If there were any reason to panic about the state of Britain’s public finances, we’d see it in the bond markets. And we can’t, because it isn’t there.
A panicking bond market is one where interest rates rise. That’s because investors demand more compensation for buying “risky” bonds. But instead, British government bond yields are falling. Ten-year gilts, or British government bonds, now carry a yield of only 1.1%. That’s well below even the yields of equivalent U.S. Treasury bonds. Inflation-adjusted gilts offer negative post-inflation yields. If the bond market is worried about British finances, it is doing a very good job of hiding it.
And little wonder.
Britain’s national debt is just over 80% of gross domestic product, well below levels that would be considered dangerous and hard to sustain. And that’s not all. More than a quarter of the debt is owed to the Bank of England, which bought up gilts through a policy of quantitative easing following the financial crisis. And the Bank of England, in turn, is owned by the government, which therefore owes that money to itself.
Set that aside and you find that the national debt is closer to 60% of gross domestic product. If the British government has to pay 1.5% interest on 60% of GDP, that comes to less than 1% of GDP in annual payments. There is no crisis at all.
Rounding out the list of things Chancellor Osborne wants us to ignore, nearly all of British gilts are in the hands of domestic investors. So the current debt levels couldn’t even cause a sterling crisis, let alone a debt crisis.
Also see: Brexit campaign devolves into racism and xenophobia
You can make a strong case that the U.K. government should be borrowing and spending more right now, regardless of what happens in the referendum.
Osborne and his fellow Remain campaigners have relied almost exclusively during the past six weeks on trying to scare British citizens into voting
First thing this morning she was shot and die around noon our time, causing Brexit to be postpone, right when they announced her death gold crashed and is still going down, here are the headlines from marketwatch U.K. Lawmaker Jo Cox Is Murdered, Silencing Brexit Debate
June 16, 2016 — 11:17 AM CDT
Updated on June 16, 2016 — 1:52 PM CDT
its over 300,000 right now, looks like no one wants to get caught having to buy high price gold, good luck everyone
The news on Platinum is out, Platinum is cheaper then gold and this has only happen 3 times in a 100 years, once they see this they will dump gold for Platinum, and the best part is Platinum known as the rich man`s gold is under a thousand an oz and not even i noticed, good luck,, GOLD
06/14/2016 17:01 1285.50 1286.50
06/14/2016 17:01 974.00 979.00
All that glitters is not gold. Especially when another, even more precious, metal is trading at a historical discount to gold.
Many investors are familiar with the gold/silver ratio, or that recently that ratio was saying it was time to buy silver. But platinum, the "rich man's gold," has also seen its price fall relative to gold's. In fact, platinum is now cheaper than gold -- something that has only happened a few times in the past 100 years.
What this means is that platinum prices are probably going to move up over the next few months.
Platinum is the world's third-most traded metal, and there is a lot less of it than either gold or silver. It's so rare that it's been somewhat seriously suggested that asteroids be mined to find more.
Platinum is also arguably more useful than gold. It is used for everything from jewelry to LCD monitors to dental equipment. The biggest source of demand for platinum is the auto industry. It uses 40% of the global supply, mostly to make catalytic converters.
Time to get into some retail stores that took a beating since retail sales are up, here is the news from Marketwatch, We’ve gone from investors lamenting a lousy first-quarter earnings season, especially for the retail sector, to celebrating two consecutive months of better-than-expected growth in retail sales.
Tuesday’s report on retail sales in May, after an even stronger report for April, adds to evidence the U.S. economy has sped up this quarter, despite a shockingly weak jobs report for May.
It also suggests many retail executives are likely to change their tone when they next report earnings. So we looked at which retailers were winners and losers in several categories during the first quarter and over the past 12 months.
Using data provided by FactSet, we examined the S&P Composite 1500’s retail companies and restaurants and added total returns through June 13 for their shares.
wti is going up not down, Oil futures edged up in electronic trading Tuesday after the American Petroleum Institute reported that U.S. crude supplies fell by 3.6 million barrels for the week ended June 3, according to sources who reviewed the report. Analysts polled by S&P Global Platts forecast a decline of 3.4 million barrels for crude inventories. The closely watched Energy Information Administration report will be released Wednesday. August crude CLQ6, +1.61% was at $50.43 a barrel in electronic trading, up from the contract’s settlement of $50.36 on the New York Mercantile Exchange.
That was an issue to help gold if they left, and now it looks like they are going to stay,,,,,,,, A series of new polls showed narrow support for the U.K. to remain in the European Union, pushing the pound higher on Tuesday.
