The price of gold rose on Tuesday morning as housing construction plunged to its lowest level since October. Figures from the Department of Commerce showed that the seasonally adjusted annual rate of new building fell 5 percent in June, to 549,000.
The biggest drops, the report found, were in the construction of condominiums and apartments. Single-family homes, meanwhile, were down only .7 percent.
Along with weak revenues from IBM and Goldman Sachs, the news pushed equities markets downwards. Commodities like gold and silver gained, however, as traders searched for a haven. The price of gold rose .25 percent to $1,184.90 per troy ounce.
Fear of a double-dip recession, particularly in the housing market, is growing. An $8,000 tax credit for new buyers, which was extended through this April, helped keep realtors and builders afloat for a while, but now efforts to re-inflate the housing bubble seem to be leaking.
This increases the chance that the government will try to fight back by pumping more capital and liquidity into the economy. Even if there are short-term deflationary pressures, in the longer term, inflation will become a serious concern.
Investors should look at hedging their portfolios with holdings of dealer gold and silver, which will resist inflationary tendencies on the part of central banks.
Showing posts with label gold. Show all posts
Showing posts with label gold. Show all posts
Tuesday, July 20, 2010
Monday, June 14, 2010
Superior Gold Group - National debt exceeds 90 percent of GDP
As the U.S. economy continues to be drained by an unsustainable national debt, job creation is likely to be one of the many areas that will take a hit in the coming years.
A recent Treasury Department report estimated that the total national debt for fiscal year 2010 will stand at $13.6 trillion, which is 93 percent of the gross domestic product.
With that in mind, Representative Dave Camp, a Michigan Republican who serves as ranking member of the Ways and Means Committee, recently pointed out that a national debt load above 90 percent of the GDP will start eroding the nation's economic growth.
"The debt is preventing us from creating the jobs America needs," said Camp. "This report is yet another warning that Congress cannot continue to pass unpaid-for spending without further hurting our recovery."
As the U.S. national debt continues to soar with little relief in sight, now may be the time for concerned investors to consult with silver and gold dealers about traditional safe harbor options.
A recent Treasury Department report estimated that the total national debt for fiscal year 2010 will stand at $13.6 trillion, which is 93 percent of the gross domestic product.
With that in mind, Representative Dave Camp, a Michigan Republican who serves as ranking member of the Ways and Means Committee, recently pointed out that a national debt load above 90 percent of the GDP will start eroding the nation's economic growth.
"The debt is preventing us from creating the jobs America needs," said Camp. "This report is yet another warning that Congress cannot continue to pass unpaid-for spending without further hurting our recovery."
As the U.S. national debt continues to soar with little relief in sight, now may be the time for concerned investors to consult with silver and gold dealers about traditional safe harbor options.
Tuesday, May 18, 2010
Superior Gold Group - Stocks fall, euro at 4-yr low, oil dips
Stocks fell for a third day on Monday on growing concerns that Europe's debt problems will hamper a global rebound. The Dow Jones industrial average fell about 80 points in late morning trading. The Dow fell 81.4 points, or 0.8%, to 10,538.6. It has fallen seven of the last nine days.
Stocks fell after the euro, which is used by 16 countries in Europe, fell to a four-year low. Investors are questioning whether steep budget cuts in countries including Greece, Spain and Portugal will hinder an economic recovery in Europe and in turn, the US traders are also concerned that loan defaults could ripple through to banks in stronger countries like Germany and France.
The austerity measures are required under a nearly $1 trillion bailout programme the European Union and International Monetary Fund agreed to last week. The rescue package provides access to cheap loans for European countries facing mounting debt problems.
The euro fell to as low as $1.223 early Monday before moving higher. The plunging euro has been driving trading around the globe in recent days. The weakness in the euro has helped boost the value of safe-haven investments like the dollar, Treasuries and gold. It has also driven commodities like oil lower.
