Here are the latest news items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. In this column, JWR also covers hedges, derivatives, and various obscura. This column emphasizes JWR’s “tangibles heavy” investing strategy and contrarian perspective. Today, we look at rising mortgage interest rates. (See the Economy & Finance section.)
Precious Metals:
Just as I predicted, there has been some profit-taking in the gold and silver markets. As of Thursday afternoon, spot gold was around $2,345 and silver was around $27.65 per Troy ounce. But the markets won’t be fooled. I expect strong buying in the Asian markets to boost gold, in particular, in the next few weeks. The new floor for the spot gold price will likely be around $2,370 USD per Troy ounce. – JWR
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At Gold-Eagle.com: Gold SWOT: The Sharp Rise in Gold Prices This Year Could Provide a Nice Bump to Miners’ Earnings.
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Mainstream Fund Managers Jumping on the Gold Bandwagon.
Economy & Finance:
Over at Wolf Street: Mortgage Rates over 7% and Heading Higher, Housing Market Still Frozen, Lots of Buyers on Strike as Prices Still Too High. The article begins:
“Mortgage rates continue to trudge higher from the abandoned Rate-Cut-Mania low. The average conforming 30-year fixed mortgage rate rose to 7.13% in the latest week, the highest since early December, according to the Mortgage Bankers Association today, as the 10-year Treasury yield has re-surged amid the Fed’s vigorous backpedaling on its December rate-cut visions after the presumed-vanquished inflation raised its ugly head again.
The MBA’s measure of the average 30-year fixed mortgage rate has risen 37 basis points from the Rate-Cut-Mania low of 6.76% in early January…”
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Foreign holdings of US Treasuries hit record high; Japan holdings rise, data shows.
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Reader C.B. suggested this article: IMF sounds alarm on U.S. debt, warning ‘something will have to give’.
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The UFC, Mises, and the Six Lessons of Austrian Economics.
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California in a jam after borrowing billions to pay unemployment benefits.