Here are the latest 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 JWR. (SurvivalBlog’s Founder and Senior Editor.) Today’s focus is on the U.S. public and private debt. (See the Troubling Trends section.)
First off, here is a headline from Monday: Surging US Dollar Sinks Gold And Silver Prices
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Gold Could Face ‘Further Punishment’ – FXTM. JWR Says: “Buy on the dips.”
Morningstar reported on Tuesday: “Political troubles in Spain, after the weekend saw violent clashes over the Catalonia referendum, took a dent out of the main Ibex index, which was down over 1% at 10.527.”
The price of crude oil seems to have stabilized around $50 per barrel. This is bad news for OPEC. And it is not reassuring to the Bakken shale oil producers. (Since $50 is right around break-even for them.)
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After a year in the doldrums, the price of nickel ore is back up to where it was in October of 2016. Though only half of where it was at the odd 2014 price spike, nickel is still attracting plenty of investors. Small investors can of course hedge by stockpiling U.S. 5 Cent Pieces–still available at face value.
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Troubling Trends (U.S. public and private debt):
The private debt to GDP ratio is creeping back up to 200%. (And that is with GDP surging!) Meanwhile, the pubic debt is now north of $20 trillion. That is 103% of GDP. And net interest payments on the debt are estimated to total $276.2 billion this fiscal year, or 6.8% of all federal outlays. That is not sustainable in the long run. So be prepared for continuing debasement of our currency, as Uncle Sugar’s “escape mechanism” for its enormous debt.
This 2016 article serves as a good primer: Avoid These Five Traps When Buying Real Estate in Self-Directed IRAs
SurvivalBlog and its Editors are not paid investment counselors or advisers. So 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!