Oil fell below $70 a barrel for the first time since February. Oil is priced in dollars so a stronger dollar deters investment in oil. Crude oil fell $1.76 to $69.8 per barrel on the New York Mercantile Exchange. That hit shares of energy companies.
A disappointing report on regional manufacturing from the New York Federal Reserve weighed on sentiment. A forecast from home-improvement retailer Lowe's Cos also fell short of expectations. The questions about Europe overshadowed other news and dominated trading. Investors in the US who had been growing more confident about a rebound in this country now are questioning whether the problems in Europe will disrupt a recovery.
Stocks fell after the euro, which is used by 16 countries in Europe, fell to a four-year low. Investors are questioning whether steep budget cuts in countries including Greece, Spain and Portugal will hinder an economic recovery in Europe and in turn, the US traders are also concerned that loan defaults could ripple through to banks in stronger countries like Germany and France.
The austerity measures are required under a nearly $1 trillion bailout programme the European Union and International Monetary Fund agreed to last week. The rescue package provides access to cheap loans for European countries facing mounting debt problems.
The euro fell to as low as $1.223 early Monday before moving higher. The plunging euro has been driving trading around the globe in recent days. The weakness in the euro has helped boost the value of safe-haven investments like the dollar, Treasuries and gold. It has also driven commodities like oil lower.
Oil fell below $70 a barrel for the first time since February. Oil is priced in dollars so a stronger dollar deters investment in oil. Crude oil fell $1.76 to $69.8 per barrel on the New York Mercantile Exchange. That hit shares of energy companies.
A disappointing report on regional manufacturing from the New York Federal Reserve weighed on sentiment. A forecast from home-improvement retailer Lowe's Cos also fell short of expectations. The questions about Europe overshadowed other news and dominated trading. Investors in the US who had been growing more confident about a rebound in this country now are questioning whether the problems in Europe will disrupt a recovery.
Monday, February 15, 2010
Gold momentum enjoys a strong week
Commodities, including gold, had a good week in part because of growing economic optimism in various countries around the world.
A report by Bloomberg cited positive economic signals in Australia and China as fueling gains in industrial metals including copper, while concerns about sovereign debt problems in Europe were further fueling the momentum for investing in gold coins and similar options.
"Gold is moving along with all of the commodities. There's some economic optimism that's bringing in buying. People want to embrace gold with the overall risk tolerance that is coming back into the market today," Adam Klopfenstein of Lind-Waldock told the financial news provider.
Gold prices had previously staged a small retreat, which gave more investors the potential to add to their positions or to get into the market at a lower price.
Looking ahead, demand for gold and silver is likely to remain strong in the coming months due to a mix of concern for the economy in some quarters, as well as the increasing demand for precious metals in developing nations, which have been especially seeing renewed financial activity so far.
A report by Bloomberg cited positive economic signals in Australia and China as fueling gains in industrial metals including copper, while concerns about sovereign debt problems in Europe were further fueling the momentum for investing in gold coins and similar options.
"Gold is moving along with all of the commodities. There's some economic optimism that's bringing in buying. People want to embrace gold with the overall risk tolerance that is coming back into the market today," Adam Klopfenstein of Lind-Waldock told the financial news provider.
Gold prices had previously staged a small retreat, which gave more investors the potential to add to their positions or to get into the market at a lower price.
Looking ahead, demand for gold and silver is likely to remain strong in the coming months due to a mix of concern for the economy in some quarters, as well as the increasing demand for precious metals in developing nations, which have been especially seeing renewed financial activity so far.
Friday, February 12, 2010
Economic consequences of Greek debt could be wide-ranging
While the European Union continues to weigh its response to a fiscal crisis in Greece that has brought further attention to the global problem of excessive sovereign debt, some are warning that the United States may be set to face its own similar situation in the not-too-far future.
Writing in an op-ed piece in London's Financial Times newspaper, Neil Ferguson warns that it "would be a grave mistake" to believe that current debt woes rocking Greece, Portugal and Spain will not end up spreading to stronger European economies.
