Sunday , 21 July 2024

Tag Archives: negative real interest rates

Increasing Evidence Indicates a Reversal in Gold & Silver Trend Is Near

We can find nothing – nothing – that has happened over the past two years that invalidates the principal reasons we've laid out for owning precious metals. [This article] looks at the key reasons why we originally recommended gold and silver plus, sadly, several new drivers that have developed recently all of which confirm that the bruised precious metal investors out there should still sleep well at night, secure that the foundational rationale for holding gold and silver remains intact.

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Bonds Are NOT a Safe Place to Be – Here’s Why (+2K Views)

For those who think bonds are a safe place to be, you might want to reconsider. In addition to rising sovereign risk (yes, for the U.S. as well as other countries), there is interest rate risk....[should you not] hold it to maturity. If interest rates rise, then the value of your bond falls (Bonds can produce capital gains/losses, just like stocks.) and the possibility of interest rates rising is pretty good. Words: 530

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Low Real Interest Rates Say Gold Bull Still Has Legs! Here's Why

Many agree that the United States' massive budget deficits and global monetary inflation support the gold bull market. I don't see this changing in the near future. Still, sentiment is not enough upon which to rely. I need a yardstick and, for me, that yardstick is U.S. real interest rates. [Let me explain why that is the case.] Words: 1600

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Bill Gross: $66 Trillion Debt Hangs Over U.S. Like a Damocles Sword

Even though the U.S. has managed to avert a debt crisis and perhaps a ratings downgrade, there remains a stain on our reputation, a scarlet “A” for budgetary “Abuse,” that will not disappear. The whole world was watching, and what they saw was a dysfunctional government taking its country to the financial precipice and backing off at the very last moment. [That being said, what options does the U.S. government have to reduce/eliminate its current $10 trillion of outstanding Treasury debt and an unfathomable $66 trillion of future liabilities? I have identified 4 likely courses of action all of which will lower the standard of living of every American.] Words: 1374

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