term price, rather its...
The gold miners’ stocks have spent months adrift, cast off in the long shadow of the Trumphoria stock-market rally. This vexing consolidation has left a wasteland of popular bearishness. But once a quarter earnings season arrives, bright fundamental sunlight dispelling the obscuring sentiment fogs. The major gold miners’ just-reported Q3’17 results prove this sector remains strong fundamentally, and super-undervalued. Four times a year publicly-traded companies release treasure troves of valuable information in the form of quarterly reports. Companies trading in the States are required to file 10-Qs with the US Securities and Exchange C...
Mid-cap growth funds focus on realizing an appreciable amount of capital growth by investing in stocks of firms, the value of which is projected to rise over the long term. However, a relatively higher tolerance to risk and the willingness to park funds for the longer term are necessary when investing in these securities. This is because these may experience relatively more fluctuations than other fund classes. Investors interested in high returns can choose to invest in mid-cap funds that come with lesser risk than small-cap funds. Mid-cap funds are not susceptible to volatility in the broader markets. This makes these funds ideal bets given...
Square, a payment company, is playing around with Bitcoin. In an article on CNBC, we read: Jack Dorsey’s company is testing support for bitcoin through its Cash payments app. “We’re exploring how Square can make this experience faster and easier, and have rolled out this feature to a small number of Cash app customers,” a Square spokesperson said via email to CNBC. “We believe cryptocurrency can greatly impact the ability of individuals to participate in the global financial system and we’re excited to learn more here.” The test does not allow individuals or businesses to send or accept bitcoin, Squa...
Gold continues to shine in the post-Saudi-coup world… And the precious metal just broke above its 50-day moving average, after bouncing off its 200-day on Tuesday. This is gold’s best day in 3 months… Gold is gaining as the dollar index slumps to near 1-month lows… Of course, it’s USD/JPY that really matters (and it just broke below 112.00)...
Of the three regional manufacturing surveys released for November, all were in expansion. Analyst Opinion of Kansas City Fed Manufacturing Kansas City Fed manufacturing has been one of the more stable districts and their index declined. Key internals were in expansion but likewise declined. There market expectations from Bloomberg / Econoday were 20 to 24 (consensus 23. The reported value was 16. Any value below zero is contraction. z kansas_man.PNG – The Federal Reserve Bank of Kansas City released the November Manufacturing Survey today. According to Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas Ci...
Insanity, like criminality, usually starts small and expands with time. In the Fed’s case, the process began in the 1990s with a series of (in retrospect) relatively minor problems running from Mexico’s currency crisis thorough Russia’s bond default, the Asian Contagion financial crisis, the Long Term Capital Management collapse and finally the Y2K computer bug. With the exception of Y2K – which turned out to be a total non-event – these mini-crises were threats primarily to the big banks that had unwisely lent money to entities that then flushed it away. But instead of recognizing that this kind of non-fatal failure is crucial to t...
By now, the surge in housing prices in Canada, and in particular, Toronto and Vancouver, have received a wide spread attention. International observers label the market as a bubble that has to burst. Observers point out that average house prices in these two cities have more than doubled in the past decade, a rate that is considered unsustainable. The concept of a “bubble” relates to a buying frenzy that is totally demand driven and virtually unrelated to supply considerations. But that interpretation must be corrected if one is to really get a handle on the true state of the housing market in these two major cities. A recent assessment b...
The latest update of the Treasury Department’s Treasury International Capital (TIC) estimates clarified a few things. To begin with, for the month of September the Chinese sold UST’s again for the first time in seven months. Between the end of January and the end of August, the Chinese had added $149.4 billion in UST holdings. In September, however, the balance was reduced by $19.7 billion. The change back to selling them wasn’t a surprise. CNY stopped rising early on in September, clearly reversing as did the Hong Kong dollar at the same time. We can add Belgium’s holdings to China’s and the net was still a negative coincident to t...