Precious metals news

When I thought things couldn't get any more Bizarre, it seems that Doomberg now believes in the Energy Tooth Fairy.  Honestly, when I saw his Peak Cheap Oil Myth article, I fell off my chair.  This is my rebuttal to Doomberg, which I believe you will find quite interesting...

As of mid-November, only 60% of those with federal student loans due in October have made payments. The U.S. student loan debt exceeds $1.7 trillion, surpassing credit card and auto loan debts, with the average loan balance at graduation now around $30,000, up from $10,000 in the 1990s. Astra Taylor, co-founder of the Debt Collective, describes the situation where 40% of borrowers haven't paid as a "massive student debt strike."

Central banks globally are revising their economic forecasting methods after failing to anticipate the recent surge in inflation. The European Central Bank, the Federal Reserve, and the Bank of England were caught off guard by the inflationary spike, triggered by the end of COVID-19 lockdowns and further exacerbated by the energy crisis following Russia's invasion of Ukraine. These unexpected developments led to the worst inflation in decades. In response, central banks have implemented significant rate increases and are now conducting thorough analyses to understand their forecasting shortcomings. ECB President Christine Lagarde emphasized the need to move beyond traditional models and consider a wider range of factors in future economic predictions.

Several emerging economies are exploring commodity trade without the U.S. dollar to decrease their dependence on it. Countries like Russia and Iran, hindered by U.S. sanctions, have increased oil sales in alternative currencies, finding willing buyers in nations such as China and India, often at reduced prices. While less critical for other major commodity exporters, countries like Brazil, the UAE, and even Saudi Arabia are making moves to enable non-dollar trades. Natasha Kaneva from JPMorgan Chase notes a significant shift, with approximately 20% of global oil now traded in currencies other than the dollar. The trend is highlighted by a rise in major non-dollar commodity contracts, growing from just two between 2015-2021 to twelve in 2023, primarily involving Russian and one UAE seller. These figures refer to physical commodity transactions, not futures trading in financial markets.

In a groundbreaking move, lawmakers in Oklahoma and Missouri are pushing for legislation that could redefine gold and silver, not as commodities but as money. The proposed bills for the 2024 legislative session aim to abolish state capital gains taxes on the sale of gold and silver bullion. In Missouri, Representatives Doug Richey and Bill Hardwick, along with Senator William Eigel, have introduced bills HB1867, HB1955, and SB735, respectively. Similarly, in Oklahoma, Senators Shane Jett and Nathan Dahm have filed SB1507 and SB1508. The successful passage of these bills would not only eliminate capital gains taxes on gold and silver but also significantly reduce the investment cost of these precious metals.

The LBMA London Gold Price has broken its all-time record as 2023 draws to a close, marking a significant milestone in gold's rapid appreciation throughout the year. Opening at $1835.05 on January 3, the precious metal has seen a substantial gain of $232.10 or 12.65%, reaching new heights by the year's end. This remarkable surge represents a 633.7% increase since the start of the century, highlighting gold's enduring appeal as a reliable store of value. Ruth Crowell, CEO of LBMA, emphasized gold's role as the preferred safe haven for investors during times of economic and geopolitical instability. This record-setting achievement is part of a long history of gold pricing, dating back to the first London gold price auction on September 12, 1919, now known as the LBMA Gold Price.

Wells Fargo has added its voice to the chorus of experts forecasting a dramatic rise in gold prices, anticipating the precious metal to reach $2200 by 2024. This bullish prediction comes amidst a period of remarkable volatility and recent gains in the gold market. A significant factor influencing this upward trajectory is the anticipated series of interest rate cuts by the Federal Reserve in the upcoming year, a move that is expected to bolster gold's performance. The metal has already showcased its strength, having soared to an all-time high earlier in the month and briefly surpassing $2093, before settling at $2077. This forecast from Wells Fargo aligns with a growing consensus among financial analysts who see gold maintaining its momentum as one of the top investment assets, especially with the looming rate cuts by the Federal Reserve.

The real minimum wage is always zero.
Restaurant workers in California are about to find that out the hard way.

Peter Schiff recently appeared on the Commodity Culture podcast to talk about gold. He said that while gold has done relatively well this year despite significant headwinds, we haven't seen anything yet. Once the markets realize inflation is here to stay, gold will be off to the races.

Explore the world of precious metals with Ronnie Stoeferle and Mike Maloney as they delve into the historical performance and potential future gains of gold and silver.

The US is facing a critical financial challenge as its national debt escalates. Capital Group's analysis reveals that within the next five years, the US government's interest payments on this debt are poised to outpace defense spending. Economist Darrell Spence notes a concerning trend: if the debt continues to grow as projected by the Congressional Budget Office, annual net interest payments could skyrocket from below $500 billion to an astonishing $1.4 trillion by 2033. This shift underscores the urgent need for attention to the country's debt dynamics.

Many factors are pushing gold higher. And some charting analysts believe gold will soon reach $2,400. The analysis highlights gold's consistent performance over the past 50 years, maintaining its value against major government fiat currencies. It's suggested that the current economic landscape, marked by inflation, recession, geopolitical tensions, and an overvalued stock market, is ripe for gold's ascendancy. Key factors influencing gold's buy zones include price fluctuations, Asian market demand, COMEX trading activities, interest rate trends, and investor sentiment.

