Gold and Geopolitics
These last few weeks have acted as a nice reminder that the fundamentals of the gold trade can span beyond the idea of Quantitative Easing and the US Federal Reserve.
read moreJobs and Syria
The market quietly awaited the August jobs report Friday with premarket trading and futures markets remaining little unchanged ahead of the reading.
read more39 Years Ago Today
The date was August 9th, 1974 when Richard Nixon resigned the Office of the President of the United States.
read moreAhead of Friday’s Job Numbers
Six years after a recession that rocked the global financial system, there is no shortage of excitement, especially during a season that is known as the “doldrums of summer.”
read moreOne Year Later, the Euro’s still hear and the Zone Lives as One
“Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.”
‒ Mario Draghi
read moreA Farewell to Congress
“The economic recovery has continued at a moderate pace in recent quarters despite the strong headwinds created by federal fiscal policy,” was Ben Bernanke’s opening line when delivering what is expected to be his final testimony before the often unpredictable US congress on Wednesday.
read moreThe Bernanke Put Lives On
Investors who have been salivating for reassurance regarding the outlook for more monetary stimulus from Federal Reserve Chairman Ben Bernanke got their wish this last week.
read moreHere We Go Again
One thing has been consistent with the selloff in gold. There’s always a really good story to explain why the market reacted the way it did.
read moreIt’s All About Inflation
The biggest rumour or perception though that QE created was that it would lead to rampant inflation. Such expansive monetary policy would lead to the demise of the US dollar, and one of few assets able to hold value was gold.
read moreThe Fed Plays On
It’s hard to avoid the topic of how the emerging market funds have been absolutely hammered in the last month over the premature fear of interest rates starting to creep higher in the United States.
read moreThe Ultimate Shift
The US economic recovery is really at a crossroads in terms of which direction it will head next.
read moreOECD and the Euro
This week, the Organization for Economic Cooperation and Development (OECD) revised down their forecast for global economic growth.
read moreThe Rising Greenback
The movement witnessed in all asset classes on Wednesday more than adequately exemplifies the US Federal Reserve’s influence on financial markets.
read moreLoonie Under Attack
If the downward pressure on the loonie from the selloff in commodity prices wasn’t convincing enough to send it below 98 cents, the flat inflation numbers reported Friday morning was definitely the icing on the cake.
read moreTide Change
As Canadians, we cannot help but shiver a little bit when Stanley Druckenmiller, the man that “broke the bank of England” with George Soros, calls for an end to the commodities supercycle.
read moreCoyne Affair 2.0
It seems surprising, given that Mr. Carney did not even complete his full term at the Bank of Canada that our federal government would imply by this maneuver for a switch in policy direction.
read moreOverconfident American?
If anything is evident from the United States first quarter GDP numbers it is that confidence has returned to their economy.
read morePaper versus Physical
Demand for taking delivery of physical gold and silver has multiplied thanks to institutional investors and investment banks ditching their positions in the asset class.
read moreGold’s Fashionable Fall
There is a lot to make of the action in the gold market over the last week. This selloff though, can really be attributed to three main events, and the rationale behind them will continue to influence the market in the months to come.
read moreSociete Generale’s End to a Golden Era
Societe Generale released a special report this week that’s caught the attention of many commenting on what they dub “The End of the Gold Era.” Further, their bearish outlook has the price of gold to finish the year at $1,375 per ounce.
read moreThe Beginning of the End of the Euro…for Cyprus?
There can be rallies in the street and turmoil surrounding government buildings, but plain and simple, when the numbers don’t add up the options are extremely limited.
read moreCanada versus the US
We have been so preoccupied by the return of the US markets that we have failed to notice how far behind our own TSX truly is.
read moreDeficits and Downgrades
Over the past week we witnessed both Moody’s downgrade the sovereign debt of Great Britain, and Fitch issuing warning on debt and lack of budget and entitlement reform in the United States.
read moreDissent at the Fed
The release of January’s FOMC minutes had a fairly substantial impact on precious metals this week as on Wednesday alone we witnessed more than a 2 percent sell off in the price of gold.
read moreAre Currency Wars Really our Concern?
The word “war” perhaps over-hypes the implications of these policies. None the less, measures to spur domestic growth have direct implications on a country’s exchange rate, and thus are much more far-reaching.
read moreCould the US oil boom be the trigger for Canada’s Housing Bubble?
Canadians are overleveraged. We are holding to much debt. Why then, when there are present opportunities to relieve household imbalances are we balking at the opportunity to prosper as a nation?
read moreLoonie Loses it’s Luster?
The Canadian dollar against its US counterpart had a very narrow trading range over the last few months. Not this week, as the loonie fall over a cent and a half and finished trading at close to 99 cents.
read moreGermany wants its gold back—should we worry?
News surfaced this week that the Bundesbank, Germany’s central bank, was recalling gold that it holds outside of the country. But does it matter where Germany really stores their gold?
read moreThe Trillion Dollar Coin
The debt ceiling has been raised on 78 separate occasions since 1960, and pursuing alternative measures to avoid exhausting the US Treasury’s coffers will ultimately shock both creditors and rating agencies.
read moreCalling the Fed’s Bluff
The price of gold has moved up significantly in response to the US central bank’s issuance of cheap credit, but the question then becomes what happens to the price of gold when the Fed takes the punch bowl away?
read moreLack of Governance
What is the real significance of America actually diving over this fiscal cliff?
read moreEconomic Reality is a Drag on Market Optimism
Stock markets seem to be carrying a false sense of optimism that economic growth is stronger than it actually is. The economic data, however, tells a story that is quite contrary.
read moreAnemic Economic Growth
Does the moderate growth of the Canadian economy carry any implications for interest rates in the upcoming year?
read moreLoose Monetary Policy and Commodity Based Currencies
Can commodity based currencies be looked to for their stability?
read moreIs Gold Still an Attractive Investment?
Beyond potential returns that gold bring, the uncertainty in global markets still makes exposure to gold as favorable as ever.
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