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Starting next month, Veterans Affairs officials will offer a “last-resort” program for tens of thousands of veterans in danger of losing their homes because of post-pandemic mortgage problems, leaders announced Wednesday.
The new Veterans Affairs Servicing Purchase (VASP) program, which launches May 31, will allow the department to purchase defaulted VA loans from outside mortgage servicers, then modify the terms to allow financially strapped veterans to avoid losing the properties.
Borrowers will be guaranteed a fixed 2.5% interest rate for the remainder of their loans.
“This program will help ensure that when a veteran goes into default, there is an additional affordable payment option that will work in a higher-interest rate environment, so they can keep their homes,” VA Undersecretary for Benefits Joshua Jacobs said.
Department leaders estimate the new program will help about 40,000 veterans, troops and family members currently struggling with VA-backed home loans.
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An NPR investigation in 2023 uncovered numerous families hurt by the gaps in support services.
VA last fall called on all mortgage companies to delay additional foreclosures until May 2024 while they set up the new support program. Under VASP, veterans will not need to apply to be included, but will instead have their mortgages purchased by VA if they qualify.
Jacobs said VA planners estimate that the new program will produce about $1.5 billion in savings over the next decade by avoiding costs for housing vouchers, federal loan defaults, and other complications related to veterans homelessness.
The department is currently backing more than 3.7 million active home loans, including more than 400,000 new loans in 2023 alone.
Veterans facing problems with housing bills can contact VA at 877-827-3702, option 4, or visit the VA home loans website.
Leo covers Congress, Veterans Affairs and the White House for Military Times. He has covered Washington, D.C. since 2004, focusing on military personnel and veterans policies. His work has earned numerous honors, including a 2009 Polk award, a 2010 National Headliner Award, the IAVA Leadership in Journalism award and the VFW News Media award.
Source: militarytimes.com
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Our goal here at Credible Operations, Inc., NMLS Number 1681276, referred to as “Credible” below, is to give you the tools and confidence you need to improve your finances. Although we do promote products from our partner lenders who compensate us for our services, all opinions are our own.
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SCHENECTADY — Bluebird Home Decor has begun its closing sale for its State Street location after the owner announced via Facebook that she would be shuttering the store in March.
“A little over a year ago I began feeling a nudge that I could not ignore,” stated owner Nicolle Broughton in a Facebook post Friday. “After much thought and even more prayer, I have made the very difficult decision to move on from my retail storefront in Schenectady.”
The storefront opened in 2018. However, owner Broughton established the home decor and gift shop in 2013, having had a previous location in Troy.
The shop has handmade, vintage and new items for peoples homes and works with over 20 artists and other businesses across the country, according to the company website.
Broughton said she’s not sure what she’ll be doing next.
“I do know that my creativity does not end here. I will still be around, selling in some capacity,” the Facebook post stated. “I am simply stepping out in faith, releasing my storefront and believing that the best is yet to come. I cannot wait to see how the next few years unfold.”
Broughton also thanked everyone for their support over the years in the post.
“It has been one of the greatest honors and blessings of my life to create and share this space with you allI will miss you all dearly,” she said. “My sincerest thanks and deepest gratitude for all of your support over the years.”
Many customer comments on the post said that they were sad to see the store close.
“So sad to see this post… although not often enough I enjoyed binge shopping at your store,” said Anita Nasuto in a comment. “It was a treat to walk through your door and find so many irresistible gifts and special items for myself. They will mean even more to me now. Sincerely hoping you find a most rewarding path ahead. Very best wishes and thanks for adding such class to that corner.”
The store will offer sales until it closes, all of which are final.
“Most items are 30/40/50% off, any item without a sale tag is 10% off,” Broughton said. “The store will remain open Thursday-Sunday through mid-March. Please come use your gift cards! We also hope to have a tent sale this May, details to follow, and a holiday shop somewhere in the capital district this holiday season.”
Source: dailygazette.com
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As 2024 has progressed, economic data–especially inflation data–have made it increasingly clear that rates will not be coming down nearly as soon as the Fed (and the market) expected.
Rates are driven by multiple factors. At present, inflation is chief among those, followed by the economy. In general, higher inflation and economic strength coincide with higher rates.
Inflation and economic data evolved in such a way as to offer some light at the end of the high rate tunnel at the end of 2023. Even the Fed acknowledged the shift by lowering its 2024 rate projection by half a percent in December.
