Precious metals news

At the start of a new year, we're excited to announce new co-hosts to the Friday Gold Wrap Podcast: JD and Joel Bauman. In this episode, JD and Joel discuss recent gold price action and key factors affecting gold in 2024 such as interest rates and global elections.

While the world recently celebrated the United States for hitting a new record high in crude oil production, there seem to be some accounting irregularities at work.  How so?  Out of the blue, U.S. crude oil production began to surge in July, reaching a stunning 13.3 million barrels per day...

The typical surge in gold demand during the wedding season has not materialized this year, with a drop of up to 25% reported. Prices have soared beyond ₹63,500 per 10 grams, leading to reduced interest in gold jewelry for the season running from January 15 to mid-March. In contrast, diamond and colored gemstone jewelry, which utilize more durable and cost-effective 14 to 18 carat gold, as opposed to the 22-carat gold in pure gold jewelry, have seen increased demand, according to industry insiders.

The U.S. private sector hiring exceeded expectations in December, contributing to a robust jobs market in 2023. According to ADP, private payrolls increased by 164,000, surpassing the Dow Jones estimate of 130,000 and the previous month's revised 101,000. This growth indicates a tight labor market, with initial jobless claims also dropping in the last week of the year. Leisure and hospitality led the gains, adding 59,000 jobs and showcasing the highest annual wage growth at 6.4%. Other significant contributions came from construction and various service industries, while manufacturing and resources sectors experienced slight declines.

In the 14th Century, one ruler controlled over 2/3 of the world’s gold... and he wasn’t afraid to show it.

Bankruptcy filings in the U.S. saw an 18% surge in 2023, driven by higher interest rates, stricter lending standards, and the fading of pandemic-era financial supports. The total filings, which include both commercial and personal bankruptcies, rose to 445,186 from 378,390 the previous year, as reported by Epiq AACER. Notably, commercial Chapter 11 reorganizations jumped by 72%, while consumer filings also increased by 18%. Despite the uptick, the numbers are still below the pre-pandemic levels, with 757,816 cases recorded in 2019. Projections for 2024 indicate that bankruptcy filings are expected to continue their upward trajectory.

The US is on the brink of a debt disaster, spiraling into $33 trillion of debt. That is over 180% of GDP. 
The cause?
Skyrocketing government spending matched with insufficient tax revenues, leading to ever-deepening deficits.
The US Treasury is now low on credit and out of time.
Interest payments on this colossal debt have doubled since 2020, pushing the government into a corner. The Federal Reserve's 2023 decisions to raise rates add to the turmoil, and the US Treasury is running out of debt buyers. A recent Treasury auction turned chaotic, revealing a global decline in appetite for US debt. 
Our guest contributor asks the question of the hour: Are the chickens coming home to roost for the US Treasury?

With the start of the NEW YEAR, what's next for the Gold Price??  Not only will gold likely experience extreme price volatility with a new record high set in 2024, but we should also be prepared for a Retest to a lower level.  How low?  I explain this in my newest video update...

In this eye-opening video, Mike dives into the precarious state of the housing market, shedding light on why affordability has hit an all-time low.

In November, the U.S. saw a slight decrease in job openings, with the figure dropping to 8.79 million, the lowest level since March 2021. According to the Labor Department's Job Openings and Labor Turnover Survey, this represents a small decline of 62,000 openings, with the vacancy rate remaining steady at 5.3%. Additionally, hiring decreased by 363,000, reducing the hiring rate to 3.5%, and layoffs also fell by 116,000. This change brought the ratio of job openings to available workers down to 1.4 to 1, a significant reduction from the 2 to 1 ratio seen earlier in 2022. The reduction in job openings was particularly notable in transportation, warehousing, utilities, and leisure and hospitality sectors, while wholesale trade and financial activities sectors experienced increases.

As the world shifts towards electrification and away from fossil fuels, gold miners are increasingly turning their focus to copper, recognizing its critical role in building electric vehicles, wind turbines, and solar-power systems. Celebrating high gold prices, companies like Newmont and Barrick Gold are investing heavily in copper, with Barrick aiming to become a significant copper producer through developments in Pakistan and Zambia. Similarly, Newmont expanded its copper ventures by acquiring Newcrest Mining for about $15 billion. Other gold mining firms, such as Evolution Mining and Agnico Eagle Mines, are also making significant investments in copper mines. These moves indicate a strategic pivot by gold miners, as copper is often found alongside gold, and historically, its revenue has been used to offset gold production costs.

