IronStats

Institutional Investors Could Soon Be Moving Gold Prices

Institutional Investors are a group that you may not think about much. The larger ones can be incredibly significant where investing is concerned. These pension funds and sovereign wealth funds have billions of dollars to invest. Because of this, they have to choose their investments and markets carefully or they will literally move the prices higher as they buy. It is important to understand the predicament these massive investors are facing lately as they are likely coming to the gold markets before long. Major Institutional Investors Have Few Viable Investment Choices The bigger institutional investors have their favorite markets. They like sovereign government bonds. The problem with these lately is that an enormous number of them are providing negative yields. A shocking $13 trillion of these bonds come with sub zero yields. Many of them are issued by governments that have high debt to to GDP ratios. This includes countries like Japan whose government finances are shaky and which have not experienced meaningful growth in years. Major institutional investors also tend to favor stocks. The sovereign wealth fund of Norway alone owns 5% of all stock securities in the world. The problem with these investments is that many stock markets throughout the globe are trading at or near their all time high levels. This is the case even though the profits of many corporations have proven to be in long term decline. Even putting money into bank accounts provides negative interest rates in a significant and increasing number of nations. This means that you or the institutional investor must pay the bank to hold your money for you. Institutional Investors Need Larger Markets to...

New Gold Products to Increase Interest in Precious Metals

It is always positive for gold when new precious metals products are launched. This demonstrates that the demand for and interest in the metal is not only stable but improving and growing. In the last few days, gold and silver have received this vote of confidence as a new range of precious metals offerings will soon start trading in London. This should provide resilient gold prices with even more support in the coming year. New Gold and Precious Metals Products and Partnership The World Gold Council is the strongest promoter of the safe haven metal in the world. In the second week of August they announced an exciting collaboration with several key market and industry players in London to come out with a whole suite of new precious metals products. This is called the LMEprecious. The new platform for trading the precious metals is a joint venture between the The London Metal Exchange, World Gold Council, and a diverse variety of important international banks. Among the investment banks participating in the new exchange are Goldman Sachs, Morgan Stanley, Societe Generale, ICBC Standard Bank, Natixis, and OSTC. This new suite of products will be traded on the new exchange and centrally cleared. The LMEprecious is set to launch in the first six months of 2017 once they finish clearing it through the regulatory approval process and testing out the integration of the system. This LMEprecious will increase the choices available to members of the precious metals community. It will offer a new means for discovering price, trading, and managing risk in an advanced market structure. Many market players feel that gold will benefit from a greater...

Fed Finding More Worrisome Excuses to Keep Interest Rates On Hold

It almost seems like the Fed is almost looking for excuses to hold off on raising interest rates anymore. This has a lot to do with their ongoing private concerns about continuing problems in the world economy as shown in the aftermath of the Brexit vote and with peripheral European banks still looking shaky. Italian banks seem particularly troublesome these days. These were all reasons enough to keep the Fed on hold last month. The latest excuses which they are leaning on this time around are based on lower oil prices helping to keep inflation down and more importantly weaker U.S. economic data. Low Inflation and Falling Oil Prices Another Excuse for the Fed One thing that stays the Fed’s hand is tame inflation. If inflation is low, the pressure for them to raise the rates drops significantly. Oil prices have been slipping into dangerously low territory for the producers again, helping to keep inflation down. The data Tuesday showed that inflation is even lower than expected. Tuesday also saw the release of data demonstrating weakening business investment on top of the already low economic growth rate for the second quarter. Economists have suggested that taken together, these three reasons are enough to keep the Fed on hold at present low interest rate levels for several months. These reasons all feed on and into each other as you will see. Oil Overproduction and Supply Glut Continues to Pressure Prices Old worries are plaguing the oil markets once again. An increase in production by OPEC nations, domestically in America, and Russia all at once and at the same time that demand for the crude product is...

Just When You Thought Brexit Was Over and Done…

It only took a month for most short memoried investors to forget about or shrug off the years of ramifications for which markets are in store as a result of the British vote to leave in the June 23rd Brexit referendum. Yet the real world ramifications of the decision are again popping up everywhere. This started over the weekend at the annual G20 Summit and has continued with a raft of negative economic data emerging from the world’s fifth largest economy. Impacts of it can already be seen straining the global mergers and acquisitions markets as well. G20 Leaders Worried About Continuing Brexit Fallout The G20 annual summit has a lot on its plate. So you know when British Chancellor of the Exchequer Phillip Hammond says that the Brexit risks for the world economy came up repeatedly during the summit that it is a sobering and serious relevant issue for investors around the world. The G20 leaders statement claimed that Brexit increases the risks to the overall world economy. They said that it only “adds to the uncertainty” facing the global economy at the end of their two day summit in China. G20 economic leaders were obsessed with the topic at the meeting and argued for the United Kingdom to stay a “close partner of the EU.” What is more, the G20 leaders are worried that breakup discussions between the European Union and the United Kingdom will turn ugly and be fraught with conflict and bitterness, the BBC reported. Amid the decisions made at the summit was the pledge for the G20 country finance ministers to work to build back up the world’s...

Europe’s Serious Problems Add to Global Financial Instability Woes

With European political and economic powerhouses France and now Germany struggling with Islamic State terrorism and the second greatest economy in Europe Great Britain suffering from slow motion financial meltdown after the Brexit vote, you can not take financial stability in the world for granted any longer. These geopolitical crises (and others like the just failed Turkish coup) remind you that you need to have a financial backstop for your investments and retirement funds. Gold has always been and remains the best answer as a safeguard against these and other as of yet unknown threats. The ultimate safe haven protects you from political, financial, and inflationary instability all at once. France on the Verge of a Nervous Breakdown or Even Civil War? France is suffering from three massive and devastatingly successful terror attacks in just over a year, each one seemingly progressively worse than the last one. Without a doubt, this is a harbinger of instability for the developed world. Expatriate residents in France have reported that this third and latest example of carnage, this time in Nice on the French national Bastille Day, has pushed the French to the border of serious escalation. What do you get when you combine an increasingly isolated, desperate, and radical Islamic immigrant population with an ever more popular right wing anti-immigrant political group in a nation awash in guns— the explosive and poisonous recipe for a brutal civil war. It may at first sound far fetched to think that the traditional French could turn on their Muslim immigrants, but consider what one senior French intelligence official Patrick Calvar told a committee in French parliament...