Here are the latest news items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. And it bears mention that most of these items are from the “tangibles heavy” contrarian perspective of SurvivalBlog’s Founder and Senior Editor, JWR. Today’s focus is on Tungsten. (See both the Commodities and Tangibles Investing sections.)
Arkadiusz Sieroń: Palladium Price Hits Record High. JWR’s Comments: I’ve been mentioning the platinum group metals off and on in SurvivalBlog since 2007. One mention of palladium in the blog was back in February of 2009, when palladium contracts were just $219 an ounce, and meanwhile platinum was at $1,091 an ounce! My current advice is to avoid getting sucked into the current hype about palladium. Don’t buy at the top. Platinum–which is presently priced below gold–is the real bargain, and far more likely to double in the next few years.
Economy & Finance:
At the great Zero Hedge site: NYC Dangerously Close To Bankruptcy, Experts Warn. Here is a quote:
“Financial analysts warn tax burdened businesses and individuals would flee in droves, and public spending would have to surge to record levels, which would set off a fiscal nuclear bomb.
Long-term debt is about $81,100 per household, and Mayor de Blasio will spend as much as $3 billion more in the new budget for a total of $89.2 billion.
Analysts said Mayor de Blasio had detailed $750 million in savings for the preliminary fiscal 2020 budget, but that amount won’t be enough to create a soft bottom during the next recession. Gov. Andrew Cuomo’s preliminary budget has $600 million in cuts for the city in 2020.
Spending is up 32% since Mayor de Blasio took office, the analysts told the Post that more spending cuts would be needed to get the fiscal house in order to avert bankruptcy during the next recession.
NYC’s long-term pension obligations have also expanded to levels that may not be manageable.
New York state is ranked No. 1 in the nation for the highest taxes, and the top 1% of NYC earners pay some 50% of income tax revenue, per the Post. If businesses and people continue to flee to lower tax states while spending continues to rise, it could lead to financial hardships for the city, analysts warn.”
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Another form Zero Hedge: February Payrolls Shocker: Hiring Plunges To 20K As Wage Growth Soars
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The latest from Harry Dent: What Boomers Will Do to Real Estate and Nursing Homes. A selection from his piece:
“Real estate prices will buckle under the deluge.
Japan’s aging population and eight million empty homes, trending towards 15 million, would vouch for this trend.
So, don’t believe this housing shortage will continue, especially with the “Great Reset” in consumer and asset prices just ahead from 2020 into 2023 or so. It will reverse and likely rapidly!
Lower prices and Boomers moving rapidly into nursing homes will make homebuying more affordable again and raise ownership for Millennials.
But, this younger generation seems to buy less and rent more regardless of affordability. They’re more interested in spending money on “experiences.” So, Millennial home buying won’t save the property market.
Mark my words: real estate will never be what it was before the 2006-2012 crash.”
I was recently asked by a consulting client about the current tensions in the South China Sea. His key question: What it would mean for global markets if we ever got close to a wartime situation with the People’s Republic of China? My response centered on strategic minerals. My advice: Invest in domestically-produced rare earths and tungsten. Since 80% of the world’s supply of tungsten comes from China, its price rise would be spectacular. And by the way, there is only one operating tungsten mine in the United States, in Utah. This remarkably self-contained mine is owned by the privately-held Scheelite Metals. They also own an inactive tungsten mine 50 miles east of Fallon, Nevada. That mine is currently up for sale for $2.3 million.
Tangibles Investing (Tungsten):
Individual investors can invest tangibly in pure tungsten rod, for speculation.
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For most Americans, their house is their principal tangible investment: New Houses Are Getting Smaller – But They’re Still Much Larger Than What Your Grandparents Had
Forex & Cryptos:
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SurvivalBlog and its Editors are not paid investment counselors or advisers. Please see our Provisos page for our detailed disclaimers.
Please send your economics and investing news tips to JWR. (Either via e-mail of via our Contact form.) These are often especially relevant, because they come from folks who particularly watch individual markets. And due to their diligence and focus, we benefit from fresh “on target” investing news. We often get the scoop on economic and investing news that is probably ignored (or reported late) by mainstream American news outlets. Thanks!