Well what a night! (1963 – The Four Seasons – I remember it well – great title for a song)

First snow of 2017, beautiful blue sky and so much going on the financial markets over night that it’s a challenge to figure what’s actually happening in the financial World.

Bitcoin

Bitcoin smashed through $19000 on the Coinbase Exchange and then hit a brick wall and immediately slipped back into reverse.

Over a third of all Bitcoin transactions go through the Coinbase Exchange, which regularly prices Bitcoin at a premium over other Exchanges, although industry site Coindesk, which averages prices from major exchanges, recorded an average price hike to $17153, before the decline to $14566.

Gold

Gold is having a torrid time, I just looked, it’s down at $1246 as I am writing this post and there’s no way that truly reflects the core value of a truly special metal.

The sooner we get away from the situation where the banks and traders are able to manipulate the price of precious metals, then that’s going to be great by me.

Having said that I think what’s happening with gold is that the markets are pricing in a potential 1.5% interest rate hike at the Federal Reserve Bank’s next meeting and optimism surrounding Donald Trumps sweeping corporate tax cuts, are causing investors to pull out of their safe haven investments.

Baby Boomers

I’m a baby boomer, I’m not 71 yet, but I’m not far away.

Why is 71 such an important number?

Well it’s the age when Required Minimum Distributions that a retirement policy holder in the United States must withdraw annually, starting with the year that they reach 701⁄2 years of age or, if later, the year in which they retire.

Wikipedia defines baby boomers as “… the demographic group born during the post-World War II baby boom approximately between the years 1946 and 1964. This includes people who are between 53 and 71 years old in 2017.

There are various estimates on the number of baby boomers in the US, but there are approximately 75 million. Assuming that they retire evenly over the 18 year period (1946–1964) then this equates to approximately 4 million retiring per year, or over 10,000 per day!

So that’s a heck a lot of additional investment capital ($14 trillion) out there that’ll be washing through the markets.

No wonder there’s been some hiatus!

legacy gold