GALLUP: Unemployment rate at 8.3%…

December 6, 2012

The US economy is NOT getting better. This has serious implications for the US dollar and the financial markets. NOW is the time to stock up on hard assets as a form of financial insurance. Coin Trader can advise you on the best hard asset investments for your personal goals and needs.

U.S. Unadjusted Unemployment Shoots Back Up

U.S. unemployment, as measured by Gallup without seasonal adjustment, was 7.8% for the month of November, up significantly from 7.0% for October. Gallup’s seasonally adjusted unemployment rate is 8.3%, nearly a one-point increase over October’s rate.

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http://www.gallup.com/poll/159104/unadjusted-unemployment-shoots-back.aspx

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Another Buying Opportunity in Gold

November 2, 2012

The price of gold fell to a two-month low today on a stronger than expected US employment report.

The consensus forecast was for the US economy to add about 125,000 non-farm jobs in October. The actual figure was 170,000. This boosted confidence in the US dollar, which took its natural toll on the price of gold, which fell below $1,700 per ounce.

The reason that this is such a good buying opportunity for investors is that usually gold reacts positively to signs of strength in the US economy. But because so many people are concerned about the US dollar, any good economic news creates speculation that more monetary stimulus may be unnecessary.

Many economists share a different view.

They believe that the existing monetary stimulus is not in fact “working” and thus not responsible for the stronger than expected employment report.

Moreover, the conditions that truly have created a long-term crisis in the dollar are America’s monetary and fiscal policies combined. With annual federal budget deficits of $1 trillion on top of the already gargantuan federal debt of nearly $17 trillion, the world is already awash in dollars it does not want. Couple this with years of low interest rates and a weak dollar is inevitable.

One positive employment report doesn’t change that, it merely creates a correction that represents a great buying opportunity for gold investors.


Europe gets closer to the brink

October 26, 2012

While all of the attention seems focused on the USA due to our presidential election, the world economy may be what matters most–and nothing that the next president of the United States can do will necessarily save the entire world from itself.

Take Europe as an example. Europe has been careening toward crisis for two years now. The European Union has repeatedly applied band aids in attempts to correct the underlying problems, but those band aids have never been enough.

Now we are in a situation where two of Europe’s problem nations, Spain and Greece, both have unemployment at over 25%. These are simply depression levels. And even supposedly, relatively healthy Britain now has unemployment at record levels.

In today’s interconnected, globalized economic and financial system, there is simply no way that the acute problems in Europe can be limited to Europe. Make no mistake, their presence will be felt here in the US, in our financial markets. Many US companies are dependent on overseas markets for sales of their goods and services. Others are dependent on overseas markets for equity ownership stakes.

The continuing European crisis is one which investors cannot ignore. They must diversify into assets that have historically performed well when other assets suffer. Gold investments are ideal for that purpose.

Spain Joblessness Reaches 25%

http://www.bloomberg.com/news/2012-10-26/spain-joblessness-breaches-25-adding-to-rescue-pressure.html

Greek Unemployment Rises Above 25%

http://www.fool.com/investing/general/2012/10/11/greek-unemployment-rises-above.aspx

UK Unemployment Hits All-Time High

http://www.telegraph.co.uk/finance/jobs/9614120/UK-employment-hits-all-time-high.html


Europe–Again

October 11, 2012

Just when many investors assumed that they could forget about Europe, news from across the Atlantic has cropped up again–and that news is not good.

The European Union has supposedly taken action to “solve” the fiscal, monetary and economic crises plaguing Spain and Greece, but the fact is, both countries are still in dire financial straits.

The unemployment report from Greece came in and fully 25% of Greece’s workforce is unemployed. There is only one word that can describe that sorry situation: DEPRESSION.

Meanwhile, in Spain, the news was no better.

Standard & Poor’s downgraded Spain’s credit rating two notches (again) to just one level above junk status. This will raise the cost of borrowing for Spain and is a reflection that past band aids put on by the European Union have not solved that nation’s problems.

What all this means to investors is that, though the financial world is oblivious now, it won’t be able to remain oblivious forever. And though right now investors are not seeking the safe haven of gold due to the European crisis, we can be sure that eventually they will.

It is best to accumulate safe havens BEFORE everyone else does!


