BRICS’ Ambitious Plan for a Currency Backed by Gold
From the much-awaited BRICS Summit down in South Africa to a jaw-dropping 30-year mortgage rate of 7.49%, this week was like a financial rollercoaster for the world and our wallets.
But what’s the deal with these changes?
What’s their impact on the future of shiny precious metals?
Buckle up, let’s jump in…
💵 Warren Buffett Shakes Things Up
Berkshire Hathaway made headlines as they revealed their first quarter of 2023. The scoop? They sold a whopping $13.3 billion worth of shares, while buying $4.4 billion in repurchasing its own stock, and put $2.9 billion into the shares of other publicly traded businesses… For many, this move by Buffett, a legend among investors, spells uncertainty in the markets.
💲 The Dream Salary
Fresh data from the Federal Reserve Bank of New York paints a vivid picture. American workers are now aiming high with a starting salary expectation of a record-breaking $78,645 as of July. This is a significant jump from the figures seen in July 2022 of $72,873 and $62,194 in July 2019 before the pandemic.
📉 Inflation Takes a Breather
While the scars of past inflation still linger, there’s good news. Inflation, measured as the Consumer Price Index (CPI) year-over-year, is on a slide. From a worrisome 9.1% in June 2022, it has eased down to 3.0% in June 2023, creeping closer to the Fed’s 2.0% target.
📈 Golden Year
The World Gold Council reports that 2022 was a golden year indeed, with a remarkable 18% surge in total gold demand. This is the strongest demand since 2011, and it’s driven by four key factors: investment, industry, central banks, and jewelry. Investment demand, in particular, stands strong, offering flexibility.
💰 Gold & Silver Shine Bright
Gold and silver may not always steal the spotlight, but the numbers tell a different tale. Since 1971, the price of gold has soared 40+ times in U.S. dollars, while silver has seen an impressive rise of over 15 times. These “unsung heroes” prove their worth in long-term investment.
So, amidst the market shifts and financial whirlwinds, precious metals seem to maintain their shine. Keep an eye on these trends, and remember, in the world of finance, there’s always an opportunity for those who dare to dive in. 💪🌟
Navigating the Home Affordability Maze: A Tale of Mortgages and Dreams
If the thought of owning a home feels like a far-off dream, you’re not alone. The journey to home ownership has become a steep climb for many. According to the latest scoop from the National Association of Home Builders (NAHB), only 40.5% of homes sold in Q2 2023 were within reach for families with a median income, pegged at $96,300 based on the regular mortgage rules.
But how does the NAHB figure out this “affordability”? They bring out the NAHB/Wells Fargo Housing Opportunity Index (HOI). This magic tool calculates what percentage of homes a typical local income family can handle. The math relies on standard mortgage criteria and assumes that families can shell out 28% of their earnings for housing costs — a standard deal in the lending world.
Just three years back, around two-thirds of homes were in the “affordable” zone for median income families. But a blend of sky-high demand and short supply has set prices rocketing, making the dream of home ownership feel like a distant star for countless Americans.
30-Year Mortgage Rates: Unveiling the Facts
Hold onto your hats for this one. The NAHB index tackles three key players: home prices, mortgage rates, and incomes. Home prices might have had a slight dip since their peak in 2022, but they’re still perched high up. In Q1 2023, the median home price proudly waved the flag at $388,000, up from $365,000 in the last quarter.
But here’s the real star of the show… mortgage rates. Brace yourself for this newsflash. The average 30-year fixed mortgage rate sprinted to a heart-pounding 7.49% this week, as reported by Mortgage News Daily. This number hasn’t seen the light of day in two decades.
When mortgage rates go sky-high, their waves ripple far and wide. These towering rates discourage folks from diving into new home deals or refinancing. The housing market pumps the brakes, and this slowdown affects cousin industries like construction, home upgrades, and even how much we spend as homeowners grapple with bigger monthly bills.
And wait, there’s more…
These towering mortgage rates could sharpen the gap between the haves and have-nots, especially hitting first-time buyers and those without deep pockets. Mix in the soaring construction costs, and you’ve got a cocktail that’s making the dream of home ownership seem like a distant mirage for many.
BRICS Summit in Johannesburg: The Power Play Unfolds
Get ready for some globe-trotting updates! Our spotlight is locked on the BRICS summit in Johannesburg. Five big shots — Brazil, Russia, India, China, and South Africa — have gathered for a powwow, talking expansion and maybe even a new currency.
Remember, 14 years back, when the BRICS alliance was fresh off the press?
Who could’ve guessed that it would be hogging the global stage today?
These five amigos make up 40% of the world’s population and a hefty chunk of the global economy. But wait, a parade of other countries, like Argentina, Nigeria, Iran, and a bunch more, want a piece of this action too.
Diving into the Expansion Debate
Guess what’s brewing at this summit? They’re playing the expansion card.
China’s got eyes on amping up its global game. Russia, somewhat lonely due to its Ukraine standoff, might just give it a nod.
But guess who’s the cheerleader?
It’s South Africa, inviting over 30 African nations to join the BRICS Alliance.
But hold onto your speculation hats. Brazil and India might want to tip-toe into expansion, given their cozy relationships with the industrial bigwigs.
Is the BRICS Currency Challenging the Dollar Dynasty?
Now, here’s a tasty nugget from the summit. The BRICS gang is cooking up something spicy — crafting a new currency, perhaps backed by the Midas touch, aka GOLD. It’s still in the recipe testing phase, but if this dish makes it to the table, it could tango with the U.S. dollar. As of now, the dollar rules oil trading (almost 100%) and currency trading (about 90%).
If this new currency waltzes in, it could turn the tables on the financial dance floor, impacting everything from the U.S. to every corner of the world.
Stay Tuned, The Plot Thickens…
What’s next for the BRICS band at this summit?
Keep your popcorn handy, because the next chapters are on their way. We’re glued to the pages of this evolving story, watching every twist and turn that could send ripples around the globe.
Catch you this time, next week, as we continue our journey watching this epic transition! 🚀🌍
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