Price Update
If you own bullion or have been waiting to establish a position, the immediate question is straightforward: do the latest price falls weaken the case for precious metals, or have they created a more attractive entry point while the larger economic risks remain unresolved? Our view is that the pullback has not removed the reasons […]...
Gold and silver came under renewed selling pressure on Thursday as concerns over artificial intelligence investment, rising energy costs and geopolitical tensions unsettled global financial markets. Despite a sharp decline in technology shares and increased demand for US government bonds, precious metals failed to attract the safe-haven buying that investors might ordinarily expect during periods […]...
Global bond markets are sending a message that investors should not ignore. Government borrowing costs across the United States, Australia, France, the United Kingdom and Japan have climbed to levels not seen in decades, placing renewed pressure on households, companies and governments. Normally, rising bond yields are considered negative for precious metals. Government bonds provide […]...
In Part One of this series, we examined five warning signs that could leave global financial markets increasingly vulnerable to a global economic collapse. Instability in the yen carry trade, rising sovereign debt and bond yields, concentrated equity markets, weakening global property prices and persistent inflation may appear to be separate issues, but they are […]...
Over the past three decades, Australian investors have endured the dot-com collapse, the Global Financial Crisis (GFC), the Covid 19 Pandemic market shock and numerous smaller corrections. Each arrived under different circumstances and the event that ultimately triggered the sell-off was generally easier to identify in hindsight. Financial crises rarely become destructive because of one […]...
The yen carry trade has survived because one fundamental condition has persisted for decades: money has been comparatively cheap to borrow in Japan. Investors could borrow yen at low interest rates, exchange those funds for foreign currencies and invest in higher-yielding bonds, equities and other assets overseas. As examined in the first part of this […]...
