Tag: economic

Investment

The global economy is on the edge of a precipice

Art-Invests | Investment of Art

The global economy is on the edge of a precipice, and it may be the biggest crisis since the Second World War.

The invasion of Ukraine has compounded the effects of the Covid-19 pandemic. It brings the cost of the food and fuel to skyrocket which weighing on the economic recovery and fanning inflation.

Rising interest rates are putting more pressure on countries, companies, and households. Climate changes, market turbulence and ongoing supply chain constraints also make the situation become more worse.

To lower economic stress, the IMP is calling for government officials and business leaders meeting in Davos to discuss reducing trade barriers.

However, earlier this month, Indian government decided to ban the export of wheat and it triggered the price of grain soaring. Some countries are heading in the opposite direction of IMF and implementing restrictions on trade in food and agriculture products that could probably exacerbate the shortages and push the prices even higher.

Image source: https://www.pexels.com/photo/american-and-chinese-flags-and-usa-dollars-4386371/

Investment

“Fragmentation” is underway

Art-Invests | Investment of Art

“Fragmentation” – one the many buzzwords heard around Davos this week. “Fragmentation”, it is referring to a breakdown of the kind of free-wheeling, border-crossing trades and investments which have built the global economic order over the past three decades. It also means “deglobalization” – rebuilding fences between nations and nations.

Deglobalization won’t happen overnight but it is not a new issue. Supply-chain disruption, war in Ukraine, growing political divides and trade disputes are renewing concerns about a return of an era of isolation.

Here are the micro-deglobalization playing out in real time:

China’s ride-hailing giant Didi officially delisted its share from NYSE

Starbucks and McDonald’s pulled out of Russian market

Airbnb said it would pull all of it listings in China

Malaysia moved to restrict exports of Chicken to its neighbors

Microsoft slowly scale back their China practice

These supply chains have been built over 30 years, so it’s just really difficult to move them into another country. The US baby formular shortage is a huge public health crisis that indicates the peril of relying too much on domestic production for essential goods. It is far more complicated if governments around the world are doing deglobalization.

Image source: https://www.pexels.com/photo/antique-antique-globe-antique-shop-antique-store-414916/

Investment

Decoupling, one of the biggest risk to the global economy

Art-Invests | Investment of Art

Global Markets may still underestimate the impact of China’s strict zero-Covid policy. Until now, nearly 400 million people across the mainland China are under full or partial lockdown. 

Investors probably do not aware of this zero-Covid policy as much more attention remains focused on the Russian-Ukraine war and the US Federal Reserve rate hikes.

However, more and more analysts are ringing warning bells as Shanghai, a city of 25 million and one of China’s premiere manufacturing is under the indefinite lockdown. The quarantines left the largest port in the world understaffed. Food supplies stuck in shipping containers, incoming cargo is now stuck at Shanghai marine terminals and cargo airlines were cancelled all flight in and out of the city. Sony, Apple supplier plants, Quanta Factory and Tesla factory in and around Shanghai, are idle.

The impact on China is major and the ripple effect on the global economy is also significant.

The ongoing disruption to manufacturing and shipping in China may help accelerate the US president Joe Biden to reduce US dependence on products and supply chains from China. Some US economic leaders believe that decoupling is underway. However, it is extremely difficult. Globalization is not something that is easy to be reversed because it would be incredibly costly. 

Collections

Royal Canadian Mint – 2022 Canadian Her Majesty Queen Elizabeth II’s Diamond Diadem Matte Proof Silver Coin with Swarovski

Art-Invests | Investment of Art

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To pay tribute to the Queen of Canada in her Platinum Jubilee year, Royal Canadian Mint presents a numismatic coin – 2022 Canadian Her Majesty Queen Elizabeth II’s Diamond Diadem Matte Proof Silver Coin with Swarovsk.

Specifications

Year : 2022

Gross Weight : 31.39 g

Diameter ( mm ) : 38 mm

Face Value : $20

Fineness : .9999

Quality : Matte Proof

Mintage : 4500

The Queen’s Coronation took place on 2 June 1953 following her accession on 6 February 1952.

Do you know that Coronation of Queen Elizabeth II in 1953 was very special for the people in the United Kingdom? This was the first Coronation ever to be televised, and it was watched by 27 million people in the UK alone and millions more audiences around the world.

On her way to the Coronation, Queen Elizabeth II wore the George IV State Diadem – this Diadem features roses, shamrocks and thistles with 1,333 diamonds and 169 pearls.

This year 2022, the Queen Elizabeth II is going to her 96 years old. She becomes the first British monarch to reach a Platinum Jubilee. And this few years. The Queen’s health and the future of the UK monarchy is always in spotlight. It makes collectors around the world are now buying items which are related to Queen Elizabeth II and Platinum Jubilee.

https://www.royal.uk/50-facts-about-queens-coronation-0

Investment

Precious metals hit hard as Fed Chair Powell Stays

Art-Invests | Investment of Art


Gold and silver futures were sharply down the U.S. trading session Monday while President Joe Biden confirmed Federal Reserve Chairman Jerome Powell for his second term. The precious metals prices were under a huge pressure and selling pressure accelerated overnight. 

December gold was last down nearly USD 41.10 at USD 1,810.4 and December Comex Silver was last down USD 0.421 at USD 24.36 per ounce.

