IronStats

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...

Germany’s Angela Merkel Now Holding the Keys to the World’s Economy

The latest crisis across the pond has reared its ugly head, and it is not the Brexit. Italy’s large and shaky banking sector is about to require a massive bail out (or bail in alternatively) in order to prevent bank failures and bank runs across not only the Italian peninsula, but conceivably all of the European continent. The only person with the ability to stop such a crisis is ironically EU strongman German Chancellor Angela Merkel. Even now she is wrestling with questions about unfettered money printing and unlimited national asset buying that will determine the future of not only the EU economy, but that of the entire world, for years and potentially decades to come. Consider what is hinging on Merkel’s decision to allow or forbid large scale quantitative easing across the cultured continent now. What Happens if Merkel Refuses to Allow Large Scale National Money Printing? Saving Italian and struggling European banks and the failing economies of the periphery in Europe requires quantitative easing on a large scale and the end to German enforced austerity throughout the continent. Angela Merkel knows this all too well, but she is wrestling with her own personal German demon in the form of the ghost of Herr Haverstein. Rudolph Haverstein was the German Central Banker responsible for limitless German money printing almost a hundred years ago that led to hyperinflation and the ultimate collapse of the Weimar Republic and subsequent rise of Adolph Hitler. In the collective German memory, this is the worst possible route to go with potentially disastrous consequences not only for Germany but all of continental Europe. Should Premier...

Silver Investing Worth Another Serious Look These Days

Silver is all too easily and often forgotten standing in the shadow of its big brother gold as it does so much of the time. Analysts and investors stopped overlooking this other safe haven metal on Monday as the prices of silver smashed through a two year old high, reaching over $21 per ounce. Silver is now up an impressive almost 49% on a year to date comparison. Despite this fact, the little brother of gold likely still has more room to run than does the yellow metal at this point. We’ll look at the several key reasons here. China Massively Increasing Its Imports of Silver As with most good bull market rally stories over the last decade or more, it all starts with China. The Wall Street Journal recently reported that silver roared to a new two year long high this past Monday when Chinese buyers placed serious bets on both the silver futures market and by acquiring enormous quantities of the physical silver metal itself. On the Fourth of July holiday, the price of silver in spot markets rocketed nearly 7% as physical silver contracts and benchmark futures trading in Shanghai hit their limit. Silver futures for September went for $20.41 per ounce on the action, having reached over $21 an ounce in the prior 24 hours period. China has also continued to be one of the world’s largest silver importing countries because of the metal’s myriad of industrial uses. Thanks in no small part to China’s massive solar panel construction, they now consume a full 20% of worldwide silver demand. In the first ten months of 2015, Chinese silver imports...