But 2024 has proven to be a frustrating year so far for everyone who’d been hoping that inflation and rates were finally on the way back down. We weren’t necessarily expecting to see any new fireworks this week, but we got them anyway.
The trouble began on Thursday morning with the release of the quarterly GDP data. One component of GDP is “personal consumption expenditures” (PCE). One manifestation of the PCE data is a price index which in turn has a variation that excludes food and energy to give us the Core PCE Price Index.
Core PCE is akin to Core CPI and it happens to be preferred by the Fed when it comes to tracking the 2% inflation target. There are several different Core PCE measurement methods, which can make things fairly confusing on weeks when the data is released. They include:
- Annualized quarterly Core PCE, which takes an average of 3 monthly readings and determines the % change versus the average of the 3 months in the previous quarter before multiplying the result by 4 to get an annualized figure (i.e. this is what annual core inflation would look like if the quarter over quarter trajectory were maintained for an entire year. This number is only released once per quarter, but it is revised on each of the next 2 months as new monthly data comes in.
- Monthly Core PCE, which is released every month and serves as the raw ingredient for quarterly PCE
- Annual Core PCE, which is just a year-over-year version of the monthly data
All of the above come from the same report, but all can send different signals. To make matters more confusing, the quarterly number is released with GDP one day BEFORE the monthly number, but without the same level of detail.
Long story short, the annualized quarterly Core PCE, which had been back in the Fed’s target range until this week, suddenly did this:
Markets knew it would be moving up. They’d guessed the number would be 3.4%, in fact (which makes sense based on the 2 months of data we already had for Q1 compared to Q4’s tamer numbers). But the actual number was 3.7%, which is quite a big “beat” when it comes to inflation indices.
Markets panicked initially, with stocks selling off and bond yields spiking to the highest levels since early November. Traders who bet on the Fed Funds rate quickly increased their levels for the end of 2024.
A day later, however, and the more detailed, monthly PCE data painted a slightly softer picture. With March numbers now able to be compared to March 2023, the true year over year number was 2.8% (still too high, but not as high as the previous day’s data might have suggested).
The news was slightly better when viewed in month over month terms. Here too, inflation is still almost twice as hot as the Fed would like to see, but it was actually slightly lower than last month (after revisions). To be clear, we’re saying that the pace of price increases is lower–not prices themselves.
Some people get upset when economic data is revised in a way that makes it seem like the government tried to paint a rosier picture for initial releases. In addition to numerous examples of past revisions having a completely opposite effect, rest assured, the financial market sees all the moving parts and trades accordingly. Specifically, even after the softer data came out on Friday, bond yields (a fancy word for “rates”) were still higher than they were before the previous day’s data and significantly higher than the lows seen on Tuesday after PMI data.
The PMI data refers to S&P Global’s Purchasing Managers Indices (PMIs). This is another version of the highly regarded PMIs from the Institute for Supply Management (ISM). Both firms produce PMIs that track the manufacturing and services sector. Tuesday’s version from S&P Global came in unexpectedly lower on both fronts. It may not look like much of a drop on a chart, but markets are intently focused on economic momentum as it could speak to the prospects for inflation and rates in the future.
The prospects for mortgage rates have not been great in April. While we did see some relief on Friday, Thursday’s reaction to the quarterly PCE data brought the average 30yr fixed rate to new 5 month highs–a fact that is not yet reflected in Freddie’s weekly survey numbers.
In this week’s other economic news, Pending Home Sales rose more than expected (which is a good sign for next month’s existing home sales). They’re now no longer losing ground in year over year terms.
The major caveat is that the outright level of pending home sales remains near the lowest in decades.
New Home Sales are a different story. While they’re certainly not as high as they were a few years ago, they’ve held up much better on a combination of available inventory and builder incentives.
The week ahead brings several key events.
Monday:
Treasury will issue a quarterly update on borrowing needs in stages on Monday and Wednesday. This has been a hot button for rates the last few cycles.
