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The price of gold is on the rise.

If you have been keeping up with the news recently, you probably already know that gold prices on Monday hit a record high. This comes as no surprise to us at Kamaaina Loan & Cash For Gold, having been in the gold business for decades. This is what happens when the global economy is unstable. Since we have been in this state of flux with the coronavirus pandemic happening around the world for a couple of months now, the price of gold and other precious metals has also been affected. Market analysts are predicting that this increase in gold prices may continue for a while.

So, if you have been cleaning up around the house, as we all have been doing, you may have come across some gold or other precious metal pieces that are just collecting dust in some drawer or jewelry box. You may have even considered parting with those pieces. Well, now is the perfect time to head on over to Kamaaina Loan to get cash for those gold or other precious metal pieces. Our sales team is always friendly to all our customers and will be happy to assist. Remember before heading out to Kamaaina Loan & Cash For Gold, bring or wear a face mask. We are diligent about keeping our location safe for our customers.

Bad for Russia, good for gold

When asked about the direction gold will take, Big Rich always says, “It will go up, or it will go down, or it will stay the same.” Seldom does it do both so enthusiastically during one 24-hour period than it did Monday and today, however. As Bloomberg News reports:

Gold rebounded from yesterday’s biggest drop this year as investors sought a haven amid turmoil in emerging market economies and falling commodities.

Russia’s ruble plunged to a record low after the country’s largest interest-rate increase in 16 years failed to revive confidence in the currency. The Turkish lira also tumbled to an all-time low.

Your Christmas (or Hanukkah) present is you don’t have many Turkish lira. Lucky you.

(Silver did not get the same kind of love. When nervous people with money look for comfort, they don’t look to silver — usually.)

The New York Times has much more about why gold did the big turnaround. It’s the ruble. It was less than 20 years ago that Russia defaulted, bringing down Long-term Capital Management and its two Nobel prize-winning advisers who didn’t understand that things can change on a dime — or 10 kopecks.

The economic news had another victim not mentioned in the news reports: Obama haters. Remember how they were sure that Obama’s “soft power” tactics were making the United States a pitiful has-been? Well, the five countries that are subject to US (and to some extent international) economic sanctions are all on the verge of economic collapse: Russia, Iran, North Korea, Venezuela, Cuba.

It might not be a great idea to collapse countries with nuclear weapons, but the sanctions were meant to have an effect and they are having it.

As always, Kamaaina Loan is ready to buy or sell gold for you at whatever the day’s price is. We don’t care about the ruble.

#mauipawn #mauiretail

 

 

 

 

Wow! Sure didn’t see that coming

At the Kamaaina Loan blog we have been following with amusement and fascination the ups and downs of the gold price over the past few weeks. One minute the price jumps to $1250 and a day or two later it’s under $1200 and then back up again.

Sometimes the moves can be attributed to some pretty obvious doings in the world economy, sometimes the leaps and slides seem practically uncaused. But the price has gyrated around the $1225 that the gurus at Goldman Sachs last year were predicting for this period.

But who anticipated that late last week the Japanese central bank would decide to pump a lot of yen into the deflated Japanese economy, the latest in a series of failed attempts to bring that sector out of deflation? (Although the US Federal Reserve and many other wise heads have been worrying for years about inflation, deflation is the big problem. Economists know how to control inflation but — as the experience of Japan over the past 25 years and of the whole world economy in the ’30s demonstrated — deflation is the really intractable problem.)

The American stock market went crazy, with the Dow Jones Industrial Average spiking to a record high. Just why the transfer of ownership of a small fraction of Japanese equities from private (mostly Japanese) hands to Japan government hands should make American stocks so much more valuable is hard to figure.

But the effect on gold and its poor stepsister silver — once the stock market had reacted — was in line with conventional thinking: both fell off a cliff.

Gold got down to a four-year low and shortly before the market reopened today buyers were offering a mere $1172. Silver cratered. It has been a long while since it broke under $17. Today it is flirting with $15.

#mauipawn #mauigold #mauiretail