Tag: finance

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. 

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. 

Collections

The design for American Eagle Gold Coin – in God we trust. And in Gold we trust

Art-Invests | Investment of Art

The American Eagle Gold Coin is an officeal gold bullion coins of United States starting from 1986. It was produced by United States Mint. The composition of the gold coins included 91.67% gold, 3% silver and 5.33% Copper. Therefore, the fineness of this gold coin is just 22K.

The obverse of the gold coin depicts the figure of Lady Liberty. And the reverse design features a male eagle carrying an olive branch flying above a female eagle and her baby.

Let me tell you something special about American Eagle Gold Coins.

For the Eagle minted in 1986-1991, they are dated with Roman Numerals. And starting from 1992, US mint changed to use Arabic numerals for dating Gold American Eagle Coins. 

Here is the gold coin in 1990 with dated with Roman Numerals “MCMXC”.

And starting mid 2021, the reserve design of American Eagle Gold Coin changes again! It features a side profile of a Bald ealge.

The new design is stunning!                    

As the the new design is launching in mid of 2021, the collectors around the world will definitely collect the old designs of American Eagle Gold Coins especially the old design dated year 2021 and the those dated with Roman Numerals.

Collections

Why do Horseshoes mean Lucky?

Art-Invests | Investment of Art

I have received a very interesting coin recenetly. It is a coin in a horseshoe shape.

2021 Palau Lucky Horseshoe Antique Finish High Relief Silver Coin

Some people may see western people hang horseshoes over their doors of the buildings. Someone like me would like to ask the reason behind this little thing. Why horseshoes?

Let me share you a story about hanging horseshoes over the doors.

This story is about a hermit – St. Dunstan.

St. Dunstan was a very quite and humble hermit as well as skilled metalworker. He lived in a hut where near the church of St Mary.

One night, there was a Devil came to his hut as a woman. However, St. Dunstan vigilantly noticed that he was a Devil instead of a woman. He saw his cloven hooves beneath the dress he wore. Dunstan noticed that the Devil was limping on one of his cloven hooves. He pretended to offer a shoe to help the Devil. He then nailed a red hot horseshoe onto the Devil hoof. 

The Devil screamed and begged St. Dunstan to take it off. Of course St. Dunstan was not going to do it easily.

He said, “You have to make a promise that you will always respect the symbol of the horseshoe and never enter a building that is protected by the sign of a horseshoe.”

Nowsdays, people are still telling about this story to Children in England. And hanging horseshoes over their doors have become one of their tradional. Also, people have different preference about hanging heel up or Down.

Some says that if you hang the horseshoe like a shape of a cup, it means horseshoe fills with good luck, holding it for everyone who lives in that house. 

Some says that if you hang the horseshoe downward, it means good luck flows out from the horseshoe and onto all the visitors and family who come into that house.

Up or down? Which one do you prefer? Let me know your thought.

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

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.

Investment

The most stupid thing Didi did: Chose US stock market for its USD 4.4
billion IPO.

Art-Invests | Investment of Art

Just after Didi raised its IPO which valued nearly USD 68 billion in US stock marking on June 30 2021, Chinese government and Chinese Regulators blocked Didi on Chinese App stores and Chinese Market. It made Didi Global Inc. plunged below IPO price.

Didi is a Chinese ride-hailing company in Chinese and bases in Beijing which provide Chinese customers with taxi hailing, private car hailing and social ride-sharing services. Didi currently has around 550 million users and around 10 millions of registered drives over 400 Chinese cities.

Some analysts believe the crackdown of Didi in its home country means that Chinese government wants more control on Chinese big data as well as a new battlegrounds of US-China trade wars.

Didi is now facing scrutiny over its data security by Chinese regulators. This cybersecurity probe by Chinese regulators also bring out a very strong message to other China’s tech giants: Do not even think about listing in stock market outside China and Hong Kong, especially in US stock market.

For those Tech Giants business owners in China, running the whole business not just needs to be given business consideration, but also a nation security consideration and patriotism consideration.

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