Wednesday:
The Fed announcement (2pm, ET) is important because it will likely contain an update on how the Fed is handling its balance sheet run-off. This doesn’t mean the Fed is going to buy new bonds again, but they will soon announce that they’ll maintain more of their existing bond holdings. Experts disagree on whether this will matter for rates, but that could depend on the details. More importantly, we’ll get updated thoughts from Powell in the press conference (2:30pm ET) that follows the announcement. Even before this week’s data, the Fed was already questioning whether it would be able to cut rates at all in 2024. The PCE data arguably writes those questions in ink.
ISM’s version of the manufacturing PMI will be released at 10am ET as well as the Job Openings data for March. Treasury releases the more detailed stage of the borrowing announcement at 8:30am ET.
Friday
The big monthly jobs report will be released on Friday morning at 8:30am ET followed 90 minutes later by ISM’s service sector PMI
Source: mortgagenewsdaily.com
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Matthew Graham, chief operating officer at Mortgage News Daily, joins CNBC’s ‘The Exchange to break down his outlook for home mortgages, real estate prices, and more.
04:54
Wed, Apr 17 20241:42 PM EDT
Source: cnbc.com
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National mortgage rates edged higher for all types of loans compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans jumped.
Some forecasters are backing off from the earlier expectation of lower mortgage rates this year. Fixed mortgage rates follow the 10-year Treasury yield, which moves as investor appetite fluctuates with the state of the economy, inflation and Federal Reserve decisions.
“The issue of inflation remains unsettled,” says Ken Johnson of Florida State University. “This is putting upward pressure on mortgage rates through the yield on 10-year Treasurys.”
The Fed indicated it’d cut rates in 2024, but policymakers held off at its latest meeting, citing the need for more promising economic data. The Fed has been working to bring inflation back to its 2 percent target since 2022.
The Fed meets next on May 1 — at the start of the homebuying busy season.
Whether mortgage rates move up or down, though, it’s difficult to time the market. Often, the decision to buy a home comes down to what you need. Depending on your situation, it might make sense to take a higher rate now and refinance later. This way you can start building equity, rather than waiting for a time when rates and prices are more favorable.
Rates accurate as of April 22, 2024.
The rates listed here are averages based on the assumptions shown here. Actual rates available across the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Monday, April 22nd, 2024 at 7:30 a.m. ET.
30-year mortgage rate increases, +0.24%
The average rate you’ll pay for a 30-year fixed mortgage today is 7.29 percent, up 24 basis points over the last seven days. Last month on the 22nd, the average rate on a 30-year fixed mortgage was lower, at 6.97 percent.
At the current average rate, you’ll pay a combined $684.89 per month in principal and interest for every $100,000 you borrow. That’s up $16.23 from what it would have been last week.
Learn more about 30-year fixed mortgage rates, and compare to a variety of other loan types.
15-year mortgage rate advances, +0.20%
The average 15-year fixed-mortgage rate is 6.74 percent, up 20 basis points over the last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $884 per $100,000 borrowed. The bigger payment may be a little harder to find room for in your monthly budget than a 30-year mortgage payment, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much faster.
5/1 ARM rate trends higher, +0.10%
The average rate on a 5/1 adjustable rate mortgage is 6.68 percent, rising 10 basis points since the same time last week.
Adjustable-rate mortgages, or ARMs, are mortgage loans that come with a floating interest rate. In other words, the interest rate will change at regular intervals, unlike fixed-rate mortgages. These types of loans are best for people who expect to refinance or sell before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.
While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.
Monthly payments on a 5/1 ARM at 6.68 percent would cost about $644 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan’s terms.
Jumbo mortgage interest rate moves up, +0.17%
The average rate for a 30-year jumbo mortgage is 7.38 percent, up 17 basis points since the same time last week. This time a month ago, jumbo mortgages’ average rate was below that at 7.12 percent.
At today’s average rate, you’ll pay $691.02 per month in principal and interest for every $100,000 you borrow. That’s an increase of $11.55 over what you would have paid last week.
Refinance rates
30-year fixed-rate refinance goes up, +0.23%
The average 30-year fixed-refinance rate is 7.30 percent, up 23 basis points over the last seven days. A month ago, the average rate on a 30-year fixed refinance was lower at 6.91 percent.
At the current average rate, you’ll pay $685.57 per month in principal and interest for every $100,000 you borrow. Compared with last week, that’s $15.56 higher.
Where are mortgage rates heading?
If and when the Fed cuts interest rates depends on incoming economic data, such as the rate of inflation and the jobs market.
