NEWS

GOLD-SILVER ratio at 85 the highest since 2007

There is no translation available.

Gold-Silver ratio climbed at the highest point since 1990 (see graph below).
Each time it reached such level, between 80 and 95, the ratio reversed its course due to an economic downturn event.

 

                                 Gold Silver Ratio

                                 From Teletrader

The peaks in 1990, in 2000, and in 2007 corresponded to an economic peak reversal.
Some analysts may argue that the peak could extend its rise from the current level of 82 to higher levels. Sure, but history shows that it has already signalled an historical warning.
Since the Great Crisis of 2008 the ratio fell from 90 to the level of 30, in 2011, corresponding to the end of the Greek crisis.

What does it mean ?

Both gold and silver usually climb strongly in an adverse economic scenario and in periods of trouble. But silver climbs quicker and stronger than gold due to its higher leverage and its higher volatility compared to gold. During these periods of troubles silver reduces its gap with gold.
These great moves are the consequence of irrational behaviour and the run to safe monetary assets.

This article was written for information only. It does not suggest that you should buy/sell the assets mentioned. Before implementing any trade you should consider your risk profile and ask for advice.

Written on October 8th, 2018.

Jean-Pierre Riepe – Swiss ProfilInvest

2018, A TUMULTUOUS YEAR ?

There is no translation available.

End of last year I posted the article that follows. The situation has not changed for the better.

Though indices have just lost a few percentage year-to-date, volatility might regain momentum by the end of the year in view of political irrational decisions, competitive protections, or ostracism.

A cautious and opportunistic strategy along with a diversified asset allocation remain the best way to protect your capital.Please feel free to contact This email address is being protected from spambots. You need JavaScript enabled to view it.

 

2018, a tumultuous year ?

Beginning February, votality regained momentum for the first time since beginning 2016 and stayed high.

What does it mean ?

It means that for an unexpected reason stock markets were surprised and an emotional reaction ensued, like the reaction a human being would have.

What was one of the reasons ?

Certainly, shareholders realised that interest rates would go higher with a global economic improvement. This factor was taken into account in February instead of last year because of euphoria.

In this context, companies with high Price/Earnings ratios suffered the most. The sectors that outperformed in that last parabolic wave were on the top of the negative performance list.

Strong economic factors, especially in Europe, might reassure shareholders in the next three to six months.

But, following this strong alert in stock markets, we suggest to be cautious and opportunistic along the bumpy road in 2018.
We strongly advise clients to get information from trusted sources and to build their own view of the economic cycle in order to act accordingly and to avoid losses by the end of 2018.

Swiss ProfilInvest may help you understanding the current situation in order to give you a projection of the asset classes. If you need it, we would recommend to click on This email address is being protected from spambots. You need JavaScript enabled to view it. whether you have any specific question or wish any advice.

We wish you a prosperous year.

Bitcoin fell to its lowest level since February 2018

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The price of the digital coin fell as much as 4.6 percent Tuesday to $6,450.01, bringing the slide for the year to more than 50 percent. It’s down from a record high of $19,511 reached in December, the culmination of the more than 1,400 percent surge seen in 2017 as Bitcoin burst on to the mainstream.

 “I don’t think this is driven on any particular news, just the general downtrend after the 2017 run,” Kyle Samani, managing partner at Austin, Texas-based crypto hedge fund Multicoin Capital, said in an email. “A lot of people who bought at $9,000 in April are realizing that they’re not going to break even anytime soon, and are instead trying to get out.”
 

Cryptocurrencies have been beset by a string of bad news. Most recently was the “cyber intrusion” on the South Korean cryptocurrency exchange Coinrail this past weekend that appeared to result in a loss of an unknown quantity of digital currency. Bitcoin slumped 12 percent on Monday.