REPORT: Nuclear Iran would ‘double’ oil prices, cost millions of U.S. jobs…

October 10, 2012

Part of what we try to do at Coin Trader and on the Mind Your Money blog is to provide advance warning of external factors that may not seem to be investment-related at first glance, but which are in fact absolutely vital for investors.

One of the issues that we are following closely is the simmering conflict over Iran’s nuclear program.

We do not examine this conflict from a political standpoint, but rather strictly from an economic and investment standpoint. No matter what your view of Iran, its nuclear program, Israel or a possible US response, you MUST NOT ignore the possibility that a crisis could erupt over Iran’s uranium enrichment activity.

That means you must prepare ahead of time by diversifying into gold investments, something we deal with regularly.

But what types of conditions are likely to result from a crisis involving Iran?

Obviously, no one has a crystal ball, but a new report issued by a bipartisan association of national security and economic experts predicts extremely chaotic conditions. Here are a few of the highlights:

• The price of a gallon of gasoline in the USA could climb by an additional $2.75 per gallon

Inflation would increase to 5%, far above current levels.

• The US would be plunged into a recession, with 5 million jobs being lost.

In other words, an Iran armed with nuclear weapons would touch off a bout of 1970s-style stagflation.

Investors must be aware that in the 197os stagflation, the price of gold tripled and the stock market plunged by 45%.

http://freebeacon.com/the-economic-consequences-of-iranian-nukes/


Gold Hits 4-Month High On Predictions of Fed Stimulus

August 23, 2012

The price of gold has surged to a 4-month high in the wake of the release of Federal Reserve Open Market Committee minutes indicating that the Fed is nearly ready to turn on more stimulative policies in an attempt to boost economic activity in the US:

http://ca.news.yahoo.com/federal-leaning-toward-more-stimulus-180827376.html

The policymakers at the Fed are clearly frustrated at the slow pace of economic activity and chronic high unemployment in the US and are also no doubt under intense political pressure from the Obama administration to act soon to boost Obama’s re-election chances in less than 3 months.

What all this really adds up to, however, is a further undermining of the US dollar. These types of stimulus packages have been largely ineffective at boosting economic activity and lowering unemployment to acceptable levels. But one thing is undeniable: they increase the supply of US dollars in a world that is already awash in dollars. This has the impact of reducing the value of the dollar.

That is why investors are moving back into gold in a big way. Gold has historically had a negative correlation with the dollar, so policies that undermine the value of the dollar tend to boost the price of gold.

Because at this point we only have an indication that the Fed has intentions of instituting such stimulative policies, investors have a window of opportunity in which to act. Buy gold investments now, before the dollar declines in earnest and gold prices are much higher.

 


Unemployment: America in Denial

August 3, 2012

The US economy is in trouble, though many Americans, and much of the mainstream media are in denial.

The latest unemployment numbers are out and they show another slight increase, to 8.3%. The trend has been headed in the wrong direction for a few weeks now.

The economy is NOT improving and sooner or later this is bound to be reflected in the financial markets. There is just no scenario in which the stock market and real estate market can be healthy while the overall economy is sick.

Government statisticians tried to put a good face on the unemployment news by coupling it with the tid bit that the economy added 163,000 jobs in July, the highest number in some time. But that figure has to be taken with a grain of salt because in each and every month so far in 2012 that jobs report has had to be revised downward in the following month.

In other words, someone, somewhere in the halls of government has their finger on the scale. It is just not reasonable to believe that it is just a coincidence that the employment figures can possibly be wrong in the same direction 8 months in a row.

Yesterday CNBC ran a story that reinforces the contention that the US economy is actually already in a recession and we are just are in denial about it. The unemployment picture is actually much worse than it appears…

http://www.cnbc.com/id/48468748

Investors may be bewildered by this news, but they need to shake off the cobwebs and realize that this all adds up to eventual very bad news for the financial markets, the stock market in particular. Meanwhile, inflation is making a comeback. Fuel prices made a surprise jump in July and drought is putting upward pressure on food prices across America.

This is building a picture that looks very much like STAGFLATION. Wise investors need to protect themselves against stagflation and the way to do so is to look to history.

The last time stagflation was a serious issue in the US economy was back in the 1973-75 time period, when the stock market fell 45% and the price of gold tripled…