The inflation is subsiding. How much longer?

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The newsletter is a roundup of financial news, investment status, and other financial trivia, giving you the insight you need to manage your money in any economic situation.


 

General overview

Central banks around the world are preparing to start or continue cutting interest rates this fall, ending a period of historically high borrowing costs.
Loose monetary policy will continue in 2025 as well.
Inflation in the euro area fell to 2.2% in August, which is the lowest level in the last three years.
The consequences of the past increase in interest rates will probably be felt most in 2025.

 

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Source: Freepik

 

Inflation is subsiding. Will we see deflation before inflation spikes again?

Since 2004, we have observed a trend of falling inflation expectations for a long time. After a big spike in inflation in 2021, inflation is now easing again. But the question is for how long? In the meantime, will we also see the deflation that arose for a short time in both 2008 and 2020?

 

Technology companies dependent on Nvidia

Microsoft, Amazon, Meta and Google are tech giants that depend heavily on Nvidia, using its chips to develop their artificial intelligence models. Billions of dollars are invested in this sector, which in turn significantly increases Nvidia’s profits. A large part of the investments of these companies is intended for the purchase of Nvidia products and services.

 

Poland is (still) buying gold

The National Bank of Poland (NBP) under President Adam Glapiński significantly increased its gold reserves in the second quarter of 2024, making it one of the biggest buyers of gold among central banks, along with India. The NBP recently added about 19 tonnes of gold to its reserves, reflecting a strategic move to strengthen the country’s financial security.

Polish President Glapiński also announced plans to further increase the share of gold in the NBP’s reserves, with the aim of making gold 20% of total reserves. Currently, gold represents about 14.7% of the bank’s total reserves, suggesting that it will continue to buy gold in the near future to meet this target. This strategic accumulation underlines the NBP’s commitment to improving financial stability and resilience in the global economic environment.

 

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Source: Freepik

An overview of gold returns

The yield of gold in the last 15 years in euros was 9.3%.

The yield of gold in the last year in euros was 21.2%.


An overview of silver returns

The yield of silver in the last 15 years in euros is 10.9%.

The yield of silver in the last year in euros was 21.2%.

 

 

 

The newsletter “Financial insights and trivia” does not constitute an investment advisory service. Its content does not constitute recommendations to buy or offers to buy, but is intended to inform the public about developments in the financial field. Past returns are not a guarantee of future returns. Please consult a financial adviser for advice.

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