munKNEE.com Your Key to Making Money

Dividends may be boring if you’re looking for casino-like thrills, but slow and steady is the path to long-term wealth. The comments above and below are excerpts from an article by Tony Sagami (MauldinEconomics.com) which has been edited ([ ]) and abridged (…) to provide a faster and easier read. I love dividends, and I’m far from alone. Do you know the only thing …

The low of $1,310.70 in gold last week appears to have marked the cycle bottom. With the Fed meeting behind us, gold prices are primed to rise through August - and likely into September - where they will form the next intermediate cycle top.

The Toronto-Dominion Bank, which oversees more than $230 billion in assets, has “shifted to a ‘maximum overweight’ in gold for its portfolios due to its overall feeling of uncertainty brought about by a sluggish global economy, the Brexit vote, central banking policies, and the upcoming US presidential election.

According to the New York Federal Reserve, 14% of the U.S. population lives in households that have “negative” wealth. In other words, these are households that have more debts piled up than assets, which puts their net worth in minus territory. In today’s chart, we compare the data on negative wealth households with the data on their positive counterparts. There are some obvious and stark contrasts.

There are four stages of fiat money printing that have been used by central banks throughout their horrific history of usurping the market-based value of money and borrowing costs. It is a destructive path that began with going off the gold standard and historically ends in hyperinflation and economic chaos.

Italy has overtaken Spain to become the weakest link among the Eurozone’s largest economies, with a banking sector desperately in need of a bailout and, if Italy’s banking crisis is a rerun of Spain’s, we can certainly expect some troubles in the Eurozone and, consequently, for the Euro.

Stocks don't have to immediately melt down today or next week, but it does mean that there’s a lot of risk percolating just below the surface – and El-Erian is worried that when it does bubble up, it could be more like a volcano than a hot spring.

What follows is a modern day parable which, if it wasn't so true, would actually be funny. A Japanese company (Toyota) and an American company (General Motors) decided to have a canoe race on the Missouri River. Both teams practiced long and hard to reach their peak performance before the race. Below are the results.

The Economist Intelligence Unit has produced its first global forecast since the Brexit vote. Please find below their forecasts for commodities until 2020.

As we documented in our extensive Gold Series, gold has been used as a monetary metal for thousands of years... It’s the most malleable and ductile metal, and it doesn’t tarnish or corrode. Over time, these properties have helped people to associate gold with concepts such as immortality or royalty. Even today, people are still finding new uses for gold that are impressive in their own right. For example, scientists recently discovered a gold alloy that is four times tougher than titanium. The following infographic puts the rich history of gold into perspective.