Young's World Money Forecast

Since 1978 With a 32 Year Vacation

Bessent: The Fed Must Change Course, but No Mention of Gold

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On Friday, Treasury Secretary Scott Bessent explained in an op-ed in The Wall Street Journal the dangers of the expanding responsibilities and power of the Federal Reserve. He noted the Fed's expanded powers granted in the Dodd-Frank Act, and that fifteen years afterward, the results of granting the central bank those extra powers have been disappointing. He wrote: Regulatory overreach compounds the problem. The Dodd-Frank Act dramatically enlarged the Fed’s supervisory footprint, transforming it into the dominant regulator of U.S. finance. Fifteen years on, the results are disappointing. The 2023 failure of Silicon Valley Bank illustrates the dangers of combining supervision and monetary … [Read More...]

Richard Young Reports: 50+ Years with Fidelity and Wellington

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I started in the institutional research and trading investment business at Model Roland & Co. on Federal St. in Boston in August 1971. Just up the street from Model were Fidelity Investments, and Wellington Management, both of whom I called on from my very first hours on the job. Over five decades ago, Ned Johnson, aka “Mister Johnson,” ran the show at Fidelity. At Wellington, Jack Bogle, “Mr. Mutual Fund,” had not yet left Wellington to start Vanguard.    My focus in the initial going was international research and trading, and remains so today all these decades later.  I still consider Fidelity and Wellington the industry leaders. Both firms feature great cultures, industry-leading … [Read More...]

Gold’s 50-Year Price Explosion

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Originally posted on July 27, 2020. Part I I was there from the start.  In early August 1971, I had just joined internationally focused research and trading firm Model Roland & Co. On 15 August 1971, President Nixon shocked the world by announcing that the U. S. would no longer officially trade dollars for gold. At that time, gold’s fixed price was $35/oz. By 1980, gold would hit an astronomical $800/oz. OK then, back to Model and the firm’s wonderful head partner Leo Model. From my first day onboard at Model, I started covering a bevy of major Boston institutional accounts.  I was 30 years old, and I would become friends with analysts, portfolio managers and traders at Wellington … [Read More...]

Would the Pat Buchanan Plan Work Today?

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In July 2014, I outlined for readers a plan by Pat Buchanan to end the corporate income tax. Pat’s plan, or one like it, could revolutionize the American economy. I wrote: Pat Buchanan suggests abolishing the corporate income tax and replacing it with a revenue-neutral 10% tariff on imports. Pat maintains that imports kill U.S. jobs and subtract from GDP. What, laments Pat, has our political class done to our once self-sufficient American Republic? Pat’s idea would give a huge boost to our economy. A flat 10% tax on corporate profits, personal income, and retail sales might face less severe headwinds in passing muster in Congress. Either concept would prove a valued tonic that all … [Read More...]

The Singularity Is Nearer: Ray Kurzweil

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Ray Kurzweil has been a leading developer of artificial intelligence for 61 years, longer than any other living human. I am reading his most recent book, The Singularity is Nearer: When We Merge with AI. The implications of artificial intelligence are immense, and Kurzweil is viewing the technology from the forefront in his position as Principal Researcher and AI Visionary at Google. The book's website explains: The world’s most renowned oracle of technological change shows how human minds will merge with AI within the next two decades and what this momentous transformation will mean for us all. One of the greatest inventors of our time, futurist Ray Kurzweil published his … [Read More...]

What Is Gold Telling Investors? And the Dow 30?

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Take a good look at my chart below of the Dow Jones Industrial Average (Dow 30) and the price of gold. You can see gold hitting new highs at $3,342/troy ounce, while the DJIA Index has fallen to 39,669 points, or a drop of about 11.9% since peaking on December 4, 2024.  Gold is in a secular bull market, and it will remain in a secular bull market until the world’s central banks stop printing excessive amounts of money and governments stop issuing excessive amounts of debt. One indicator of prospective returns in gold is the ratio of the Dow Jones Industrial Average to the price of gold. When the ratio is falling, gold is outperforming the Dow. Over the last 124 years, as portrayed in the … [Read More...]

The Power of Gold

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As the purchasing power of the American dollar has declined steadily since gold convertibility ended in 1971, the purchasing power of an ounce of gold is strong. The spot price of gold closed at an all-time high of $2,989 yesterday and crossed over $3,000 an ounce in trading today.  The purchasing power of gold is also near record highs, though it hasn't quite exceeded its peak during the hyperinflation of the 1980s.  Since 1913, the year the Federal Reserve was created, the purchasing power of the U.S. dollar has fallen by 96%. The purchasing power of a single ounce of gold over that same time period has more than doubled. That is no coincidence. Gold is a store of value—a wealth … [Read More...]

Good as Gold: Will Ron Paul Audit the Fed?

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The price of gold has reached new highs. In 2017 I wrote to subscribers: Since 1913, the year the Federal Reserve was created, the purchasing power of the U.S. dollar has fallen 96%. The purchasing power of a single ounce of gold over that same time period has more than doubled. That is no coincidence. Gold is a store of value—a wealth preservation vehicle. Gold won’t make you rich, but it also won’t make you poor. Gold is a currency. It can’t go bankrupt, lose its value because of poor management, accounting fraud, world war, or hyper-inflation. Investors who truly understand gold recognize that gold should be counted in ounces, not in dollars. Because while the dollar value of gold may … [Read More...]

Over Three Decades of Consistency

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Riding the yield curve and compounding decades of dividends. Practicing the faith of Ben Graham's margin of safety, and honoring the Prudent Man Rule. I still write daily. You'll find me on our family websites, so don't miss out. www.youngsworldmoneyforecast.com www.youngresearch.com www.richardcyoung.com www.yoursurvivalguy.com … [Read More...]

The Story of Roger Babson and the Great Depression

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After successfully predicting the crash that led to the Great Depression, Roger Babson was vilified as though he were its cause. At Doug Casey's International Man, Jeff Thomas explains the history of Roger Babson, founder of Babson College, which I attended. "[A] crash is coming, and it may be terrific. …. The vicious circle will get in full swing and the result will be a serious business depression. There may be a stampede for selling which will exceed anything that the Stock Exchange has ever witnessed. Wise are those investors who now get out of debt." The above words could easily have been stated by me or another of the (very) few others who currently predict the coming of crashes in … [Read More...]

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Richard C. Young & Co., Ltd.

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Disclaimer:

The information contained here is for informational and educational purposes only. It is not intended nor should it be considered investment advice or a recommendation of securities. Past performance is not a guarantee of future results. It is possible to lose money by investing. You should carefully consider your investment objectives and risk tolerance before investing.