Newsletters - Past Issues

A gold and bitcoin update April 4 2024

Gold, the so called “king of metals”, has left a lot of the retail investor’s radar screens since the advent of bitcoin and other so called “cyber coins”.

Don’t know if that’s a good thing or not but it’s definitely true. Not so much as the numbers are concerned, as gold seems to be on a new tear of late, breaking through the $2,000.00/oz. resistance level it had held for years and even its second resistance level of $2,200.00/oz.

Pressing up against the $2,300.00/oz. level as I pen this and up $40.00/oz. on April 2^nd, many someone’s are obviously spending their money on it, or should I say investing in it.

With bitcoin having garnered about 1.4 trillion in funds from investors, gold sports a whopping 14.6 trillion market cap.

I can’t really say for sure why gold is popping right now, but I suspect it is reacting likes it usually reacts, that is to say it sniffs out inflation, jittery markets, societal and political upheaval, and government printing presses gone haywire. We can comfortably say we definitely have most if not all the above in today’s day and age.

Golds price topped the $2,000.00/oz. level briefly in mid-2020, mid-2022 and again early in 2023, only to back off each time. Here we sit in the spring of 2024 and this break out appears a little different. It has vaulted past those three previous highs and is a near vertical line right now. At least it was at the time of this writing.

That said, as often happens, once I publically mention something, it sneers it nose at me and backs off. So goes the fun of a financial columnist.

Both bitcoin and gold are tracking upwards and something is afoot to garner such moves in what could be called “anti-dollar” plays.

Not a whole lot of investors out there invest in either bitcoin or gold. One could say both are bought by the fringy investor. That is to say perhaps the conspiracy theorists and those that distrust governments and the paper dollars they use. Or should I say abuse?

Right or wrong, no matter who buys such things like bitcoin and gold, there is a fair amount of people buying both of these right now, evident by the price rise of the two.

The U.S. government is the largest holder of bitcoin with over 200,000 of them in its coffers. But don’t get to excited thinking Washington is a fan. Its stash of tokens was seized from cyber criminals and the dark web.

Governments, including ours, do buy gold however. Held in various places around the country, Fort Knox is well known, rightly so or not, for containing a heck of a lot of the yellow stuff, as do other central bank vaults around the world. The U.S. is said to possess 8,133 metric tons and we really don’t know where all of it is kept.

Probably a good thing.

It is said central banks hold gold to offset inflation and impart a sense of trust to their currency. Since gold has no counter party risk, is no one’s promise to pay and cannot be artificially reproduced, it is regarded at least by some as the only “real money”.

Governments on one hand possess it, but bad mouth it at the same time some might argue. The theory is they want to own it but might not like if you do.

Of course this view is hearsay and the stuff of conspiracy theorists.

I say this because I read enough business news daily to make a normal person puke, and I rarely if ever see it recommended by the major investment houses, brokerage firms or main stream analysts.

I do see it mentioned around the outer edges of investment newsletters. Those written by what you might call the more radical analysts and the so-called doomsayers of the world.

Even if financial advisory firms do recommend it, it is not a common recommendation or holding that I come across.

In conclusion, most of the press in the past few years has covered much more about the bitcoin movement than the price of gold, however the recent move in gold is indeed an interesting phenomenon that I’ll keep a close eye on.

This article expresses the opinion of Marc Cuniberti and is not meant as investment advice, or a recommendation to buy or sell any securities, nor represents the opinion of any bank, investment firm or RIA, nor this media outlet, its staff, members or underwriters. Mr. Cuniberti holds a B.A. in Economics with honors, 1979, and California Insurance License #0L34249 His insurance agency is BAP INC. insurance services. Email: news@moneymanagementradio.com

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Happy New Year and those resolutions January 1 2024

With every New Year comes the proverbial resolution for many. Whether the resolution encompasses quitting a bad habit, tightening ones financial purse strings or looking to tighten ones waist belt, we have all sworn on the first of January that we would either say good bye or say hello to a change in our behavior.

I have made a few resolutions over my 60 or so years of coherent existence, but truth be told, I am not real big on them. Not that resolutions are a bad thing. Far from it. The turning of a New Year can be the stepping stone for a positive change in one’s life.

For me however, I am the kind of person that once I make up my mind a change is in order, I don’t wait for January 1st, I just do it. I think it’s the way my brain works. If I make a New Year’s resolution, and then break it, I spiral into a deep self-loathing. In some way however, if I break a promise made on some arbitrary date like April 12^th or whatever, it doesn’t hurt so bad.

That should tell you a little about myself. Mainly that I, like many of you, can break self-promises like a New Year’s resolutions on occasion, and when I do, that guilty feeling slowly creeps into your head, which is no Bueno for nobody. (Bad grammar I know but it sounded good).

That said, for many, New Year’s resolutions can go a long way in making positive changes in one’s life and if adhered to, can really make a difference, whatever the endeavor.

Weight loss might allow one to have a longer and healthier life, a more comfortable existence and possibly save money on the medical bills.

Quitting a bad habit like smoking or excessive drinking obviously has many benefits, both for the participant and perhaps even for his friends or family.

Many resolutions can revolve around a financial change of some sort and these types of resolutions can have many positive changes for the individual as well as their family, if they have one.

