In the Blink of an Eye, Gold Spikes Higher

GPD and PMI car anolog

In my interview earlier this week with Kitco News' Daniela Cambone , I told investors that when gold is ready to reverse course, we could see it happen in the blink of an eye!

That’s exactly what took place on Friday morning.

Gold prices moved up close to 2 percent today, and gold stocks climbed even higher following comments from Federal Reserve Chair Jerome Powell. During his speech at the Jackson Hole Economic Symposium, Powell reiterated the central bank’s commitment to raise interest rates gradually while the U.S. economy continues its strong performance.

Despite the positive moves for the yellow metal today, I remain bullish that gold has much higher to climb.

Really, No Inflation? What About “Fake” CPI?

At the start of the week, CNBC reported that the average price of a Toll Brothers home rose to $851,900 in the third quarter. That’s up from $791,000 a year earlier! Not only that, the cost of a 30-year mortgage continues to rise over the last 12 months, according to the latest data from Freddie Mac. Add in gas at the pump and food, and inflation is up more than 2.9 percent. Yup, no inflation!

Mortgage rates on the rise so far this year
click to enlarge

Pay Attention to PMI and Trade Wars

I want to remind investors to remain cautious while sifting through the latest economic releases and headlines dominating their news feeds. Trade wars continue to escalate at a faster pace than previously expected and manufacturing activity around the world seems to be slowing down, as evidenced in PMI releases. Consequently, a bulk of commodities are still feeling the pressure.

As I’ve written about many times, the purchasing managers’ index (PMI) is an important forward-looking economic indicator that we closely monitor to make sense of the world economy. Manufacturing PMI gathers data such as global output, new orders, exports and prices. GDP, on the other hand, is important, but more like looking through your rearview mirror.

GPD and PMI car anolog

On that note, I want to leave all of our loyal shareholders and readers with this special commentary as we head into the weekend. I hope you enjoy it.

The 5 Dimensions of a Rich Life

Studies show that mindfulness and having an attitude for gratitude is important in all aspects of life. One way to increase gratitude is to regularly take stock of not only your finances, but the other dimensions of your life as well. This includes relationships with family and friends, personal and professional achievements, and ways in which you give back.

5 dimensions of a rich life

During my recent trip to the Oxford Club’s Private Wealth Seminar in Whistler, I was reminded of this very topic. I had the privilege of hearing from numerous inspiring and intelligent investment professionals during the event, including my good friends and chief strategists at the Oxford Club, Alex Green and Marc Lichtenfeld.

One of the presentations, however, really stood out to me. The topic included the five dimensions to living a rich and fulfilling life, a theme also covered in Alex Green’s book Beyond Wealth.

The key? Being “rich” isn’t all about money.