Inflation rises, industrial production and housing starts are better but wage growth stinks
Chris Temple kicks off today by looking at a number of data points released today and discussing how they impact the the overall economy. We had inflation rise the most in 3 years, industrial and housing starts were better than expected but wage growth disappointed. Overall the average American is just muddling along much like the economy. Of course you can’t have this discussion without addressing the Fed and what they might do…
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Maybe a Freudian slip on Cory’s part…as one of the subjects we discussed was the hosing American workers get these days.
Sticks = Stinks, too —
Al, Doc, and the gang, what kinds of physical gold and silver do you recommend for accumulators? Eagles, Maple leafs, bars, 90%, semi-numismatic etc. is there an advantage of one over the other? Thanks.
Pardu, I’ve been at owning metals since 1976,both gold and silver again in 1997 thru 2003, and again strictly silver again since Oct 2015.
Starting out right now, I would say 90% quarters-dimes. Of course it depends on on how much liquid wealth is available. Personally, I believe between 12.5% – 28.5% of liquid assets should be in physical, depending how much liquidity you have.
I don’t think you can go wrong with Gold or Silver Maple Leafs for coins, because they are .9999 Silver and widely recognized. American Eagles are a fineness of .9167. Gold or Silver bars stamped from reputable dealers or mints are good.
Some claim the numismatic older coins are better because they may be exempt from a confiscation if it was to happen again. Who knows? Collector and rare coinage is tricky though, because many people have been ripped off or overpaid. Go with Graded coins if that is the direction you head down.
As for the junk silver, you get way more silver for the fiat paper expended, but some don’t put it on the same level with .9999 Silver. I’ve heard arguments both for and against it.
I have friends that often pick up silver off Ebay for a nice arbitrage as the spot pricing swings, so that’s another angle, but watch out for the shipping charges.
Shop around different metals dealers that have low margins and fees and low/free shipping.
Thanks for all the input to my question. I have tried to diversify by having several different kinds such as silver eagles, silver maple leafs, Uncirculated Morgan dollars, British BU gold sovereigns, and gold eagles. So, it sounds as though I am on the right track.
Ronald, consider that you are that 1% that owns anything precious outside of jewelry. I would hazard a guess that one in a thousand has bar, round or coin in excess of $1,000.
I think the Canadian coins are the best: Nearly impossible to counterfeit as of 2015/2016. And now DNA system ….
Neat. I hadn’t heard of that bullion DNA, but that’s a cool technology.
Chris is right. Yield is what people need. Price discovery is made impossible with Fed intervention in the true market place.
I just do not understand how the S&P is staying up there. It is exhausted. No energy to go higher but mysteriously not dropping. Just stuck there.
“Mysteriously” is the right word, Bob — especially in light of the figures from Trim Tabs I’ve been referring to about significant outflows from retail stock mutual funds and ETF’s
I am sat on the sidelines until this thing does at least some kind of correction that can be called a correction.
I am not chasing oil. I am not chasing gold. I certainly am not going into this market.
Gravity always wins out with the apple in the tree.
Bob UK, I chased for the 1st time yesterday in 12 years, Golden Arrow Res, based on the story in 2 audio/ video I listened to Sunday pm. Technicals stunk,RSI near 80, but I piulled the trigger and was up 16+% today.
Buffet and Goldman caused a big short covering rally yesterday and today almost all the gains were lost. The market is having trouble holding the 50 day average.
No worries. When the junk bonds collapse ( coming soon ) the S&P will follow. Watch JNK next week or maybe the following week. It’s toast.
Lets hope so. I’ve been holding the inverse etf of junk for a month.
Al, the twelfth of never, Johnny Mathis, the late 50’s
Hosing? LOL
Good start to the show today!