IS ECONOMIC GEAR STUCK IN REVERSE? It is one thing to complain that the economy is not growing, or, that economic activity is slowing; but the charts below indicate something more serious. Economic activity is in decline and the decline might be accelerating. First, lets look at industrial production... Industrial Production Real output for all facilities located in the[...]
Author: neptuneglobal
Too Soon For New Highs In Gold
NEW HIGHS IN GOLD Anticipation for explosive new highs in gold has risen sharply since last fall. After rising above $2000 earlier this year for the fourth year in a row, the gold price has dropped back to the mid-$1900s and continues to tease investors with somewhat lackluster performance. Regardless, we need to be clear about the expectations for the price of the yellow metal. The [...]
Stock and Bond Expert Makes Case For PMC Ounce and Gold – National Debt A Key Price Driver
Macroeconomic and geopolitical conditions have investors bewildered. Events which are unfolding look like they may crush the valuations of several asset classes which had enriched investors over the past decade. To help give us some direction at such a time, Neptune-GBX is pleased to share the insights from a market veteran and visionary who forecast the financial crisis of 2008[...]
Fears Of Recession Support Gold Price??
It is time to set the record straight - again... A recession, no matter how severe, will not have any appreciable effect on the gold price. A recession is a period of weak economic activity. Recessions can be accompanied by a weaker dollar; however, that is not usually the case. In fact, severe recessions and economic depressions can trigger deflation. In those cases, it means a[...]
Gold Price To Monetary Base – A Ratio to Keep An Eye On
GOLD PRICE AND MONETARY BASE "The monetary base is the total amount of a currency in circulation or held in reserves. Money in circulation is anything that is held and used by the general public while reserves refer to commercial bank deposits and any money held in reserves by these institutions at the central bank." Investopedia The chart below shows the ratio of the gold price to the St. [...]
Gold vs Stocks and Interest Rates – No Correlation
by Kelsey Williams for Neptune Global When others speak of gold as hedge or safe haven investment, they are usually referring to what is sometimes claimed as an inverse correlation between gold and stocks; i.e., gold tends to go up when stocks decline and vice versa. Based on casual logic, it sounds reasonable. The problem is that the logic is based on false assumptions. First of all,[...]
The Federal Reserve and $10,000 Gold
by Kelsey Williams for Neptune Global THE FEDERAL RESERVE - WHAT WE DON'T KNOW Having had the opportunity and time to ply their trade again and again, the sorcerers at the central bank have usually found favor with the gods of paper money. This is true as long as the basic objective and standard of measurement is to avoid complete financial and economic disaster. There are other[...]
Will The U.S. Dollar Collapse?
by Kelsey Williams for Neptune Global DOLLAR COLLAPSE? It seems as if the U.S. dollar is under constant attack. Calls for its imminent collapse are heard daily. Fears of worsening inflation, expectations for hyperinflation, a weaker dollar, and political machinations of the BRIC countries populate the headlines. Some investors are even more vocal and sound at times like[...]
The Nobility of Central Bank Action
by Kelsey Williams for Neptune Global The Federal Reserve has made it clear that its intention to get interest rates up to a higher level is a work in progress; and that investors and consumers shouldn't assume otherwise. Speaking before the House and Senate Banking Committee, Chair Powell said that still higher rates were needed to fight inflation and to expect more increases this[...]
It Was Never About Gold – Always About the Dollar
By Kelsey Williams for Neptune Global There is only one thing anyone needs to know regarding the price of gold. That one thing is best stated in the form of a simple question: "How much purchasing power has the U.S. dollar lost?" The answer to the above question tells you whether gold is realistically priced or not. For example, with gold near $2000 oz., its price is a[...]