Author Archives: Everett Millman

FOMC-Fed-examination-magnifying-glass

Whose Corner Is the Fed Really In?

August 28th, 2017 by

As a wave of support for reform across the federal government gains steam, there is one “federal” institution that tends to resist any calls for transparency or reform: The Federal Reserve.

The nation’s central bank is sometimes characterized as the fourth branch of government due to the importance of monetary policy on the U.S. and global economies. Unlike many who serve in the other branches of government, members of the Fed are unelected.

Federal Reserve photo: Public Domain

40 Years Of Federal Reserve Leadership:
(L-R) Janet Yellen, Alan Greenspan, Ben Bernanke, and Paul Volcker

Given that many Americans are unaware or don’t understand the ramifications of Fed policy, this begs the question: Whose interests does the Federal Reserve really serve?

(Hint: Unless you’re a bank, it’s not yours!)

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gold-bull-and-bear-market

Gold Price Tests $1,300/oz

August 28th, 2017 by

gold-bull-and-bear-market

The precious metals appear to have carried over their positive momentum from last week, opening solidly higher in early trading on Monday. Spot gold was up about $7.50 to trade at $1,298 per ounce. The $1,300/oz milestone has been a key stumbling block for the yellow metal, so if gold prices can break above this level and hold, it would be a very strong indicator for the fourth quarter.

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©: abluecup / 123RF Stock Photo

Gold Price Jumps in Early Trading

August 25th, 2017 by

Spot gold surged higher right around the time markets opened on Friday morning thanks to awful durable goods data released by the Department of Commerce.

©: abluecup / 123RF Stock Photo

©: abluecup / 123RF Stock Photo

The yellow metal traded about 0.5% higher at $1,292/oz yet still faces hard resistance near the key $1,300/oz level. Meanwhile, spot silver gained almost 1% on Friday, adding 16¢ to $17.11/oz. Platinum prices were up slightly but palladium remained flat at about $925/oz.

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watching-yellen

Spot Gold Steady Ahead of Jackson Hole

August 24th, 2017 by

watching-yellen

Markets were quiet as Thursday morning saw the beginning of the annual meeting of central bankers in Jackson Hole, Wyoming. As investors wait to see what the world’s experts on monetary policy say about the state of the economy, trading volumes have been low. Spot gold was off by just $2 per ounce to $1,288/oz, but spot silver fell farther, losing 9¢ to trade at $16.99/oz. Platinum and palladium were each just a tick above unchanged.

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american gold eagles

Spot Gold Trades Near $1,290/oz

August 23rd, 2017 by

american gold eagles

Wednesday morning saw the gold price once more hit $1,290/oz, advancing again thanks to a softer U.S. dollar. The same principle applied to the other precious metals, as silver prices added 6¢ to trade back where the argent metal started on Tuesday morning around $17.05/oz. Platinum and palladium were up slightly, trading at $980/oz and $925/oz, respectively.

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29783980 - money coins in bag isolated on white

Gold Bullion: Safe Haven of Choice

August 22nd, 2017 by

financial-crisis-544944_1280

During the Cold War, when the world was lurching ever-closer to the doorstep of a nuclear holocaust, disaster preparedness was an abiding virtue of every American family.

Once the stand-off with the Soviet Union gave way to the 21st century, this high alert about potential war or crises later came to be applied to retirement portfolios and wealth management. After the global financial crisis of 2007-2008, people began to make preparations for an economic apocalypse rather than the real deal.

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dominant_dollar

Gold Slips on Stronger Dollar

August 22nd, 2017 by

Thanks to a stronger dollar, gold prices trended lower during early trading on Tuesday, losing about $5 per ounce to $1,286/oz. This is likely a necessary breather for the markets, as the dollar has been stuck in a downtrend for the past three weeks. This has naturally coincided with higher precious metal prices. Spot silver actually gained 5¢ on Tuesday to remain above $17 an ounce.

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palladium

Palladium Best-Performing Commodity in 2017

August 20th, 2017 by

A large proportion of investors, even those who buy precious metals like gold and silver, have never even heard of the oft-forgotten fourth precious metal, palladium.

Even its sister metal, platinum, is much more widely recognized. It was once fairly popular for high-end jewelry and, until recently, was historically more expensive than gold.

However, now that palladium prices have been on a tear, more people are beginning to take notice!

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World’s Biggest Hedge Fund Buying Gold

August 19th, 2017 by

One of the great things about owning gold is that anyone can do it from virtually anywhere in the world. It certainly has a democratizing impact on protecting one’s wealth.