“While the majority of Fed members still expect three rate cuts this year, Atlanta Fed President Bostic is now predicting just one rate cut in the fourth quarter,” says Melissa Cohn of William Raveis Mortgage. “Not the news we want for the spring market.”
Keep in mind: The rates on 30-year mortgages mostly follow the 10-year Treasury, which shifts continuously as economic conditions dictate, while the cost of variable-rate home loans mirror the Fed’s moves.
These broader factors influence overall rate movement. As a borrower, you could be quoted a higher or lower rate than the trend based on your own financial profile.
What current rates mean for you and your mortgage
While mortgage rates change daily, it’s unlikely we’ll see rates back at 3 percent anytime soon. If you’re shopping for a mortgage now, it might be wise to lock your rate when you find an affordable loan. If your house-hunt is taking longer than anticipated, revisit your budget so you’ll know exactly how much house you can afford at prevailing market rates.
You could save serious money on interest by getting at least three loan offers, according to Freddie Mac research. You don’t have to stick with your bank or credit union, either. There are many types of mortgage lenders, including online-only and local, smaller shops.
“All too often, some [homebuyers] take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming,” says Mark Hamrick, senior economic analyst for Bankrate. “But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”
More on current mortgage rates
Methodology
Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).
The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.
Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.
Source: bankrate.com
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Investors evaluating precious metals often ask: gold vs silver, which is better for investors? In this comparison, discover the investment merits of gold’s stability and silver’s industrial relevance, geared towards helping you decide which metal suits your financial strategy. Without leaning towards one or the other, this article presents a balanced view to inform your choice.
Key Takeaways
- Gold and silver serve as a store of value and a hedge against inflation, with gold mainly being an investment asset while silver has significant industrial applications, impacting their price volatility and investment suitability.
- Gold is revered as a safe haven asset, attracting investment during economic turmoil and serving as an inflation hedge, while silver’s dual role in industry and investment sectors offers growth potential and affordability.
- Investors should consider precious metals within a diversified portfolio and can choose between physical metals, ETFs, or mining stocks, each with its own benefits and risks, and should evaluate after-inflation returns and personal financial goals to decide between gold and silver.
Gold and silver, the titans of precious metals, have long served as a reliable store of value and an effective inflation hedge. While gold primarily functions as an investment asset, offering potential for significant returns to those with larger capital, silver boasts an additional industrial role, broadening its appeal. However, investing in these precious metals isn’t as simple as stashing bars or coins in a safe. It involves dealing with price volatility and aligning your investment with long-term goals.
Adopting a buy-and-hold approach may serve investors best over the long term when investing in gold and silver. But why? It’s because the prices of these metals are shaped by a vast array of factors. Geopolitical issues, economic turmoil, and demands in the industrial sector all play a part in the daily dance of gold and silver prices. Understanding these factors can help you make informed decisions about when and how much to invest.
So why consider precious metals as part of your investment portfolio? They offer a unique combination of benefits:
- Gold, with its reputation as a safe haven, attracts those looking for stability amidst market chaos
- Silver, with its dual role in the industrial and investment sectors, offers an affordable entry point for investors with smaller capital
- Both metals provide a robust way to diversify your portfolio and protect against inflation.
Understanding Gold’s Position as a Safe Haven Asset
Gold has long been a symbol of stability and security in the financial world. Its glittering history spans centuries, maintaining its value even in times of economic turmoil. It’s no wonder that in periods of global uncertainty or financial crises, investors often flock to gold, buoying its value and cementing its reputation as a safe haven.
One of gold’s most notable features is its role as an inflation hedge. As the cost of living increases, inflation hedge gold has shown a remarkable ability to preserve the real value of assets. This unique characteristic comes from how gold’s supply growth aligns with long-term global economic growth, helping to maintain its value during inflationary periods. This resilience, coupled with the tendency of investors to shift towards gold as a safe haven during inflation, can drive up its demand and price.
Given these factors, it’s clear why gold holds a revered place in the financial market. Whether you’re looking for a buffer against economic instability or an asset that can protect your buying power in the face of rising prices, gold stands firm as a reliable safe haven asset.
