Money Talk Daily

Posts Tagged ‘the economy’

This is historic. For the first time ever, gold has put in a weekly close in excess of $1,000.00 per ounce.

I recall my old finance professor at Washington University in St. Louis telling our group of eager business majors to watch the gold price because it is always telling your something. He also said that typically governments would prefer everyone ignore the price of gold. That was back in 1977. So what is gold telling us now?

Now there’s a question that stirs up all sorts of debate. At the risk of getting into the middle of it, I will offer as my opinion that the price of gold is telling us the following:

• Vital parts of the economy – especially the banking industry and various derivative instruments – are not fixed.

• Price inflation is a real possibility at some not too distant point.

• Foreign governments that are large holders of U. S. financial assets (as in China, among others) are displeased with the way the U. S. Government is managing its financial affairs and may be considering unilateral economic actions. (Note that China recently admonished its citizens to start stocking up on gold. Why do you think that is?)

• There is a general nervousness about the solvency of financial institutions.

• People are learning to read charts and have noticed the general direction of gold bullion prices over the past several years.

• There is a sense that geopolitics remain very unstable.
Now what you do with this information, if anything, is entirely your business. And, anyway, those are just my opinions and observations.

The only thing I might suggest is that you heed the words of my old finance prof, and just keep an eye on the royal metal and try to hear what it’s telling you.

Craig Bennett

So Reuters reports that consumer sentiment is at a four-month low. That comes as no surprise. It’s clear that we are not being fooled by the happy talk that comes from the government or various media outlets. People hear about friends losing their jobs and are concerned about what’s coming next. We question whether various programs are really helping the economy get back on its feet. And we are unsure about whether anyone has a really workable solution to what is troubling the economy.

But the purpose of this blog is not to sit and stew over what might happen. We realistically look at the situation and explore ways to succeed financially regardless of what comes down the pike.

Have you looked at your spending and found ways to reduce your expenses without having your lifestyle take a hit? (We have a free ebook you can download just for that purpose – www.savemoneyathomereport.com )

How about the best form of “income insurance” – adding an extra stream of revenue? We want to help with that as well.

We cannot control the economy. We can watch it and control our responses to it. And that’s what we plan to do. Are you with us?

Craig