Gold fell 1.4% to $1,760 an ounce Thursday afternoon after the world’s largest exchange for bets on the metal said it will require larger cash deposits from traders.
CME Group, whose trading volume reached an all-time high Wednesday, said in a press release the measure was part of a “normal review of market volatility to ensure adequate collateral coverage.” One interpretation of that is that gold and other assets have traded so frantically of late that the exchange is worried about the possibility of some customers being wiped out. When that happens, customers can end up owing money, and their losses can become losses for the exchange.
The metal’s hit another record high. Robert Wiedemer is still buying.
The stock market closed down more than 500 points. Gold, on the other hand, set another record high, at $1,790 an ounce. It’s a quandary for investors: Many of the metal’s biggest gains are in the past. But with the uncertainty in the markets, maybe there’s more to come?
Savings accounts are paying next to nothing, but next to stocks, dollars are doing great.
Most savings accounts pay less than 1% right now, and rates won’t increase for at least two years, the Federal Reserve suggested yesterday. Why? It wants to nudge savers into following its A-B-C investment plan: anything but cash. The idea is that if savers buy stocks or real estate instead of sitting in cash — or even better, spend — the economy will grow, markets will recover and all will end well.
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