There have been reports in the mainstream media on the apparent decrease in the demand for gold due to low prices. However, the prices seem artificial and it is unlikely they will remain for long as the global demand remains strong. With time they will rise as supply becomes lower than the demand. Continue reading our market analysis
Puerto Rico the U.S. Territory
Puerto Rico is an island in the Caribbean Sea that is also a largely self-governing territory of the United States. Politically it does not have much power since its citizens cannot vote or elect someone to the senate. Puerto Rico only sends delegates who cannot vote on legislation except during committee meetings. One cannot rule out the evidence of politics at play in the crisis. Continue reading our market analysis
In 2001, Greece adopted the euro has a form of currency and joined the Eurozone. Marred in debt, the Greek government used this opportunity to secure billions of dollars in loans. The influx of cash was properly managed and used to try and modernize the country on par with its European neighbors. In 2004, the Greek capital played host to the Olympic Games at a cost of nine billion euros. Compared to the economic output of the country, the cost of the Olympic Games represented roughly five percent of Greece’s yearly gross domestic product. Problems were further compounded by inaccurate reports regarding the financial health of the country by financial officials, who ignored down played the nation’s plunging deficit for some time. The nation had no buffer or security net to fall back on when the United States went into a period of recession. The lack of exported goods coming out of the country and hits to the tourism sector made the severity of the nation’s financial woes very apparent to other Eurozone countries. The crisis facing Greece has left many people around the world concerned, and rightfully so. Continue reading our market analysis
The Gold Standard
The United States had been under the gold standard from 1879-1933. Following the bank failures of the Great Depression in the 1930’s and the stock market crash of 1929, President Roosevelt enacted the Gold Reserve Act of 1934. As the US was still facing the the after effects of the economic turmoil, this act attempted to counter these effects by confiscating the majority of gold owned by Americans in the 1930’s in return for paper money.
JP Morgan is Buying Lots of Silver
JP Morgan is buying monstrous amounts of silver. They have already stockpiled a very large amount of silver already. Being one of the most powerful banks in the world, is it fearing a hit to its reputation in case of another financial recession?
The bank’s stockpile of silver has already reached astounding levels within the last 4 years. Although it had nearly no silver by 2011, It drastically increased its silver stockpile by purchasing nearly 5M ounces of silver within one year. Continue reading our market analysis