Bubble
Popping News?
Shades of Detroit? Germany's auto heartlands in peril as 'golden age' fades
Some think-tanks and government officials fear that the toll will be higher as electric cars provide less assembly work than combustion engine vehicles, simple work steps are replaced by automation and companies relocate production.
GM Better Figure Out How to Stop Shrinking, I Mean Globally & Pronto, Before It’s Too Late
GM announced this weekend that it would pull out of Australia, New Zealand, and Thailand, in line with its strategy to exit one market after another to shrink itself to higher profits, which has led to a stupendous downward spiral in vehicle sales.
According to some market analysts, the new highs in gold against two major currencies is a further sign of gold's growing investment appeal as a safe-haven asset.
As a non-yielding asset, gold's opportunity costs look attractive as the Germany 10-year yield currently trades around minus 40 basis points. Meanwhile, Japan's 10-year bond offers a negative yield of three basis points.
"Currency debasement is typically a primary force for advancing the price of the benchmark store of value, but it's less about the price of gold advancing and more likely reflects the value of paper currency in decline," he said in a report Friday.
However, McGlone said that it could be only a matter of time before the U.S. dollar takes a hit. Although the U.S. dollar has shown impressive strength so far in 2020, it has not shaken bullish sentiment in the gold market. Gold has held critical support around $1,550 in the face of a stronger U.S. dollar.
Gold is not just resilient against the U.S. dollar;
it is also holding up despite record valuation in U.S. equity markets
DYI Quick Comment: Stocks may continue to rise in the
short term however for the long term they will decline due to excessive
valuations with gold soaring to new heights.
The Dow to Gold Ratio is now 18 to 1; gold and silver along with their
respective mining companies are good value.
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