Tuesday , 3 December 2024

Economy

What the Rising Dollar Price of Gold Really Means

A soaring gold price is a vote of "no confidence" in the central bank and the dollar [and]... reflect a growing restlessness with the increasing money supply, our budgetary and trade deficits, our unfunded liabilities, and the inability of Congress and the administration to reign in runaway spending. Words: 1911

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US Banks Stocks Decline on Executive Comments – Is this a Good Time to Enter the Sector

2024-09-13 US Bank Stocks image_sm

U.S. banking stocks are underperforming, with a 6% drop in September 2024, compared to the S&P 500 remaining flat. Bank executives have issued warnings about lower-than-expected recoveries from investment banking and the effects of looming interest rate cuts. With U.S. banks trading at lower P/E ratios (11.7x for 2024 and 10.4x for 2025), analysts view the sector as potentially undervalued. Meanwhile, capital requirements have been scaled back, but pessimism has intensified after Berkshire Hathaway reduced its investment in Bank of America. This may offer an entry point into the sector for value investors.

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Gold Rises in August Amid Rate Cut Speculation and Election Concerns

2024-09-06 World Gold Council Updates

The World Gold Council published its monthly Gold Market Commentary for August this week. Gold surged by 3.6% in August, reaching $2,513 per ounce, driven by a weaker U.S. dollar and lower Treasury yields. Investors are positioning for potential rate cuts by the U.S. Federal Reserve and the uncertainties surrounding the U.S. election. Demand also saw a boost from a reduction in gold import duties in India, contributing to strong buying interest. Meanwhile, gold-backed ETFs extended their four-month inflow streak. As traders brace for a volatile second half of 2024, gold remains a key hedge against risk, with global economic uncertainties and U.S. political developments fueling the demand.

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Five-Year Performance Review of Gold and Gold-Related ETFs Amid Market Volatility

Over the past five years, gold and gold-related ETFs have experienced significant fluctuations due to economic events, changing interest rates, and shifting market sentiment. This article reviews the performance of gold, the SPDR Gold Trust (GLD), VanEck Gold Miners ETF (GDX), and VanEck Junior Gold Miners ETF (GDXJ). Gold rose by over 60%, while GLD closely mirrored this increase. In contrast, GDX and GDXJ significantly underperformed, with GDX up only 30% and GDXJ up just 12%. This analysis highlights the varying risks and returns associated with different gold-related investments.

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Can Silver Get You Through a Stock Market Crisis

On Monday, major U.S. stock indexes experienced their most significant decline since 2022. The S&P 500 fell by approximately 3%, while the NASDAQ dropped over 6%. As investors navigate through the current financial turbulence, attention is increasingly turning towards assets that can provide stability amidst uncertainty. Silver, historically known as a safe haven during economic downturns, is garnering interest due to its potential to hedge against market volatility.

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