Exchanges have come under growing scrutiny around the world in recent months amid a range of issues including thefts, market manipulation and money laundering. Back in May, the sector found itself under increasing government scrutiny when the Justice Department opened up a criminal probe into illegal trading practices that can manipulate the price of Bitcoin and other cryptocurrencies.

“The relative size of this user group raises questions,” Susan Eustis, president of WinterGreen Research Inc., said in an email. “As cryptocurrency venues have come under growing scrutiny around the world in recent months amid a range of issues including thefts, market manipulation and money laundering, the base of the Bitcoin appeal has eroded.”

Skeptics have remained vocal. Bitcoin got no love from two of the world’s wealthiest men, Bill Gates and Warren Buffett, with the latter calling the currency "probably rat poison squared” last month.

In China, the Communist Party-run People’s Daily reported on June 7 that the country will continue to crack down on illegal fundraising and risks linked to Internet finance, quoting central bank officials. The nation’s cleanup of initial coin offerings and Bitcoin exchanges has almost been completed, the newspaper said, citing Sun Hui, an official at the Shanghai branch of the central bank.

Article from Bloomberg written by   and 

Bill Gross from Janus Henderson Group Plc warned the United States

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Prominent investor Bill Gross from Janus Henderson Group Plc warned the United States is looking at a recession in the case that the Federal Reserve lifts the benchmark interest rate more than one or two times in the next year. The central bank has been raising the target range in steps of a quarter of a percentage point and stepping up pace since December 2015. The gauge is currently at 1.75% to 2%.

The portfolio manager, a former co-head of Pacific Investment Management Co. (PIMCO), noted the consensus among Fed officials suggests three to four increases in the next twelve months and that forward Eurodollar markets point to two moves, according to a post on the firm's Twitter account on Tuesday.

The FedWatch tool, CME's futures tracker, showed bets of 58.4% at 8:13 pm CET for at least two more hikes through the last policymakers' meeting this year, scheduled for December.

 

Yields on debt issued by the United States Department of the Treasury grew on Tuesday, which means bond prices dropped, while stock markets in New York were showing a mixed bag. Precious metals declined and the dollar was mostly up. Traders showed the weakest demand in today's auction of three-year notes since April 2009, as the bid-to-cover ratio landed at 2.51. The figure compares to 2.83 from a sale one month before.

The high yield jumped to 2.685%, the strongest point since May 2007, from 2.664%. It compares to the when-issued level of 2.679%. Indirect bidders – a category including foreign central banks and international monetary authorities, purchased 39.6% of the accepted competitive tenders, the least since November 2014. Compared to 51.4% from the last round, it points to a fall in foreign bids.

Breaking the News / IT

July 10th, 7:50 PM (Source: TeleTrader.com)

 

De Beers to sell diamonds made in a laboratory

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 Diamonds 29052018Synthetic diamonds at a De Beers lab.
                                                      Photographer: Chris Ratcliffe/Bloomberg

De Beers is moving to sell diamonds made in a lab rather than formed underground over billions of years.

The world’s biggest diamond miner for years vowed that it wouldn’t sell stones made in laboratories. Now, it has U-turned on that pledge and will start selling man-made stones for about $800 a carat, according to a memo sent to its customers and obtained by Bloomberg News.

While De Beers has never sold man-made diamonds before, it’s very good at making them. The company’s Element Six unit is one of the world’s leading companies for synthetic diamonds, which are mostly used for industrial purposes. It has also been producing gem-quality stones for years to help it tell the difference between natural and man-made types and to reassure consumers that they’re buying the real thing.
While man-made gems make up just a fraction of the $80 billion global diamond market, demand is increasing as buyers look for stones that are cheaper. Retailers like Walmart Inc. have sold synthetic diamonds to customers seeking cheaper alternatives.
De Beers, a unit of Anglo American Plc, will sell the lab-produced gems under a new Lightbox Jewelry brand to be started in the U.S. later this year, according to the memo.

Bloomberg 

By
Thomas Biesheuvel

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