He adds that the current situation is "a fiscal crisis of the western world" and that "its ramifications are far more profound than most investors currently appreciate." Worse for the EU, there are few options for dealing with Greek debt that can be considered desirable from a financial standpoint.
While much of the world' attention has been focused on Europe in recent days, the United States has been drawing concern over its own skyrocketing debt, with a budget deficit exceeding $1 trillion for the second consecutive year and a national debt that will exceed $14 trillion.
If and when such debt burdens become unsustainable, those who have sought out gold and silver investments will be well-positioned to ride out the ensuing fiscal turmoil.
Writing in an op-ed piece in London's Financial Times newspaper, Neil Ferguson warns that it "would be a grave mistake" to believe that current debt woes rocking Greece, Portugal and Spain will not end up spreading to stronger European economies.
He adds that the current situation is "a fiscal crisis of the western world" and that "its ramifications are far more profound than most investors currently appreciate." Worse for the EU, there are few options for dealing with Greek debt that can be considered desirable from a financial standpoint.
While much of the world' attention has been focused on Europe in recent days, the United States has been drawing concern over its own skyrocketing debt, with a budget deficit exceeding $1 trillion for the second consecutive year and a national debt that will exceed $14 trillion.
If and when such debt burdens become unsustainable, those who have sought out gold and silver investments will be well-positioned to ride out the ensuing fiscal turmoil.
Sunday, February 7, 2010
Stability of Social Security may be questionable
Investors have been consulting with gold and silver dealers for years because of concern about economic instability and the long-term prospects for its recovery.
However, a recent report is giving investors a whole new reason to worry about the state of their finances heading into the future.
An article from Fortune Magazine highlights data from the Congressional Budget Office showing that for the first time in more than two decades, the Social Security system is receiving less in taxes than it distributes in benefits, which invites speculation about the long-term future of federal entitlement programs.
The magazine notes that this raises the danger that as a result, Social Security could require a massive government bailout not unlike the massive infusions of cash that were provided to a number of major corporations as the recession was getting underway.
If the U.S. was to default on its debt obligations or to pay for its largest entitlement programs, the ensuing financial ramifications would likely cause great difficulty and potential chaos in the world markets. With that in mind, investing in precious metals like gold and silver is a sound safeguard against possible setbacks in the future.
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News brought to you by Superior Gold Group – expert gold dealers offering precious metals products.
However, a recent report is giving investors a whole new reason to worry about the state of their finances heading into the future.
An article from Fortune Magazine highlights data from the Congressional Budget Office showing that for the first time in more than two decades, the Social Security system is receiving less in taxes than it distributes in benefits, which invites speculation about the long-term future of federal entitlement programs.
The magazine notes that this raises the danger that as a result, Social Security could require a massive government bailout not unlike the massive infusions of cash that were provided to a number of major corporations as the recession was getting underway.
If the U.S. was to default on its debt obligations or to pay for its largest entitlement programs, the ensuing financial ramifications would likely cause great difficulty and potential chaos in the world markets. With that in mind, investing in precious metals like gold and silver is a sound safeguard against possible setbacks in the future.
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News brought to you by Superior Gold Group – expert gold dealers offering precious metals products.
Friday, February 5, 2010
Overseas gold demand expected to remain strong
The market for dealer gold is likely to get a considerable boost in the coming years from emerging economies like India, and perhaps most significantly, China.
A recent article in Canada's National Post newspaper quotes analyst Alan Heap of Citigroup Global Markets as saying that China is the "most important source" of gold's demand growth in the future, also noting that in 2009, demand in the country was up by 10 percent.
The newspaper noted that gold is getting increased attention from Chinese investors in light of the recent decision by the government to slow the pace of bank lending activity, which has helped to fuel concern about possible inflation.
Also, the report added that Asian banks have great potential to increase their gold holdings because they hold relatively little of it in comparison to European banks.