Someone argued that another term for Powell was just an excuse for bullions future traders taking profits after recent good price gains. Some analysts believe bullion markets are likely to continue to be supported by the inflation trade and to be sought out as a hedge against rising and even problematic price inflation.

Investment

Gold price is going much higher

Art-Invests | Investment of Art

Gold price is getting back above USD 1,800 per troy ounce. Investors expect it will continue to move higher because it is unlikely the Federal Reserve will be able to fet the inflation under control.

The growth thread of inflation and stagflation are pushing more investors reevaluate their safe-haven hedge and rearrange their investment profolio.

The inflation the year is very different from the last few years. The current inflation is not being driven by consumer demand. Prices go up because of major supply-chain around the world especially the second largest economy, China.

There is nothing the Federal Reserve can do to fix the supply chain as the inflation is on the long side of the track. With gold prices back over USD 1,800 per troy ounce, the market will see bullish momentum very soon. 

Investment

The Story Behind The 1933 Double Eagle

Art-Invests | Investment of Art
The 1933 Double Eagle Coin.

Source: https://commons.m.wikimedia.org/wiki/File:NNC-US-1933-G$20-Saint_Gaudens.jpg#mw-jump-to-license


The change of design for American Eagle gold coin triggers me to study the history or development of the American gold coins. And there is a fascinated story about the Amercian gold coins development in 1933 – The most famous gold coin – The 1933 Double Eagle Gold Coin.

I believe that most people will remember that in 1930s, US was in the bank crisis. In 1933, in order to end the 1930s general bank crisis, US president Franklin D. Roosevelt issued an important executive order – Executive Order 6102.

This Executive order 6102 was about:

  • All persons are required to deliver all gold coins and all gold bullion products which owned by them to Federal Reserve Bank.

It made:

The 1933 Double Eagle: America’s last gold coin struck for circulation and the last gold coin that can be legally owned by an individual.

However, a number of 1933 Double Eagle Gold Coins were stolen or rescured before melting and those stolen coins found their way into the hands of collectors before later being recovered. Some of the 1933 Double Eagle Gold Coins were acquired by King Farouk of Egypt who was a professional collector of many things.

In 2002, one of the 1933 Double eagle was sold to an anonymous bidder at a Stacks Bowers action in New York for USD 6.6 million.

In 2021, the coins was sold for more than USD 18 million.

If one day, you discover this 1933 Double Eagle Gold Coin, remember its story behind this gold coin.

Investment

Political Influence of Chinese Government over Stock Markets

Art-Invests | Investment of Art

Tecent stock fell over 10% in Hong Kong stock market on Tuesday after Economic Information Daily – a business newspaper owned by Xinhua News Agency published an article about online game.

The article used the terms of “spiritual opium” and “electronic drug” to describe the harmful effects of oline gaming on children and teenagers. The analysis also pointed out that industries insiders and leaders should be vigilant about the harm of online games in young people and children.

Actually there was a massive sell-off for Tecent few days ago. This analysis of online games just a week after a big slumps of Chinese tech stocks. Last week, Tecent temporarily suspended new user registration for its WeChat messaging platform because of secutiy systems udpates. Investors believe its updates is due to compliance and regulation issues from Chinese government.

The recent incidents about Tecent also proof that Chinese tech giants have to keep a good relationship with Chinese Governemnt. And they have to fulfill more social responsibility when doing business in China. 

Investment

Robert Kiyosaki suggested: Buy silver bullion now to prepare for the next decade

Art-Invests | Investment of Art
Silver Bullions


The famous author of RICH DAD POOR DAD as well as a famous investor indicated the importance of buying silver bullion. In his opinion, silver is the most undervalued, lowest risk, and best investment of all assets classes. He said that he would invest in silver U.S. Eagles today, not tomorrow. However, he would stop accumulating silver when silver spot get over USD 40 per troy ounce.

Robert Kiyosaki believe that globel pensions collapase will be one of the biggest threats that we will see the next 10 years. He does not think the governments and central banks will know a clear perspective to respond to this massive multi-trillion-USD global crisis. 

He suggested that “If you have no gold or Silver, start accumulating today, and do not worry about price.” “I believe that when the panic hits, gold and silver will disappear from markets as prices climb.” He also pointed out.

Physical bullion products like gold and silver are very traditional investment tools and people use it for long long time. Let wait and see whether the wisdom and experience of older people will win the monetary games.

Let me know you thought.

Investment

Safe Heaven – Bullions Markets

Art-Invests | Investment of Art

When stock markets plunged around the world, buying bullions will be one of the ways to preserve your wealth.

Do you know that the bullions like gold and silver have a significately increase in the past two year? Bullions investments have not been in the spotlight before the pandemic, However, they are rising enormously during the pandemic till now.

Bullions will surely become one of safe heavens during the volatility of the stock markets. Furthermore, some analysts believe that once pandemic is over, ecomony activities will rebounce in the speed that we cannot imagine. They believe there will be a strong demand on Silver, Platinum and Palladium.

No matter you believe or not, buying bullions is a good way to diversify our investment portfolios. Remember the rule that do not put all your eggs in one basket.

Do you share the same idea with me? Let me know your thought.