I don’t really get the appeal of gold to gold bugs, people who obsess over gold and say it’s an essential commodity to have in one’s portfolio.🤑
Gold is shiny and popular for use by rich people for showy jewelry, 💎 it’s uses in the real economy are quite limited — it’s fantastic conductor and has some other uses in chemistry — but other then that is has no real value. Gold in certain electronics is an important use, but the gold typically used is only a few atoms thick and only a small portion of the gold mined and consumed every year. Gold might not be entirely without use, but most of it’s practical uses are in margin, a small part of production each year.📿
There is some value in investing in commodities or energy businesses as a hedge against inflation, especially energy-driven inflation like what we saw during the 1970s with the energy-crisis. That said, commodities are always risky, as you don’t know if products will be substituted for new products. Coal, for example, has seen a long decline in recent years as natural gas and renewable have replaced it as a cheaper source of energy.🛢 Energy companies, especially in broader form, are less risky then raw commodities, as they enjoy a larger degree of flexibility in the sources of energy they sell. Electricity companies will continue to have a dominate role no matter what their generation is fueled by, coal and oil companies have certain talents and land ownership that will make them leaders even if we move towards geothermal, wind and solar.
Most precious metals aren’t really the precious, even if they are rare.🐲 I am more interested in the real economy, something you can point to actual economic growth, rather then some dubious scam pushed by certain unscrupulous business people.
One benefit to living in inflationary times is it will make it easier to kill stupid ideas put forward by the government and industry — they will get too expensive due to cost over runs, and end being canceled.
Surging prices are steadily chipping away at Americans' buying power – as well as President Biden's approval rating.
The Labor Department reported Wednesday that consumer prices were 6.2% higher in October than a year ago. That's the sharpest increase since November of 1990.
Price increases were widespread, with energy, shelter, food and vehicles all costing more. Excluding volatile food and energy costs, prices were up 4.6%
Much of the upward pressure on prices is the result of a mismatch between booming demand and limited supply, as businesses struggle to find both parts and workers.
Many employers have increased pay in order to attract more workers. But growing paychecks have quickly been eroded by the rising cost of gas and groceries.
WASHINGTON (AP) — The number of Americans applying for unemployment benefits plummeted last week to the lowest level in more than half a century, another sign that the U.S. job market is rebounding rapidly from last year’s coronavirus recession.
Jobless claims dropped by 71,000 to 199,000, the lowest since mid-November 1969. But seasonal adjustments around the Thanksgiving holiday contributed significantly to the bigger-than-expected drop. Unadjusted, claims actually ticked up by more than 18,000 to nearly 259,000.
The four-week average of claims, which smooths out weekly ups and downs, also dropped — by 21,000 to just over 252,000, the lowest since mid-March 2020 when the pandemic slammed the economy.
READ MORE: Facing skilled worker shortage, U.S. companies try to train their own new labor pools
Since topping 900,000 in early January, the applications have fallen steadily toward and now fallen below their prepandemic level of around 220,000 a week. Claims for jobless aid are a proxy for layoffs.
Overall, 2 million Americans were collecting traditional unemployment checks the week that ended Nov. 13, down slightly from the week before.
Inflation, the monster that eats everything, good or bad 👹
IInflation makes everything more expensive, meaning that people cannot afford as much and must cut back. Previously affordable things must be scaled back, regardless if such scaling back is good or bad.
Inflation encourages conservation and cutting of wasteful spending but at the same time not all spending is bad. It encourages smaller cars and more insulation. It encourages people to reevaluate their budgets and work to live more within their means.
Inflation means that some very good government programs like college tuition programs or open space conservation will be killed off or reduced. Public programs often are victims of inflation as budgets are busted.
