It’s been a busy week of data releases, particularly from the US. July’s US inflation figures were highly anticipated; the data gave a boost to expectations that the Federal Reserve will cut rates in September.
Earlier we also saw the release of better-than-expected jobs data after the number of Americans filing new claims for unemployment benefits last week was lower than forecasted. At the time of writing both gold and silver are trading flat, as a result.
Elsewhere, additional data firmed up our viewpoint that the troubling times are ahead: The Eurozone released its growth figures for Q2 and whilst there was little to report for the area overall, Germany has firmed up its position as the “sick man of Europe”. It posted a surprise contraction in Q2 due to a halt in equipment and buildings investments, as the industrial sector continues to weaken under pressure from rising interest rates. Data released by Statista also showed that last year just over 21 percent of the Eurozone population were at risk of poverty or social exclusion.
More alarming than any data release was the declaration from The World Health Organisation that the ‘mpox’ outbreak is now a health emergency of international concern. The growing pandemic will serve as a test to global solidarity following the ongoing fallout from the Covid pandemic. Of course, right now the term 'global solidarity’ is not one anyone would choose to describe the state of international relations.
To misquote a Chinese curse, "We live in interesting times." Of course, the implication here is that we are heading into worrying times. With this in mind this week we bring you something a little different, a thread posted on the platform formerly known as Twitter. The thread comes courtesy of our friend Ronnie Stoerferle, founder of Incrementum.
The thread titled, “The Optimal Gold Allocation: A Deep Dive into Recent Research” seeks to answer the question so many of us ask, “How much gold, is the right amount of gold?” and “Is it possible to have too much gold?”
How much gold and silver you own is, of course, a personal preference, but its good to be guided by the wealth of research and data out there. Much of it shows that you don’t need all that much gold in your portfolio in order to benefit from its unique properties.
Click here to find out how much gold, is enough gold. And let us know if you agree.
And for those of you who are closely following the biggest election of the year then check out our latest video where we bring highlights of the interviews with legendary investor Jim Rogers and Silver Guru David Morgan. Both explore the potential impact of the upcoming US election on gold and silver prices and discuss how elections can trigger market changes, driven largely by uncertainty.
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