A tight trading range seen overnight in the price of Gold as the market awaits the minutes from the last Fed meeting to be released today at 2pm EST.
The Dollar Index is lower this morning approaching the 93 level once again helping Gold stay on the high side of its most recent trading range.
U.S. Air Force B-1 bombers flew over both coasts of South Korea overnight, sending a message to Kim Jung Un that we are right here ready to act if necessary. Some military experts say something has to done, because as time passes North Korea gets closer every day to having the ability to deliver a nuclear weapon to our shores. They claim if we wait till then, it will be too late.
ETF Gold investors are taking a wait and see posture, as no significant movement in holdings have been seen in the last couple of days.
It’s upsetting to me to hear the President say, “if congress cannot come up with a plan to repeal and replace Obamacare, then just let it implode.”
Easy to say Mr. President, but we must stop and think about what happens to those people who have no means or ability to obtain health coverage in their states? Where do they go and who do you turn to if you are in need of medical care? How about we take away healthcare for everyone on Capitol Hill? Then we will see how fast something gets done.
This country needs to improve our healthcare system to deliver quality care at a cost everyone can afford. If this is not tackled now, along with addressing the crumbling infrastructure situation, many lives may be lost.
Just one life is too many. Just look at Washington. It’s such a SAD STATE of affairs when all the effort and all the talk 24/7, is about corporate tax breaks. There is nothing for the middle class and I mean nothing. A big $1,000 dollar tax break. Less than twenty dollars a week. Big deal.
The cost of healthcare will increase our nation’s debt exponentially and no one knows what the cost will be to repair the crumbling bridges and tunnels .
Some analysts say replacing Obamacare will add 500 billion to the country’s debt. The cost of Infrastructure on the federal level could add another 500 billion to our country’s debt. And these are only estimates. No one really knows the real cost. But to get a handle on these types of expenditures, let’s look what it costs today to pave just ONE mile of a four lane highway – $502,000 dollars. Currently, the U.S. has 4.12 million center-line miles of roads, providing 8.66 million lane-miles for highway travel, according to the Federal Highway Administration. My calculator just blacked out when I tried to figure out the cost to pave those roads, not to mention the cost to repair or replace our bridges. Just one example is the cost to replace the Tappan Zee Bridge in New York. They just opened the new bridge and the cost was a mere 4 billion dollars. How many bridges in this country are in dire shape and need to be replaced?
Drain the swamp? Looks like Washington is adding more sewer water to it every day.
While we, as some have put it, are running a day care center in Washington, paying no attention to the things that matter most, China continues to take a different direction, adding to its gold reserves.
It seems to many in the industry, that within three years China will be in position to link Gold to their currency, the “Yuan.” There is widespread belief that China isn’t accurately reporting their gold holdings in the meantime, accumulating inventory at non-reportable locations, keeping it off the radar.
So the question remains, with our uncontrollable debt and increasing costs of entitlements, is there a possibility we can have another financial crisis?
And they want to cut taxes?
In a couple of years, will China’s Yuan become the world’s reserve currency? Will China and the U.S. get involved in a currency war?
In the future will the price of gold be quoted gold in “Yuan” terms?
So many questions, but NO answers.
Have a wonderful Wednesday.
Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.