Elsewhere, observers have noted that an emerging middle class in China, and other countries like India, is helping to further increase demand for gold products. In general, precious metals are likely to see substantial demand from emerging economies because as industrial activity resumes in the aftermath of the recession, many applications, from automobiles to electronics, require gold, silver and other materials
A recent article in Canada's National Post newspaper quotes analyst Alan Heap of Citigroup Global Markets as saying that China is the "most important source" of gold's demand growth in the future, also noting that in 2009, demand in the country was up by 10 percent.
The newspaper noted that gold is getting increased attention from Chinese investors in light of the recent decision by the government to slow the pace of bank lending activity, which has helped to fuel concern about possible inflation.
Also, the report added that Asian banks have great potential to increase their gold holdings because they hold relatively little of it in comparison to European banks.
Elsewhere, observers have noted that an emerging middle class in China, and other countries like India, is helping to further increase demand for gold products. In general, precious metals are likely to see substantial demand from emerging economies because as industrial activity resumes in the aftermath of the recession, many applications, from automobiles to electronics, require gold, silver and other materials
U.S. credit warning a new reason to consider dealer gold investments
People who are waiting for a return to normalcy in the stock market and the broader U.S. economy got some unsettling news this week in the form of a warning from Moody's Investors Service about the long-term state of the nation's credit rating.
According to the UK's Financial Times newspaper, the firm has warned that the triple AAA sovereign credit rating of the United States could be jeopardized by either weak economic growth or a failure to properly address the country's budget deficit and national debt.
The newspaper went on to note that Moody's sees the U.S. currently on a debt growth trend that is "clearly continuously upward," adding that if the economy grows less than project, it will result in an even larger budget deficit than currently projected.
With a national debt that is rapidly approaching $14 trillion, investors around the world have already been feeling growing reservations about the long-term prospects for the U.S. economy and dollar. Compounding this concern is looming debt problems in various other countries.
Still, investors have traditionally found a safe haven in gold and other precious metals when such doubts have emerged over the years.
According to the UK's Financial Times newspaper, the firm has warned that the triple AAA sovereign credit rating of the United States could be jeopardized by either weak economic growth or a failure to properly address the country's budget deficit and national debt.
The newspaper went on to note that Moody's sees the U.S. currently on a debt growth trend that is "clearly continuously upward," adding that if the economy grows less than project, it will result in an even larger budget deficit than currently projected.
With a national debt that is rapidly approaching $14 trillion, investors around the world have already been feeling growing reservations about the long-term prospects for the U.S. economy and dollar. Compounding this concern is looming debt problems in various other countries.
Still, investors have traditionally found a safe haven in gold and other precious metals when such doubts have emerged over the years.
Monday, February 1, 2010
Gold firms as dollar gives up early gains
Gold prices edged higher in Europe on Monday as the dollar gave up early gains to turn lower versus the euro, increasing interest in the precious metal as an alternative asset.
Interest from physical gold buyers after a 1.6 percent dip in prices in January also helped to underpin prices, analysts said, and from a technical point of view the metal appears to be bottoming out. "While most commodity markets have come under severe pressure over the past week, gold has held its ground impressively," said technical analysts at Barclays Capital. They said the metal was holding above its December low at $1,074 an ounce and 15-month trendline support at $1,069.
"With daily momentum oscillators in oversold territory, while daily sentiment has reached extremes not seen since September 2008 -- only 15 percent of DSI respondents are bullish gold -- we are on the lookout for signs of basing," they added.
Source: Economic Times
Interest from physical gold buyers after a 1.6 percent dip in prices in January also helped to underpin prices, analysts said, and from a technical point of view the metal appears to be bottoming out. "While most commodity markets have come under severe pressure over the past week, gold has held its ground impressively," said technical analysts at Barclays Capital. They said the metal was holding above its December low at $1,074 an ounce and 15-month trendline support at $1,069.
"With daily momentum oscillators in oversold territory, while daily sentiment has reached extremes not seen since September 2008 -- only 15 percent of DSI respondents are bullish gold -- we are on the lookout for signs of basing," they added.
Source: Economic Times
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