In many gold-related articles, the term real interest rate is often used; or in other words, the nominal interest rate corrected for inflation. It is often said that low real rates are favorable for the gold price, while high real interest rates are unfavorable. This is often supported with multiple graphs, correlations, and sometimes even statistical models. But does it make sense theoretically? As we investigate, we will see that it is a half-truth. Low real interest rates create the conditions
... »Gold and Real Interest Rates. Fact, Fiction, or a Half-truth?
August 17 2015
What We Have Learned from the Greek Sword of Damocles
August 10 2015
This week, the Greek stock market reopened after a five-week shutdown. Investors weren’t surprised by the heavy losses on the market that followed. But does that mean that investors have learn their lessons? Will they be able to anticipate at the next sovereign debt crisis in time? Probably not. History tends to repeat itself within the financial markets. But which lessons can you draw from this Greek tragedy? How can you ensure that a looming crisis will not hang over your investments as a
... »Buy Stocks or Gold? The Dow/Gold Ratio
August 4 2015
You have probably heard it before: “Put 25% in stocks, 50% in bonds and 25% in real estate,” or something similar. These asset allocations are almost sacred to some investors. Almost everyone has their own favorite asset allocation. But, even the banks say that a fixed asset allocation is... »
The One Stock That Tells You Everything You Need to Know about the Economy
July 27 2015
It seems too good to be true. Can one stock really tell you everything you need to know about the economy? You wouldn’t have to read the daily newspapers anymore; you could simply take a look at the company’s figures. Which stock am I talking about? And what does it tell us about the state of the economy?
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