The British currency erased all of its gains from the prior day as two new polls showed voters are leaning toward a vote for the U.K. to remain in the European Union when they head to the polls in a long-anticipated referendum, dubbed Brexit, scheduled on June 23.
A spate of conflicting polls released over the past week have led to gyrations in the pound as the outcome of the referendum appeared too close to call.
The pound GBPUSD, +0.7341% traded at $1.4571 in recent trade, compared with $1.4455 late Monday in New York.
Anxieties about a possible U.K. exit from the European Union have had a wide-ranging impact on currency markets.
Some market strategists have cited the coming U.K. referendum—which is slated to occur a week after a widely watched meeting of Federal Reserve policy makers on June 14-15—as one reason the U.S. central bank might be reluctant to raise rates this month, which has helped to con
We all know rates will go up, but it seems like to many are saying i have to get in the last gold pump, which happen last week when GLD jump 3 dollars a share in one day and some investors have to lose by buying now as others dump slowly. Remember not even our parents got home loans with cheap rates like the young people did in the last 6 years.
Hello Trader, the pop in FXI today was probably caused by the 200 billion trade deal China and Russia signed last night
Gold futures settled at a more than three-month low on Thursday as consensus for an imminent interest-rate hike solidified on the back of comments from a Federal Reserve official who stressed the need for an early rate increase.
Dallas Federal Reserve Bank President Robert Kaplan reiterated his belief that the Fed should move quickly to raise rates as the economy is showing signs of sustained recovery while inflation is accelerating, Reuters reported.
June gold GCM6, -0.14% fell $2.10, or 0.2%, to settle at $1,209.80 an ounce on Comex, its lowest settlement since Feb. 16.
“Gold prices have been pressured by the prospects of higher rising rates and a rebound in the U.S. dollar. The Fed has been hinting that they would like to hike rates in June or July if economic data come in favorable,” said Ken Ford, president of Warwick Valley Financial Advisors.
Investors also interpreted the decision by the European Central Bank, which decided to stand pat on its monetary policy, as favoring the greenback as comments from ECB President Mario Draghi highlighted the Fed’s impact on the dollar, according to Peter Hug, global trading director at Kitco Metals Inc., in a report.
A tighter monetary policy tends to boost the U.S. currency and dampen demand for the yellow metal, which is priced in dollars. Higher rate is also negative for precious metals, which don’t offer interest.
The ICE dollar index DXY, +0.12% was fractionally higher at 95.54.
“Shifting market sentiment toward a Fed rate hike in June or July has lifted the U.S. dollar and pressured gold prices in the month of May. This linkage may continue for some time,” said analysts at U.S. Bank Wealth Management in a note.
U.S. economic data released on Thursday were being read as reaffirming mounting expectations that the U.S. central bank is bracing to raise interest sooner than later, as the economy continues show steady, albeit sluggish, expansion.
A reading of private-sector employment supported the theme of a g
and how would the boilerroomking like you know that? You might be jealous because you cant get good help with knowledgeable people, anyways your work roday in that boiler room is done today, no over time for you, you next stop is 12 hours in a sweat shop
Mike is that you? Also i am still short the miners, WSJ put out that garbage that gold was in demand, i posted on the GLD board, India bought 74% LESS gold the first 3 months this year then last year and even China is buying less. I got the information from the world gold council, the run up was a total joke and manipulated in my opinion. Last couple of days gold goes down and miners go up, that cant last long before the selloff comes, good luck and good seeing you again
The sudden surge in the price of precious metals has resulted in a decreased demand for gold in Asian markets. India and China have been competing to be the world’s biggest gold consumer. According to World Gold Council data, India’s domestic demand was 848.9 tons in 2015. The nation imports almost all the gold it consumes. Notably, gold is purchased heavily during the festive and wedding seasons.
But India’s gold imports saw its third month in a row of slack in demand. Compared to the 84.3 tons it imported during the last year, 2016 purchases are at 22.3 tons, which represents a significant drop of approximately 74%. The world’s second-biggest user of gold imported roughly 16 tons in March. India’s gold imports in March have thus slumped by 80.5% from one year ago.
well the good news is i am up and you bought NUGT after i bought DUST and you are down, wait you sold NUGT for a profit even though you are on the GLD board say GLD will hit 117 and gold will go to 1240, it takes very little to push up gold to get retail investors to buy while they start dumping mining stocks, most every mining stock is up over 100% while gold dropped 6.4 percent from its high, so keep pumping gold and the miner stocks so others can dump on you