Silver’s Dual Role: Industrial Demand and Investment Segment
While gold may steal the spotlight for its luster and stability, silver plays a shining role of its own. Apart from being an investment asset, silver’s widespread industrial applications can drive up its price and enhance its investment appeal. In 2023, industrial applications reached a new record high, with photovoltaics usage increasing by a staggering 64%. China’s industrial demand for silver surged by 44% in the same year, predominantly driven by growth in green applications such as:
- photovoltaics
- solar panels
- batteries
- electronics
- medical devices
These industrial applications highlight the versatility and value of both silver and silver bullion coins as an investment.
Due to its significant industrial use and affordable price point, silver is an accessible option for investors with smaller amounts of capital. However, the silver lining has a cloud. During economic downturns, silver’s industrial use can result in a drop in demand and a corresponding price drop. This volatility underscores the need for investors to consider their risk tolerance when investing in silver.
Despite its volatility, the forecast for silver demand in 2024 predicts a growth of 2%, with industrial production expected to achieve new records. This projected growth, along with silver’s role in portfolio diversification and potential for future price appreciation, suggests that silver’s investment appeal may shine brighter in the future.
Comparing Investment Strategies: Diversified Portfolio Inclusion
Including gold and silver in a diversified portfolio can enhance performance during market volatility and inflation. Financial advisors often suggest allocating 5-10% of an investment portfolio to commodities like gold and silver for diversification purposes. The logic is simple: gold offers diversification due to its historically low correlation with other financial assets such as stocks and bonds.
The inclusion of gold and silver, primarily an investment asset class, which unlike an asset produces cash flow, can act as an uncorrelated asset relative to equities, serving to diminish the total volatility of the portfolio.
Some benefits of including silver in your portfolio are:
- Silver has significant industrial applications
- It is positively correlated with periods of economic growth
- Anticipated growth in areas such as renewable energy and artificial intelligence suggests an expanding demand for silver.
However, it’s crucial for investors to consider the following factors when determining the fit of precious metals within their investment strategies:
- Potential costs for secure storage of precious metals
- The speculative nature of precious metals
- Due diligence and careful consideration of your financial circumstances
As with any investment decision, due diligence and careful consideration of your financial circumstances are key, including addressing portfolio risk management requirements.
While investing in physical precious metals has its appeal, precious metal mining stocks offer an intriguing alternative. Gold stocks provide a leveraged play that can outperform physical gold when prices rise, offering substantial potential for capital gains. The reason? Mining stocks do not just reflect the value of the precious metal. They also include the prospects of mining companies themselves.
Compared to physical gold, gold stocks offer several advantages:
- They are more liquid and can be easily bought and sold.
- They can provide additional income through dividends paid by established, profitable mining companies.
- Investors can benefit from the expansion of mining operations and reap profits from significant new gold discoveries.
These advantages make gold stocks an enticing option for those looking to diversify their portfolio.
Moreover, by choosing gold mining stocks, investors can avoid the extra costs associated with the storage and security of physical gold. This can make gold stocks a more convenient and cost-effective alternative for investors who want exposure to gold without the logistical challenges of owning physical metal.
Physical Bullion vs. ETFs: Choosing Your Investment Vehicle
When considering precious metals as part of your investment strategy, it’s essential to explore all available options. Physical bullion and exchange-traded funds (ETFs) present two distinct investment vehicles, each with its own set of advantages and challenges. Gold ETFs, for instance, offer enhanced liquidity compared to physical gold, allowing investors to quickly buy and sell shares without facing the logistical challenges tied to physical transactions of gold.
Investing in gold ETFs can also be more cost-effective over time. Investors do not have to deal with the costs of purchasing and maintaining physical gold, and the responsibilities of securing and insuring the physical gold are professionally managed by the fund. However, it’s crucial to remember that the value of shares in gold ETFs may not track the price of gold precisely, as the fund’s expenses could slightly erode the value of these shares over time.
On the other hand, investing in physical gold comes with its own set of considerations. Apart from the allure of owning a tangible asset, investors must account for costs such as storage fees, insurance, and potentially higher dealer premiums over the market price. Additionally, purchasing physical gold requires vigilance due to the risks of scams, necessitating transactions with reputable dealers and possible appraisal costs, which add to the overall investment expense.
Evaluating After-Inflation Returns: Gold vs. Silver
When it comes to returns, it’s crucial to look beyond the nominal figures and consider the real value – the after-inflation returns. And in this regard, the performance of gold and silver may not be as glittering as one might expect. However, these precious metals have historically provided a hedge against inflation, offering returns that outpace inflation over certain periods. Here are some key points to consider:
- Gold and silver can serve as a portfolio diversifier, helping to reduce risk.