In a year marked by market volatility and a complex array of crises, precious metals, particularly gold, have emerged as a beacon of stability and growth. Steve Jones from The Royal Mint reflects on the challenging landscape of 2023, characterized by economic uncertainty, geopolitical tensions, and environmental risks - a scenario aptly termed the "polycrisis". Amidst the tumultuous markets, with even robust indices like the FTSE100 struggling, gold and other precious metals have proven their mettle as safe-haven assets. These commodities have attracted increased attention from investors seeking to safeguard and diversify their portfolios against the backdrop of global instability. This trend underscores the enduring value and strategic importance of precious metals in modern investment portfolios.

As 2023 draws to a close, a review of the commodity markets reveals a mixed performance across six major sectors. While the majority of sectors witnessed a decline, the soft commodities sector notably defied the trend. Highlighted by the significant price surges in frozen concentrated orange juice and cocoa futures, these commodities have emerged as the top performers of the year. This success is attributed to a combination of fundamental and technical factors that have influenced these markets, standing out in a year where regional production dynamics and varying conditions have played a pivotal role in shaping commodity outputs and prices.

Gold prices maintained stability in Asian trade, following a surge in December driven by expectations of early Federal Reserve rate cuts. Spot gold was steady at $2,064.84 an ounce, while February futures rose slightly. The optimism was fueled by the Fed's signals of pausing rate hikes and potential cuts in 2024, with markets anticipating a possible cut as early as March 2024 due to cooling U.S. inflation. Despite lagging behind risk-driven assets like stocks, gold is poised for strong gains in 2023, with further benefits expected in 2024 as U.S. interest rates decrease and global economic conditions worsen. Copper prices also rose, with moderate gains expected in 2023 and a stronger rebound anticipated in 2024 due to increased demand and supply constraints.

Oil prices have retreated from a one-month high, largely influenced by recent attacks on shipping routes in the Red Sea and the potential for wider geopolitical conflicts. Brent crude is trading near $80 a barrel after a significant rise, but faces volatility due to thin holiday trading volumes. The attack on the vessel MSC United VIII highlights the ongoing risks in key shipping lanes, despite efforts by the US and other nations to secure these routes. The situation is further complicated by tensions in the Middle East, including US strikes in Iraq and the ongoing Israel-Hamas conflict, which could escalate into a larger regional issue. Despite recent strengthening in timespreads, oil is still on track for its first annual decline since 2020, amid fears of a surplus next year and bearish technical indicators like the "death cross" in crude benchmarks. This complex mix of factors makes the oil market a critical area to watch in the coming year.

The Misery Index, a measure combining unemployment and inflation rates, suggests Americans should be feeling less miserable than they report. Created by economist Arthur Okun, this index gained prominence during the 1976 and 1980 presidential elections. In April 2020, the Covid crisis drove the Misery Index to its highest level in nearly four decades, but it has since fallen sharply due to cooling inflation and low unemployment, standing at 6.8 in November with unemployment at 3.7% and a 3.1% rise in consumer prices. Despite this improvement, consumer sentiment remains low. The University of Michigan's index of consumer sentiment only recently increased to 69.7 in December from November's 61.3, still below its pre-pandemic level of 101 in February 2020. This disconnect highlights a complex relationship between economic indicators and public perception.

In Eagan, Minnesota, The Open Door Pantry is experiencing unprecedented demand, indicative of the lasting effects of inflation on American lives. Despite 2023 marking significant progress in curbing high inflation, the cumulative impact of 33 months of rapidly rising prices has heavily burdened many, particularly those with lower incomes. This year has seen a record number of visits to food pantries across Minnesota and beyond, a stark reflection of the challenges faced by many households. The Open Door's Executive Director, Jason Viana, highlights how the benefits of rising wages have been nullified by persistent inflation, underlining the profound and enduring impact of these economic conditions on everyday Americans.

With most Economists and the Fed suggesting continued growth next year, one important indicator suggests quite the opposite.  Unfortunately, it seems that the U.S. Economy enjoyed its "Soft Landing" this year and is setting up for a Deep Recession in 2024...

Gold prices in 2023 have witnessed a significant 12% gain, a notable shift from the stagnant performance in 2022. This rise mirrors broader risk themes in the market, paralleling trends in stocks with a rally that persisted through the year, despite some pullbacks. As 2024 approaches, the focus shifts to the Federal Reserve's potential policy changes, especially in the context of the U.S. election year, which may induce further volatility in the gold market. The turning point for this bullish trend in gold occurred in Q4 of 2022, coinciding with the S&P 500 hitting a three-year low and market anticipation of the Federal Reserve easing its aggressive rate hikes. This period saw gold bouncing back from around $1650, fueled by speculation of policy changes. The optimism was reinforced following the December FOMC rate decision, where Jerome Powell hinted at possible rate cuts. Despite some retractions from other Fed members, gold's bullish movement remains evident, with the weekly chart highlighting its impac...