Inflation Just Spiked ~ Here Are 3 Reasons Why a Gold Investment Makes Sense Right Now.
“Gold, Mr. Bond.”
Americans were already feeling squeezed by rising prices, and now they have fresh data to confirm it. After months of relative stability, consumer prices are climbing at their quickest annual pace in nearly two years, surprising both economists and households already stretched by elevated borrowing costs. According to the latest inflation data, the Consumer Price Index rose at a 3.3% annual rate in March, up sharply from a rate of 2.4% the month prior.
That jump was even more pronounced in terms of energy costs, which surged in the wake of the Middle East conflict that has choked off crude oil supply through the Strait of Hormuz. That resulted in gasoline prices alone jumping nearly 11% from the month prior. That, in turn, pushed inflation significantly higher overall, creating ripple effects across transportation, food and everyday goods.
For consumers, that means a renewed squeeze on purchasing power. For investors, though, it raises a different question: how to respond when inflation proves more stubborn than forecasts suggest. And for many, that conversation inevitably turns to gold, and for good reason. Continue reading
We are all concerned about the many problems we face today: inflation, affordability, a world at war, the list goes on. That will all be irrelevant if the United States goes bankrupt. Make no mistake, that is where we are headed if we continue our current path.
The U.S. government added $1.2 trillion to the national debt over the past six months, borrowing $163 billion during March alone, the Congressional Budget Office reports.
Tariffs rarely appear on a grocery receipt or electronics price tag, but economists say American households are increasingly paying for them anyway. A growing body of research from federal budget analysts and university economists suggests that the current U.S. tariff structure is quietly raising the cost of everyday goods, adding roughly $1,500 per year to the typical household’s expenses. As tariffs expand across a wider range of imported products, the economic impact is becoming easier to measure and harder for families to ignore.
The problem with an increasing debt burden is that it costs more to maintain it: This is precisely the issue with which the U.S. Treasury is wrangling at present. As total U.S. national debt ticks over $39 trillion, the interest payments on that value are eye-watering: $529 billion for the first six months of the current fiscal year.
The ceasefire agreement between the U.S. and Iran propelled gold and silver prices to nearly two-week highs. Silver outperformed gold, with spot prices surging over 6% to $77.64 per ounce, while gold rose over 2% to $4,836 per ounce. This divergence is attributed to capital rotation from gold toward industrial metals like silver, driven by easing supply chain and energy concerns and expectations of economic recovery. However, silver’s higher volatility means it could retrace faster than gold if negotiations fail.
Oil prices plunged and U.S. stock futures jumped after President Donald Trump held off on his threat of devastating attacks on Iran. U.S. crude oil futures fell more than 15%.
It’s no secret that the price of gold has been volatile over the last year or so. Gold’s price trajectory went from reaching new record highs month after month to declining and then surging back, with even more ups and downs in between.
Low – and Middle-Income American families, and small businesses, accounting for well over half of our country’s population, paid out a disproportionate share of their incomes to the government due to IEEPA Tariffs recently struck down by the Supreme Court. Total payments amounted to roughly $175 billion. Now these families and small businesses face the prospect of receiving no rebates. Thus, the system is regressive for them on both the front and back ends — the burden of the original high tariffs and now the denial of rebates to compensate them.
The price of coffee is increasing faster than any other household grocery, and it’s not just tariffs driving the surge — bad weather, war and a frenzy of market traders are also to blame for the rise.
Most of the pre-packaged garbage that we are being sold in our local grocery stores is “Frankenstein food”, but even though this is widely known most of the general population just keeps gobbling it down anyway. This is something that I have been wanting to write about for quite some time.
The investment bank’s global wealth management office doubled down on its bullish stance on gold in a note published on Monday. Analyst Wayne Gordon and his team said that despite the recent declines, they think investors should stick with gold as a defensive hedge.
America owed about $75 million in debt from the Revolutionary War. Individual states had already defaulted. Foreign creditors considered the new country a total joke. And domestic bondholders at home were selling their worthless government IOUs for pennies on the dollar.