However, in many instances, big movements in the gold market are attributed to the large-scale buying or selling by hedge funds. Sometimes referred to in the context of major firms and banks called “institutional investors,” hedge funds have the ability to move the market more than the average individual because they typically open very large positions when they trade or invest.

Now, the founder and manager of the world’s largest hedge fund is recommending that investors stock up on gold bullion.

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pile-of-gold-rally

Gold Price Higher After Terror in Spain

August 18th, 2017 by

After posting modest gains on Thursday amid a market sell-off in stocks, the precious metals were sharply higher on Friday. Some of the safe-haven flight is due to a terrorist attack in Barcelona yesterday that left at least a dozen dead and many more injured. A second plot was apparently foiled before inflicting further damage.

pile-of-gold-rally

Spot gold approached $1,300 per ounce on Friday, adding 0.7% to trade at $1,297/oz in the first half-hour markets were open in New York. This is also a significant technical breakthrough for gold, which has twice met hard resistance at the $1,296/oz level, its previous high this year. Silver prices jumped 1.3% higher to $17.22/oz. Platinum gained the same 1.3% while palladium added about 1%.

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ecb-dove

Dovish Central Banks Lift Gold

August 17th, 2017 by

Following yesterday’s meeting minutes released from the July gathering of the FOMC, the European Central Bank (ECB) also struck a more dovish tone in its outlook for interest rates and monetary policy. This more dovish stance signals to investors that major central banks are considering leaving accommodation in place for longer, which is not an optimistic view of economic conditions.

This helped lift spot gold slightly (+0.2%) on Thursday morning to back above $1,285/oz. The yellow metal was actually above $1,290/oz when markets opened before  Spot silver lost 3¢ (-0.15%) to settle near $17.08/oz. Platinum slipped 0.2% as well, but palladium gained over 1.5% to hit $920/oz. Incredibly, palladium has been by far the best-performing commodity in 2017, with palladium futures gaining over 35% year-to-date.

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Blockchains and Cryptocurrencies: The Next Financial Hack?

August 16th, 2017 by

It is commonplace today to refer to clever, beneficial innovations as hacks. So a life hack is a positive habit or practice; or a high-powered health regiment might be called a bio-hack.

When it comes to financial hacks—no, not the shady fund managers or brokers—the “next big thing” seems to be cryptocurrencies and the blockchain technology that these digital coins rely upon.

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rcm-gold-bar2

Error Mule of RCM’s New Gold Kilo Coins

August 12th, 2017 by

It’s intriguing for coin collectors to discover how error coins come to be. Government mints are pretty orderly operations, and have not just a number of anti-counterfeiting measures in place but also an array quality control features to keep such “defective” coins from making it out of the mint.

The Royal Canadian Mint

Another such error coin has apparently been produced by the Royal Canadian Mint, containing 1 kg of pure gold!

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crowded-dollar-trade

Spot Gold and Dollar Slip On Friday

August 11th, 2017 by

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Both the precious metals and the U.S. dollar were down in early trading on Friday morning. The latter continued to be dragged down by a stronger euro and Japanese yen, while the former were shedding some of the impressive safe-haven demand that accumulated this week.

Spot gold was down more than $4 per ounce when markets opened in New York before returning to essentially unchanged at $1,285/oz. Silver initially fell almost 20¢ (-1%), as usual playing its role as the more volatile of the precious metals. (Consider that silver prices rallied 80¢ over the past three trading days alone!) The argent metal recovered later in the morning and traded 0.6% lower to $17.00/oz. Platinum gained $8 while palladium was flat, widening the spread between the two metals to exactly $100 per ounce.

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balance of gold and dollar

CME Group CEO: $6,000 Gold Price?

August 10th, 2017 by

gold_price

Exaggerated and seemingly outlandish predictions and forecasts about asset prices abound all over the internet, and even the mainstream of money managers and the financial news. Gold is no exception to this reality that affects all sorts of financial endeavors, from investing to trading to estate planning.

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pile-of-gold-rally

Gold Surges On Producer Prices, North Korea

August 10th, 2017 by

pile-of-gold-rally

In addition to the rising tensions between the United States and North Korea, markets were also responding—negatively—to some disappointing economic data points from the U.S. Labor Department on Thursday morning. This drove gold prices significantly higher in early trading. The yellow metal jumped above the $1,280 mark to $1,286.30/oz.

Spot silver also surged 27¢ to $17.19/oz, blowing past a new two-month high. Platinum gained 0.8% to trade at $980/oz while palladium crossed above $890/oz, up more than 1.1%.

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