Usually money problems involve spending too much, not really being aware of where the spending is going, or not having enough money in the first place. Derivations around this area might include wanting to find new ways to make more money, whether it be working longer hours or working more efficiently, or even getting a new job or starting a business.

Whereas a resolution like losing some weight has the direct benefit of looking and being healthier, improving ones finances can have multiple benefits. Since a financial goal usually involves making more, spending less, or even saving a little more or starting a retirement account, adhering to a resolution that involves money can better a person’s life in many ways.

If financial improvements are successful, it can improve one’s self-esteem, allow more time to be spent doing things one enjoys, such as traveling or hobbies, spending more time with loved ones, or something as simplistic as being able to buy more stuff. In certain cases, accomplishing a financial goal could even mean just putting food on the table, or putting more food on the table.

Since the number one cause of marriage problems centers around finances, and with recent inflation biting into finances more and more, addressing financial challenges can save marriages and no doubt, one could even go so far as to save lives.

My wife and I, upon receiving a $750 PG&E bill one month, staunchly made and kept to a “Kill a Watt” program to reduce our power consumption. Successfully reducing our costs by about 20%, we not only saved money, we help save something far more grandiose. Our planet. And doing that no doubt improved, albeit in a small way, the health of those we share the planet with.

Now that’s a resolution we all could easily get behind.

In conclusion, the turning of the New Year can give us new hope, a new outlook, and a reason to assess where we are and where we want to go. If the turning of the year gives some people a reason to make a change, and helps them stick to it, all the better.

Happy New Year to all of you.

“Watching the markets so you don’t have to”

(end)

(As mentioned please use the below disclaimer exactly) THANKS (Regulations)

This article expresses the opinion of Marc Cuniberti and may not represent the opinions of this media outlet, its staff, members or underwriters (but probably does). Mr. Cuniberti holds a B.A. in Economics with honors, 1979, and California Insurance License #0L34249 and was voted Best Financial Advisor in Nevada County 2021. His insurance agency is BAP INC. insurance services. Email: news@moneymanagementradio.com.

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Kid in a candy store December 28 2023

Is the job market still on fire?

They say windows of opportunity close quickly. Nothing can be truer as it relates to the current job market.

I had three kids in college this year, and during CoVid, I encouraged them to apply for apprentice programs at the highest quality institutions they could find. I explained to them firms like banks, financial advisory firms, insurance companies, high tech companies and the like were clamoring for warm bodies.

Simply put, regardless whether potential workers were afraid of CoVid or sitting by the river contemplating their naval (as my dad used to say) few people wanted to work and companies were desperate to fill their many job vacancies.

Heck, even my local Bank of America shuttered its doors on certain days due to the lack of available bodies to man the teller windows.

Unlike decades before where the world was flooded each and every year with college grads viscously competing for jobs, these last few years reminded me of the proverbial kid in a candy store for those willing to set the alarm clock and get their butts out of bed and to a work desk somewhere.

I hammered on all three of my lovelies to hit the yellow pages (well nowadays the internet) and put their face in front of a hungry interviewer who was given the edict to fill the seat with a willing worker.

In fact, in my 45 or so odd years of working, I could not remember a time when it was easier to land a good paying job somewhere than during and right after the CoVid era.

In the past, a college degree in no way guaranteed you a job, even with a solid degree in a hard science, let alone those majoring in sociology or communications. Not knocking those degrees mind you, but they are two of the harder to employ degrees out of many on surveys of past graduates a few years into the workforce.

Not so during Covid.

Institutions of the highest caliber were more than eager to hire high school grads willing to work, and if you had a college degree, all the better. College grads have had a golden opportunity of not only getting a job, but getting a good job.

Fast forward to today and the employment picture is reverting back to where it was for decades. Graduates who sat back and took their time to grab a job may now be realizing that with inflation soaring and CoVid savings evaporating, grads by the ton are hitting the streets again looking for work.

The sobering news is that companies may not be hiring due to the slowing economy, and many are laying off workers as the worst inflation of 40 years takes a bite out of consumer demand.

From Reuters just last week comes the sobering news for graduates and non-graduates alike looking for work:

“U.S. job openings dropped to more than a 2-1/2-year low in October, the strongest sign yet that demand for labor was cooling amid higher interest rates”.

One of my sons has just graduated from U.C. Irvine and having to now spread his wings and pay rent in the Los Angeles, he has moved into the ranks of those looking for a good paying job and finding a time of it securing employment.

As dad warned him a few years back, an apprenticeship with a bank or advisory firm or some other high paying employer a year or so back would have likely solidified him into a great job now once graduated. Having waited however, he is now competing with many others in the same predicament: Too many graduates sans a parent paycheck needing work but finding fewer job openings.

In conclusion, the CoVid years was literally a once in a lifetime window where landing a job was a foregone conclusion as long as one wanted to work, which apparently not many did.

Now that times are harder and prices are higher and the economy doesn’t look to improve much anytime soon despite what the CNBC cheerleaders tell you, the job market has reverted back to where it was for so many years.

If you want a job, a good paying job, once again, you better have a sturdy pair of walking shoes and fast internet and be prepared to use them.

“Watching the markets so you don’t have to”

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