Precious metals news

Mexican President Andres Manuel Lopez Obrador's recent proposal to ban open-pit mining is causing concern within the mining sector, which is a significant contributor to the country's economy, accounting for 2.5% of its GDP. Industry representatives argue that the proposed ban, aimed at preventing new open-pit mining concessions, could lead to uncertainty and deter investment in this crucial sector. Mexico, being the leading silver producer globally and a significant producer of gold and copper, could face adverse effects from such a policy. Although the proposal is not expected to pass in the short term due to a lack of necessary congressional support, it has been endorsed by Claudia Sheinbaum, the frontrunner to succeed Lopez Obrador, as part of her campaign platform. This endorsement has intensified concerns about the future of mining investments in Mexico.

Oil markets are expected to stabilize in 2024, steering clear of the dramatic fluctuations experienced in previous years. This outlook is shared by two leading industry figures, International Energy Agency Executive Director Fatih Birol and Mercuria Energy Group CEO Marco Dunand. They predict a year of "moderate" oil prices, supported by a slowdown in global demand growth and an increase in supply, particularly from the Americas. Some analysts, including those from JPMorgan Chase & Co., are forecasting potential price surges in the coming months, especially as Brent crude maintains a strong position above $80 a barrel.

The Consumer Price Index (CPI) data for January revealed an unexpected surge, with core prices, excluding food and energy, climbing by 0.4% and surpassing many predictions. This uptick was largely driven by a 0.7% increase in core services, marking the most significant rise since September 2022. However, this spike in the CPI might not fully translate to the Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE) index. Key differences between these measures, such as the lower weighting of shelter costs and distinct calculations for medical care services in the PCE, mean inflation rates reported by the core CPI could remain higher than those shown by the core PCE index.

Wholesale inflation in the U.S. experienced an uptick in January, indicating persistent inflationary pressures within the economy. According to the Labor Department, the producer price index, which measures inflation at the wholesale level before it impacts consumers, increased by 0.3% from December to January, reversing a slight decline from the previous month. Year-over-year, this index saw a moderate rise of 0.9% in January. The ongoing issue of inflation has become a significant concern for the public and is playing a critical role in President Joe Biden's re-election campaign. Despite measures of inflation decreasing from their peak and approaching the Federal Reserve’s target, the average prices remain significantly higher than when President Biden assumed office, with a roughly 19% increase, causing frustration among many Americans.

According to the EIA for 2024, the U.S. plans to install double the amount of solar power it did last year and increase total battery storage capacity by 50 percent.  More than 80% of new Electric-Generating Capacity added to the U.S. Grid will come from solar and battery storage...

Mike's conversation with Rick Rule delves into the dynamics of market capitalizations, potential recessions, and the impact of taxes and inflation.

Japan has relinquished its position as the world's third-largest economy to Germany, sliding into recession amid challenges such as a depreciating yen and demographic issues like an aging and decreasing population. Despite achieving a 1.9% growth in 2023 in nominal terms (not adjusted for inflation), Japan's Gross Domestic Product (GDP) in dollar terms amounted to $4.2 trillion, falling short of Germany's $4.5 trillion. The depreciation of the yen, which saw nearly a fifth of its value eroded against the dollar over the last two years—including a 7% drop last year alone—has been a critical factor, as it diminishes the value of repatriated earnings from exports.

Gold surpassed the $2,000 mark, following disappointing U.S. retail sales figures that led to a decrease in the dollar value and Treasury yields. This turnaround in the market has been a positive development for investors in gold, with the price of spot gold reaching an intraday high of $2,008.18 per ounce. Despite a slight pullback, gold managed to maintain its position above the $2,000 threshold in a fluctuating market environment. The upcoming release of the U.S. Producer Price Index (PPI) is eagerly awaited, as it is expected to shed light on the current state of inflation and potentially influence future interest rate decisions.

