Presently there is unprecedented volatility in the International market place with global equities having the worst start since the great depression (1928) in January only to see a rally in the markets through March. Commodity prices have experienced the same volatility. Interest rates are at historical lows and in some countries they are even negative (effectively taxing peoples savings) and Global economies are still experiencing sluggish growth is any at all.

I am a firm believer that gold and silver represent an alternate asset class that can provide the public with a hedge to the risks we presently face. Silver and Gold should be a part of every long term investment portfolio, it is easily converted into cash, it typically out performs most asset classes when markets tumble, it is USD denominated and therefore allows you an instant hedge against the AUD and most importantly it appreciates over time.

In the near future we will be focussed on providing our customers with more information, services and products that provide flexibility for customers to invest or trade in physical gold and silver.

Economics

The US Fed seems to be grappling with the problem that the US Dollar seems to have become the worlds de facto currency and by default the Fed has become the world’s central bank. This means that the Fed is torn between its domestic market objectives and international ones. This seems very reminiscent of 1927. Yellen has pointed to International growth risks such as the economic slowdown in China, depressed commodity prices and Europe which is my view is a real basket case.

This concern has led to Yellen using the words “ caution is especially warranted” in relation to raising interest rates. As a result we have seen the March rally in Oil prices and equities. As the markets bizzarely cheer lower interest rates in the expectation they will stimulate the economy and markets. However, the reality is that interest rates typically decline when economies decline and increase in times of economic booms.

With this in mind there exists the real possibility that history may repeat itself. In 1927 the Fed lowered US interest rates to try to deflect capital inflows and to help bail out Europe. Unfortunately the opposite happened and capital poured into the US despite the lower rates (something we call today a “risk on trade”). As capital poured into the US, the US share market almost doubled which lead the Fed to aggressively increase interest rates to help prevent the crisis they helped to create. This all led to the 1931 sovereign Debt crisis and those declines led to political chaos.

About the Author, Scott MacRae

Scott lives between his home in Europe and Australia, and spent the last seven years living in Asia.  He has a wealth of experience in commodities from agricultural through to metals and has been involved in the financing, marketing, trading and operations of various commodity businesses.

Living and working around the World provides Scott with the connections and access to information regarding the Global economy, investment and commodities markets.  He has a Law Degree from the University of Sydney

To contact Scott email scott@goldbullionautralia.com.au

Keep informed of live spot prices, news and specials.

If you would like to stay informed about up to the minute pricing, market news and specials, subscribe here.

Live Prices

Gold

Silver

Gold

2,561.29/oz

Silver

29.68/oz

Gold

2,561.29

Silver

29.68

Latest Post

Where Are We Headed: Inflation, Asset Markets, Currencies, Commodities & Precious Metals

China’s Imports Shift Platinum Into A Global Deficit, Presenting A Conundrum To The Industry

THE CRUNCH IS COMING FOR SOUTH AFRICAN PLATINUM MINES, BY WAY OF WAGE DEMANDS

Interest Rates Rising: A Very Bullish Signal For Precious Metals

IMMENSE SEASONAL BUYING OPPORTUNITY IN GOLD, SILVER & PLATINUM IS UPON US

Mining Platinum Group Metals – Part 2

South African Platinum Mine Supply in Decline as Demand Gains Significant Traction – Part 1

Auctus Metal Portfolio Overview – 1 November 2021

UK Hydrogen Strategy 2021 Platinum Long-Term Demand Moves Ever Higher

WHY HAVE PRECIOUS METALS UNDERPERFORMED IN 2021?

MASSIVE EXPLOSION AT ESKOM’S NEW POWER UNIT ‘MEDUPI’

Understanding Why Precious Metals Are Undervalued

The Impact of South Africa’s energy crisis on PGM mine supply

CYCLICAL TRENDS IN PRECIOUS METALS

WHY METAL FALLS?

Auctus Metal Portfolio Overview – 1 June 2021

Price Volatility & Correction In Platinum Group Metals ( PGM’S ) in May 2021

A CASE FOR PLATINUM

THE SLINGSHOT SETUP IN PRECIOUS METALS

PLatinum (Pt) UPDATE

PRICE FALLS IN METALS

The Hare and The Tortoise Story

Immense Seasonal Buying Opportunity in Gold, Silver & Platinum Is Upon Us

The impact of the COVID-19 pandemic on South African PGM supply, on global supply and ultimately on the price of platinum, palladium and rhodium. – Part 3

The impact of the COVID-19 pandemic on South African PGM supply, on global supply and ultimately on the price of platinum, palladium and rhodium. – Part 2

The impact of the COVID-19 pandemic on South African PGM supply, on global supply and ultimately on the price of platinum, palladium and rhodium. – Part 1

AUCTUS Company Portfolio Models Overview as of 1st June 2020

Gold and precious metals are among the safest investment assets during a global crisis

Investing in and Retaining a precious metal portfolio during the COVID-19 pandemic

How Cheap is Gold as of April 2020

Anglo Platinum

Platinum – Supply and Demand

Platinum price to rise as “climate change” pressure gains traction

David Davis

Auctus Metals Breaks+50% Annual Net Returns for Year 2019

Big Profits in Buying Gold, Silver & Platinum in December

What’s the difference between and optimist and a pessimist?

Our Clients Portfolio Performance Spectacular Chart Performance – 3 charts

Silver Technical Picture Price Outlook

China Devalues their Currency

Palladium – the quiet achiever of the Precious Metals Portfolio

Diversification within Precious metals – The Potential is Incredibly Compelling

Why Silver is seriously Bearish

Forecasts are now becoming mainstream plus platinum

Historical Precedent in Silver & Gold

The perfect storm slowly starts to hit and can no longer be ignored

A Momentum Lead Capitulation in Platinum, A Major Triple Bottom Develops?

Black swans darkening the sunlight out from view

WHAT IS IT ABOUT PGM’s (Platinum Group Metals)?

Have you considered Rhodium?

Historical Investment Opportunity Presents Itself

Bullion Banks ARE Now the Most Bullish on Silver in Decades!

A Confluence of Events in Silver Are Coming Together

A Confluence of Events Leading to Silver Price Rise

We are currently at a 1 in 5-year event

DEBT CRISIS, CRYTOCURRENCY, PROPERTY AND A MONEY TSUNAMI

First Bullion Bulletin – Update with David Mitchell

Porsche Gold Rush: Special operation for Porsche on the streets of London

METALS, STOCKS & BONDS

Happy New Year – what is happening at GBA and precious metal investing

HOLIDAY TRADING

NOT ALL THAT GLITTERS IS GOLD

This Week’s Specials

PERTH MINT YEAR OF THE DOG 2018 GOLD & SILVER BULLION COINS

The Biggest Opportunity in Precious Metals Since Late 2015, and the Last Chance at These Prices ?

Please tell us what you think of the new GBA website!

X
2,561.29
29.68