HSBC forecasts that commodity prices will remain high in 2024, driven by limited supply, increased demand from China, and the global energy transition. They expect an average price rise of 2% in 2024, followed by a 4% decline in 2025. Factors contributing to the high prices include China's growth recovery and ongoing supply challenges. Geopolitical risks and anticipated easing of monetary policy in the latter half of 2024 could further drive prices up, while a global growth slowdown poses a downside risk.

The Royal Mint experienced a 7% increase in investors in 2023, with gold prices hitting record highs in sterling terms. A majority of investors, 77%, engaged in the market through digital platforms like DigiGold or by buying fractional coins and bars. The Mint's buyback scheme also saw a 46% increase in payouts compared to 2022, marking a record high. This surge is attributed to investors' "flight to safety" mentality.

The U.S. gross national debt has hit a record $34 trillion, signaling upcoming political and economic hurdles in managing the country's finances. The Treasury Department's recent report highlights the growing tension in Washington, with the possibility of a government shutdown if an annual budget is not established. A temporary agreement, reached last June between Republican lawmakers and the White House, lifted the nation's debt limit until January 2025, averting a potential historic default.

The Federal Reserve faces a pivotal year, aiming to achieve a "soft landing" by curbing inflation without significantly increasing unemployment. In a notable development, inflation slowed to its lowest annual rate in two years, while unemployment stayed low, and consumer spending remained robust, despite the highest interest rates in over two decades. This progress has sparked optimism about a possible soft landing and discussions about reducing interest rates. The Fed has signaled intentions to start cutting rates this year, offering relief from high borrowing costs affecting the housing market and businesses.

Peter Schiff left a stark warning in his recent podcast: “2024 could be a horrible year for the dollar.” 
Here are 3 big reasons why Peter thinks inflation might rise even higher this year.

Industrial demand for silver is projected to increase by 8% to a new high of 632 million ounces in 2023. This surge is primarily fueled by investments in photovoltaics, power grids, and 5G networks, alongside growth in consumer electronics and vehicle production. This forecast was presented at the Silver Institute's Annual Silver Industry Dinner in New York City.

Only half of American credit card users believe they can fully pay off their December balances, as per the LendingTree Credit Card Confidence Index. This index hit an all-time low of 51% in December, down from 58% in November. Meanwhile, national credit card balances have soared to a record $1.08 trillion, with average interest rates reaching a 30-year high of 21%. The rise in debt, inflation, and interest rates is impacting consumer confidence, notes Matt Schulz, chief credit analyst at LendingTree. Additionally, a Bankrate survey indicates an increase in cardholders carrying month-to-month debt, and the average credit card debt per customer is now $6,088, up from the previous year.

As the new year begins, the U.S. grapples with a daunting $34 trillion federal debt, surpassing the country's annual economic output. This situation, a result of tax cuts by Republicans and expansive climate and health initiatives by Democrats, along with pandemic relief efforts, marks a significant shift from the previous decade. Once deemed manageable due to low interest rates and inflation, this debt is now viewed with increased concern. Moody's recent downgrade of U.S. debt outlook to "negative" and Treasury Secretary Janet Yellen's admission of potential sustainability issues underscore this change in perspective, echoed by economist Paul Krugman's call for serious deficit reduction.

Gold prices saw an upbeat start in 2024, fueled by investor optimism over a potential US Federal Reserve rate cut. The precious metal's spot price climbed 0.6% to $2,074.40 per ounce, marking a 13% increase in 2023 and its first annual gain since 2020. This surge is attributed to the market's expectation that the Fed will lower rates sooner rather than later. Market analysts point out that a continued slowdown in inflation and economic activity could further bolster gold's position, especially if Treasury yields drop and the dollar softens. The week is crucial for gold investors, with a focus on upcoming economic data, including US job openings and December non-farm payrolls, and the minutes from the last Fed meeting. These factors, combined with technical indicators, suggest that gold may retest support levels in the near term. Meanwhile, other precious metals like silver, palladium, and platinum also registered gains.