Home prices in Florida's southwest coast are dropping, primarily driven by the steep rise in home insurance costs. This insurance crisis has led to a surge in inventory as potential buyers, particularly those looking to purchase winter homes, are deterred by the skyrocketing premiums. The Insurance Information Institute reports a 42% increase in insurance rates last year alone, placing the average insurance cost for Floridian homeowners at $6,000, in stark contrast to the national average of $1,700.

U.S. Treasury Secretary Janet Yellen argues that minor fluctuations should not distract from the significant longer-term trends of decreasing inflation, a strong economy, and rising wages. Speaking at the Detroit Economic Club alongside Michigan Governor Gretchen Whitmer, Yellen expressed confidence in the economic trajectory, labeling market reactions to short-term data as a "tremendous mistake" and urged a focus on the overall downward movement of inflation.

In late 2023, federal regulators highlighted concerns over approximately two dozen U.S. banks with major concerns over their commercial real estate loan portfolios. These banks, noted for accumulating commercial property loans that exceed three times their total capital, are now under the microscope for their large exposures to commercial real estate sectors such as office buildings and retail spaces.

The yield curve has long been a signal of potential financial market turbulence. But this last year, it missed the mark. Now, there's a shift in the markets. Longer-term yields rising more than shorter-term indicates worsening conditions in liquidity and funding markets that are vital for the market's health.

Federal Reserve Governor Christopher Waller emphasized the U.S. dollar will remain the world's reserve currency, despite speculation about its potential decline. In his address at a conference, Waller acknowledged various factors that could threaten the dollar's status, including sanctions against Russia, U.S. political challenges, the emergence of digital assets, and China's promotion of the renminbi. However, he argued that these issues have not significantly impacted the dollar's prominent role in global economics.

In a bold move to revive their economy, Zimbabwe has announced plans to launch a gold-backed currency. Will they succeed?

This week saw a significant increase in mortgage rates, pushing past the 7% threshold and dampening the enthusiasm of potential homebuyers. The rise in rates comes amid persistent high inflation, challenging the previously held optimism for a Federal Reserve rate cut in time for the spring buying season. Specifically, the average rate for a 30-year fixed mortgage climbed from 6.97% to a peak of 7.13% on February 13, as per Mortgage News Daily, before settling at 7.03%. This upward trend in mortgage rates is making entering the housing market harder than ever.

Boston is facing a significant challenge as the city anticipates a tax revenue shortfall exceeding $1 billion in the next five years due to the depreciating office real estate market. This forecast stems from a collaborative analysis by Tufts University’s Center for State Policy Analysis and the Boston Policy Institute, drawing on a McKinsey & Co. projection of a potential 30% reduction in office property values by the decade's end. The city's heavy reliance on commercial property taxes exacerbates the situation.

The silver price has dipped since December, from almost $26 per ounce to around $22 today. We reported on silver being a relative bargain at the time, and with lower spot prices and an even higher gold/silver ratio today, gold’s monetary sibling is looking like an even more attractive buy than it was late last year.

The cryptocurrency market has seen a significant resurgence, with its total value surging back above the $2 trillion mark. This rally was led by Bitcoin, which is currently trading around $52,000, and Ether, which has recovered to its value prior to the TerraUSD stablecoin collapse nearly two years ago. Bitcoin's impressive year-to-date gain of almost 25% has been a major factor in elevating the digital asset market's capitalization to this milestone level for the first time since April 2022, according to data from CoinGecko.

the Central Bank of Ireland notably doubled its gold reserves in 2022, expanding its holdings from six to twelve metric tonnes. This strategic decision, articulated by then Finance Minister Pascal Donohoe, was aimed at diversifying the bank's long-term investment approach to enhance the resilience of its balance sheet. This move underscores the role of gold as a key component in safeguarding financial stability amidst the volatility of modern investment avenues.

Stanley Druckenmiller's Duquesne Family Office has made significant adjustments to its portfolio, as revealed in a recent SEC filing. Druckenmiller's firm divested its holdings in tech giants Alphabet Inc., Amazon.com, and Broadcom Inc., while making a notable pivot towards the precious metals sector, Duquesne has invested in gold mining companies Barrick Gold Corp. and Newmont Corp., which have been undervalued in recent times.