Who doesn’t like ice cream? On a recent trip to Paris we spent the early part of an afternoon on the Left Bank, walking along the eclectic Rue de Seine. If you want to get a feel for how Paris used to be, then Rue de Seine is for you. Standing at the corner where Rue de Buci meets Rue de Seine, outside Bar du Marche, a nice looking gentleman asked in a very friendly tone if he could help me find something (was it that obvious?). In response I asked if he could recommend an ice cream shop and he pointed us to Grom, a perfect place to get a crème glacee between lunch and a late … [Read more...]

One of the lines in the chart below is the purchasing power of the USD, and the other is the purchasing power of an ounce of gold. Both series are rebased to one in 1913, the year the esteemed Federal Reserve was created. Since the Fed was created, the U.S. dollar has lost 96% of its purchasing power while gold has gained purchasing power. That’s no coincidence. Gold is a store of value. A wealth preservation vehicle. Gold won’t make you rich, but it won’t make you poor either. Gold is a currency. It can’t go bankrupt, lose its value because of poor management, accounting fraud, … [Read more...]

After President Trump's comments yesterday about the country struggling to compete with the dollar as strong as it is, and separate positive statements he made about regularly dovish Fed Chairwoman Yellen, gold and silver prices jumped. Will a "weak dollar" Trump administration be a boon to gold investors? Carla Mozee writes at MarketWatch: Gold, silver and prices for other metals leapt Thursday, bolstered as the U.S. dollar was shoved lower after U.S. President Donald Trump said the currency has been trading at “too strong” of a level. June gold GCM7, +0.83%  advanced $12.10, or 0.9%, to … [Read more...]

In a survey of 21,000 people from around the world conducted by the Wharton School, Switzerland has emerged as "The Best Country." This is the second year of the survey, and the first time Switzerland was included. Last year's winner, Germany, was pushed to fourth place, with Canada and the UK taking slots 2 and 3, and Japan taking 5th. The U.S. came in seventh of the 65 countries polled. The Local writes: “Switzerland debuts as the world’s 'top' country, in part because of its progressive social systems, protection of human rights and business-friendly environment,” said the ranking … [Read more...]

During the Presidential campaign Trump promised to get tough on trade. Mexico was the focus of much of his rhetoric, but that isn't the only trading relationship the new administration is looking to renegotiate. The FT reports that the Trump administration wants to have a sit-down with Germany on the country's massive trade surplus. Germany's membership in the euro-area keeps its currency undervalued and provides it with a meaningful trading advantage. If the Germans brought back the Deutsche mark, most economists estimate it would appreciate significantly vis-à-vis the euro thereby … [Read more...]

After selling-off as interest rates spiked following the election, gold has made something of a comeback in 2017. Gold is up over 9% YTD compared to about a 6% gain in the S&P 500. The rally in gold seems at odds with the prevailing sentiment in the stock market. Stock market investors are bullish. The Dow has been up for ten consecutive days. Gold and stocks don't often rise in tandem like they have over the last two months. Is gold trying to tell us something? Is calamity on the horizon? Are rising gold prices a signal that goods inflation is about the rear its ugly head? Is the … [Read more...]

During the last decade or so, the world's wealthy have been content to sit on their cash and wait out the low rates and uncertainty. Swiss banks are beginning to see an end to that strategy, and all that cash could once again be put to use. Ralph Atkins writes: A striking feature of global financial markets since the crises of 2007 and 2008 has been the propensity of many wealthy private investors to sit out the turmoil, holding cash in bank accounts rather than in riskier assets. Might that be about to change? The word among bankers in conservative Switzerland - the world’s largest centre … [Read more...]

The FT explains here that China has managed to stem the flight of capital from the country with tighter capital controls, but this is likely more of a Band-Aid than a solution. Capital that wants to leave China will eventually find its way around tighter controls. Look for China's currency, the yuan to continue to weaken as a result. Foreign property investment by Chinese companies plunged by 84 per cent last month, as Beijing’s capital controls choked off the flow of foreign acquisitions. In an effort to curb capital outflows and ease downward pressure on the renminbi, Chinese regulators … [Read more...]