Your Survival Guy doesn’t want you to be in the interest rate prediction business because the talking heads just might end up being wrong. Sure, the Fed funds rate may come down, but what if the buyers for the rest of the yield curve have a different opinion? Bond prices trade in anticipation of what’s to come six to twelve months from today, much like stocks do. The fact that we need to even talk about the direction of interest rates and the associated guesswork is a shame. A gold standard that sets the value of a dollar with the same certainty that there are twelve inches in a foot and … [Read more...]
Where Gold Shines
You know Your Survival Guy has a keen interest in the differences among America's states. You've seen my 2024 Super States, and you know that some states put citizens ahead of politicians' personal agendas, and some states don't. You have also read more recently that Your Survival Guy wants to see a return to the gold standard to return discipline to the monetary system. At U.S. Money Reserve, Brad Chastain lists the states in America where interest in gold is highest, writing: While the same Gallup poll indicates that gold’s reputation as a reliable asset varies by income and political … [Read more...]
Will the Fed Spur Gold Higher?
You read yesterday that gold prices have surpassed $1 million per 400-ounce bar. Now, gold investors may be waiting to see what the Federal Reserve discussed in its last meeting and for the tone of an upcoming speech from Fed Chairman Jerome Powell. They're looking for any possible clues to the Fed's actions at its meeting in September. At Reuters, Sherin Elizabeth Varghese report, writing: Gold prices eased on Wednesday, a day after hitting record highs, as investors awaited U.S. Federal Reserve meeting minutes and Chair Jerome Powell's speech for clues to the central bank's potential … [Read more...]
Is There Still Room To Run for Gold?
Gold prices have hit record highs in recent trading, but is there still room left for gold to rise? As you can see on my chart below, prices of gold in inflation-adjusted terms (real gold prices) are still well below the all-time highs of 1980 and haven't even eclipsed the peak prices of 2011 or 2020. In The Wall Street Journal, Joseph Hoppe discusses gold's recent record-breaking (in nominal terms) run, writing: Gold reached a new record high on rising hopes for a U.S. interest-rate cut and geopolitical tensions, rapidly reclaiming lost ground after a market crash and selloff in early … [Read more...]
America Can Save the Dollar with a Gold Standard
You know that for the last few years of the Biden administration, Americans have been hammered by the inflation tax. Biden and his friends in Washington, D.C. get to borrow dollars today, inflate the money supply, and pay the debt back with less valuable dollars later. That's not good for savers and retirees who work their tails off and build wealth only to see the value of that wealth eroded over time. You know Your Survival Guy thinks America needs a gold standard. The value of the dollar has plummeted since gold convertibility was ended in 1971. Take a look at my chart that shows the … [Read more...]
America Needs a Gold Standard
The Fed is in the inflation business. Look at the value of your dollars in gold today. In 1942, a dollar was worth 1/35th of an ounce of gold. Today, a dollar is worth 1/2465th of an ounce of gold. Since gold-dollar convertibility was ended in 1971, the value of the dollar has fallen by 87%. Americans born in 1971 still have years of work ahead of them before retirement. They have worked their entire lives while watching the value of the dollars they saved eroded by bad fiscal and monetary policy. Action Line: If Americans want stable money, peg the dollar to gold. When you want … [Read more...]
The Post-Gold Dollar
As Americans suffer through the fourth year of Bidenflation, some attention must be paid to how the dollar became so vulnerable to overspending politicians like Biden and placating Federal Reserve Chairmen like Jerome Powell. It all began when the dollar's link to gold was severed. President Richard Nixon made the final decision to eliminate the dollar's gold convertibility, but the groundwork for the dollar-gold disconnect was laid long before by Lyndon Johnson, who sought to fund both a war in Vietnam and a massive expansion of social welfare with his "Great Society." In a good history of … [Read more...]
The Need for a Gold Standard Is Clear: Discipline
You know that 12 inches is a foot. It doesn’t change. It’s a fact of life. Why, then, is the value of the dollar thrown around like a rubber ball? This can’t go on forever, and the government hates discipline. You can expect there will be cuts to services and increases in taxes before any attempt to reduce government spending takes place. That's why, despite solid tax revenues, America's deficits are soaring. The Wall Street Journal's editorial board explains: You may have heard that the 2017 GOP tax cuts blew a giant hole in the federal budget—or so Democrats tell voters. The … [Read more...]
A Return to Gold Standard Would Work Wonders
Are you heading abroad this summer? Good timing. As Your Survival Guy discovered before his recent trip across the pond, the US dollar carries some weight. Not exactly par with the pound or euro but solid compared to the last decade or so of taking trips to Europe, mostly to Paris. But like the upcoming Paris Olympics, this is a competition between currencies. What will be the catalyst to keep buyers coming back for more US dollars? What’s a better solution to keeping the crown on “king” dollar? A return to the gold standard. In the early 70s, my father-in-law, Richard C. Young, had a … [Read more...]
Costco Gold Bars Sell Out Despite Premium Price
If you can’t get your gold at Costco, consider an ETF that invests in gold. The Gagnam Times reports: Costco, a well-known warehouse discount store in the U.S., is experiencing explosive popularity for a product that has been selling out for several consecutive days. This product is none other than the gold bars sold at Costco, which were launched in the U.S. last year and quickly sold out. Costco is expected to generate ten times more revenue this year than last. Surprisingly, these gold bars are sold at 2% more than the market price. Despite the higher price, there’s a reason why they’re … [Read more...]