- Silver, due to its abundance, may have less upside potential compared to gold.
- Both gold and silver have historically provided a hedge against inflation.
While the after-inflation returns of gold and silver may not always be stellar, considering past investment product performance, they can still play a valuable role in a well-diversified investment portfolio, remaining steady amid inflation uncertainties.
Gold tends to perform well during economic downturns and protections against inflation; studies confirm a positive correlation between the rising cost of living and the value of both precious metals. This ability to preserve wealth becomes particularly valuable during periods of high inflation, increasing their attractiveness as part of an investment strategy.
While the after-inflation returns for gold and silver may not be highly impressive when compared to other investments, rising inflation typically enhances their attractiveness as part of an investment strategy. This context underscores the importance of considering multiple factors – including inflation, market conditions, and personal financial goals – when evaluating the potential returns on your investment in gold and silver.
Making the Decision: Should You Buy Gold or Silver?
So, armed with all this knowledge, how do you decide between gold and silver? The answer isn’t one-size-fits-all. Investors should assess their individual financial circumstances and objectives when considering gold or silver investments, as the suitability can greatly vary depending on personal financial situations and goals.
The choice between gold or silver as a better investment option hinges largely on the individual’s risk tolerance and comfort with each investment strategy. It’s crucial to remember that while both precious metals can serve as hedges against inflation and economic downturns, they also present unique risks and opportunities. For instance, gold’s role as a safe haven asset may appeal to those seeking stability, while silver’s industrial applications and lower price point could attract investors looking for growth and affordability.
Before making the final call, it’s advisable to seek the guidance of a financial advisor to evaluate the appropriateness of gold or silver investments for your portfolio. Additionally, conducting independent research into gold and silver investment strategies can help you make a well-informed decision. Armed with knowledge and guided by your financial goals, you are well-equipped to make the golden (or silver) choice that’s right for you.
Summary
When it comes to precious metals, gold and silver stand as powerful contenders. Their unique characteristics offer distinct advantages for investors, making them an appealing inclusion in a diversified portfolio. Gold, with its safe-haven status, serves as a buffer against economic instability, while silver, with its industrial applications and affordable price, presents growth opportunities and accessibility to investors.
Ultimately, the decision to invest in gold, silver, precious metal mining stocks, or any other asset class should be guided by a thorough understanding of your financial goals, risk tolerance, and market conditions. It’s not about choosing the shiniest option, but the one that aligns best with your investment strategy and financial aspirations. So, whether you’re drawn to the allure of gold or the versatility of silver, remember – knowledge is the most precious asset of all.
Frequently Asked Questions
What factors influence the price of gold and silver?
The prices of gold and silver are influenced by various factors, including global economic stability, inflation rates, currency values, interest rates, and mining supply. Geopolitical events and investor sentiment can also cause significant price fluctuations.
Can I invest in gold and silver without owning physical metals?
Yes, investors can gain exposure to gold and silver without owning physical metals by investing in exchange-traded funds (ETFs), mining stocks, or mutual funds that focus on precious metals.
How does the industrial demand for silver affect its investment value?
The industrial demand for silver, particularly in technology and renewable energy sectors, can significantly affect its investment value. As demand for industrial applications rises, the price of silver may increase, potentially offering capital gains to investors.
What risks are associated with investing in precious metals?
Investing in precious metals carries risks such as market volatility, liquidity issues, and potential losses if prices decline. Additionally, physical metal investments may incur costs for storage and insurance.
Are there any tax considerations when investing in gold and silver?
Yes, there are tax considerations when investing in gold and silver. Capital gains on precious metals may be subject to taxation, and the tax treatment may differ depending on the investment vehicle (e.g., physical metals, ETFs, stocks). A tax professional can help you with this.
How do geopolitical events impact gold and silver prices?
Geopolitical events can have a significant impact on gold and silver prices. Uncertainty and instability often lead investors to seek safe-haven assets like gold, which can drive up prices. Conversely, positive geopolitical developments can reduce demand for safe havens, potentially lowering prices.
What is the best way to track the prices of gold and silver?
