Oil prices cause alarm in some quarters
Rising oil prices could have unintended consequences for the economy.
- By Bruce Sands
Commodities investors who have benefited from rising precious metals prices in recent months may be a bit more wary when it comes to another key resource - oil.
This is because financial experts are becoming concerned that oil prices could be rising at a rate that will impede the slowly emerging economic recovery around the world.
A report this week in London’s Financial Times newspaper noted that the current $87 price level for a barrel of oil is inviting speculation that the commodity is headed back over $100. This would raise the danger of a double-dip recession by increasing the existing financial burden on consumers and businesses.
The newspaper added that some major Wall Street institutions predict that oil will be priced above $100 next year, due in part to increased economic activity.
Investors who are unconvinced that the current recovery will take hold have a handful of options to consider when it comes to stability. For example, dealer gold has long been seen as a safe haven investment during times of uncertainty.
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Budget deficit growing larger in just a short time
Congress has done little to address the budget deficit at this point.
- By Bruce Sands
For taxpayers who are alarmed about the federal deficit’s rate of growth in recent years, a look at the short-term numbers for the current year will offer little consolation.
New data from the Congressional Budget Office indicates that for the first six months of fiscal year 2010, the government ran a $714 billion deficit. One potential bright spot here is the fact that this figure was $67 billion than that recorded at this time last year.
The report also noted that federal outlays and revenues had fallen by a respective 6 and 4 percent margin over the past year. Much of the current improvement was said to be fueled by a reduction in the projected cost of the government’s Troubled Asset Relief (TARP) program.
Growing national debt could result in higher taxes
Higher deficits could result in higher taxes for many in the coming years.
- By Superior Gold Group
Many Americans are concerned about the growing national debt not only because of its potential impact on world financial markets, but also on their own tax bills.
Given the vast size of the national debt and the hundreds of billions of dollars it takes each year just to finance it, many people expect that higher taxes will eventually become part of the fiscal landscape.
This will especially be the case if the government ever defaults on its obligations and is suddenly unable to borrow more money or is forced to do so at a higher cost.
With these things in mind, a recent Reuters report noted that Paul Volcker, a former Federal Reserve Chairman who advises President Barack Obama on economic issues, had recently warned that that higher taxes may be necessary to reduce the deficit at some point in the future.
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Manufacturing helps fuel demand for precious metals
Friday, March 19, 2010- By Superior Gold GroupPrecious metal investments aren’t always driven by economic uncertainty. In some cases, they can be fueled by things like increased manufacturing activity.A recent New York Times article noted that a number of new uses for lithium, including in hybrid cars, have made that element increasingly expensive, with companies seeking to expand their access to it at various sites around the world, including in Bolivia, with Argentina, Serbia and Nevada also being mentioned as emerging locations.
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New credit card aims to attract gold investors
Monday, March 15, 2010
A new credit card product will allow customers to use their gold investments as collateral.
- By Superior Gold Group
People have been paying more attention to silver and gold investment opportunities in recent years because of the strong upswing in precious metals prices as well as economic uncertainty that has made people wary of other options, like equities markets.
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