Investors can track the prices of gold and silver through financial news websites, commodity exchanges, and market data services. Many investment platforms also provide real-time pricing information for precious metals.
How do central bank policies affect gold and silver investments?
Central bank policies, such as interest rate adjustments and quantitative easing, can affect the value of currencies and influence investor sentiment towards precious metals. Policies that lead to currency devaluation can increase the attractiveness of gold and silver as a store of value.
Source: crediful.com
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Interest rates care about quite a few different things, but inflation and Fed policy are two of the biggest considerations. One of the Fed’s favorite ways to track progress on inflation is the PCE price index which comes out every month, but also every quarter.
Oddly enough, the quarterly comes out a day before the monthly data on the 4 days of the year where a new quarter is reported. Today was one of those days and the quarterly data showed a big surge in inflation. The implication is that there’s a much bigger risk that tomorrow’s monthly inflation number also proves to be higher than expected.
Bonds/rates don’t like inflation to begin with, but it’s even more problematic when it has a direct bearing on Fed policy decisions. This particular news is seen as pushing the Fed even farther into the future for its first rate cut of this cycle. In other words, both the data, and the Fed implications were bad news for rates today.
The average lender jumped immediately higher by roughly an eighth of a point. This brings the top tier conventional 30yr rate index over 7.5% for the first time since November 13th. Tomorrow could add insult to injury, but it’s also worth noting that markets are expecting worse news now, so if it’s only a little worse, the injury might not be that bad.
Source: mortgagenewsdaily.com
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“Meaningful gains will only occur with declining mortgage rates and rising inventory,” he said in comments accompanying NAR’s release. Pending home sales climbed 3.4% in March. The Northeast, South and West posted monthly gains in transactions while the Midwest recorded a loss. https://t.co/ly7bgfU16U — National Association of REALTORS® (@nardotrealtor) April 25, 2024 The uptick arrived … [Read more…]
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Living with family members can be both a comforting and challenging experience, especially when those family members happen to be siblings. As adults, the dynamics change, and considerations extend beyond just familial bonds. When siblings decide to live together and potentially invest jointly, a unique set of opportunities and obstacles arise. Let’s delve into the pros and cons of such an arrangement.
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Pros
- Shared Financial Responsibilities: Pooling resources with siblings can ease the burden of financial responsibilities. Whether it’s splitting rent, utilities, or groceries, dividing costs can lead to significant savings for all parties involved.
- Greater Purchasing Power: When siblings join forces to invest, they can leverage their combined financial resources to access opportunities that might be out of reach individually. This could include purchasing a larger property, investing in stocks, or starting a business together.
- Built-In Support System: Living with siblings means having a built-in support system readily available. Whether it’s help with chores, emotional support during tough times, or simply having someone to share a meal with, the presence of siblings can provide a sense of comfort and security.
- Shared Goals and Values: Siblings often share similar upbringings, values, and life goals, which can facilitate smoother decision-making processes when it comes to investments and lifestyle choices. Aligning on common objectives can lead to a more cohesive living and investing experience.
- Potential for Long-Term Wealth Building: By combining resources and investing strategically, siblings can work towards building long-term wealth for themselves and future generations. Real estate investments, for example, can appreciate over time, providing a valuable asset for the family.
Cons
- Conflict and Tension: Living with siblings can sometimes lead to conflicts over finances, household responsibilities, or personal space. Differing lifestyles and personalities may clash, potentially causing tension within the household and complicating investment decisions.
- Dependency Issues: Dependence on siblings for financial support or decision-making can hinder individual autonomy and personal growth. It’s essential to strike a balance between mutual support and independence to avoid feelings of resentment or overreliance.
- Risk of Financial Disputes: Entering into joint investments with siblings carries the risk of financial disputes and disagreements. Differences in risk tolerance, investment preferences, or future plans may lead to conflicts regarding asset management and distribution of profits.
- Limited Privacy: Sharing a living space with siblings means sacrificing some level of privacy. While it can foster closeness and bonding, it may also restrict personal freedom and make it challenging to carve out individual spaces within the home.
- Uncertain Future Dynamics: Life is unpredictable, and circumstances can change over time. Siblings may experience shifts in career paths, relationships, or financial situations that impact their living arrangements and investment plans. Anticipating and adapting to these changes requires open communication and flexibility.
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Source: zoocasa.com