Precious metals news

"Rich Dad Poor Dad" author Robert Kiyosaki warns that America's increasing debt, which rose by $240 billion in November, poses a significant risk to the country. According to U.S. Treasury data, the national debt escalated to $33.878 trillion by the end of November, marking a $2.46 trillion increase from the previous year. In an interview with Fox Business, Kiyosaki criticizes America's continual money printing, asserting it undermines the nation's financial stability.

Javier Milei, after his unexpected election victory, has committed to implementing strict austerity measures in Argentina. In his inauguration speech in Buenos Aires, the 53-year-old leader emphasized his intention to radically change the nation's economic course. His plan includes deep spending cuts aimed at reducing Argentina's massive public debt and combating soaring inflation, currently over 140%.

As global inflation concerns persist, central bankers from major economies, including the US Federal Reserve, the Eurozone, and the UK, face critical year-end decisions. With recent signs of softer inflation and economic slowdown, these banks are under pressure to consider shifting towards monetary easing. This situation challenges their earlier stance of maintaining higher rates for longer, as investors increasingly anticipate rate cuts in early 2024.

In 2024, central banks are expected to pivot from aggressive interest-rate hikes to reducing borrowing costs, marking a significant shift in monetary policy. The crucial factor will be whether upcoming inflation data allows for a swift enough policy change to mitigate the effects of previous tightening and prevent a severe economic downturn.

The "resilient" American consumer seems to be running out of gas.
Americans are still running up credit card debt but at a much slower pace. Meanwhile, borrowing for big-ticket items has cratered.
Total consumer debt rose by $5.2 billion in October, according to the latest data from the Federal Reserve. That was a relatively small 1.2% increase.

In November, China's consumer prices fell by 0.5% year-on-year, marking the steepest decline in three years and deepening deflation concerns. This drop, exceeding forecasts and previous months' trends, compounds existing economic challenges, including a property sector crisis, weak trade, and a slow recovery from prolonged Covid restrictions, amidst a backdrop of subdued consumer demand and historically low economic growth targets.

According to the latest non-farm payroll report from the Bureau of Labor Statistics (BLS) the US economy added 199,000 new jobs in November and the unemployment rate dropped to 3.7%. This was widely viewed as a "strong" jobs report. According to one mainstream analyst, the November employment data "portrays an economy that is easing toward a soft landing and is not on the brink of a recession."
Peter Schiff wasn't as impressed. He called it "just another hyped-up jobs report."

While I have been quite "Negative" on the entire Green Energy Industry, there is a short-term benefit that we can't overlook.  Due to the massive ramp-up of wind and solar power over the past decade, we've cut a great deal of potential coal and natgas supply...

Due to additional information & the excellent comments, I have provided a New Gold Market Update for All Members.  This includes the Dec 8th video update and one for today, Dec 10th.  Gold holders need to understand the present short-term lure of the Bond Markets to attract massive investor dollars....

Join Mike Maloney and Alan Hibbard as they discuss the biggest news in gold, silver, and the economy.

Gold is defying usual market trends by rising amidst increasing U.S. Treasury yields and Federal Reserve rate hikes, signaling potential economic disconnects. Geopolitical tensions and a gradual global shift away from the U.S. dollar further bolster gold's value. Central banks are set to buy record amounts of gold in 2023, reinforcing its strength in the market.

Gold's surge, despite cooling inflation, is attributed to the anticipation of US interest rate cuts in 2024, which lowers gold's opportunity costs and may weaken the dollar. A crucial factor is the increasing US federal debt, with a $1.7 trillion annual fiscal deficit and a rising interest bill, potentially leading to more debt ceiling raises and money printing.

Total demand for silver for use in Hydrogen Fuel Cell cars, trucks, vans, ships, barges, yachts, ferries, boats, and HVAC will be 10 Times Greater than silver in Solar Panels. By 2027, silver's use in hydrogen fuel cells is expected to be 10 times greater than its current use in solar panels. This significant increase is driven by a groundbreaking innovation that replaces platinum with silver, making sustainable energy solutions more accessible and efficient. This advancement is set to revolutionize industries, emphasizing silver's crucial role in promoting eco-friendly technologies.

The latest Commitment of Traders report shows changes in future positions by hedge funds and speculators across commodities, forex, and bonds as of November 28. During a week marked by a bond market rally and a weaker dollar, there was a general uplift in market risk sentiment. However, the commodity sector experienced broad losses, particularly in energy and grains, despite ongoing purchases in gold and silver.

Mongolia's central bank has bought 16.1 tons of gold in the first 11 months of this year, a strategy to bolster economic stability. With an average purchase price of 219,514.35 Mongolian tugriks per gram, this effort contributes to the country's foreign exchange reserves, which stood at $4.124 billion in the third quarter. After reaching a record $4.9 billion in April 2021, the bank aims to acquire at least 22 tons of gold by year-end, following last year's purchase of 22.9 tons.

The US is facing a grim economic outlook with stagflation reminiscent of the 1970s, characterized by rising prices, stagnant wages, and falling production. The current situation is exacerbated by a massive national debt, now over $33.8 trillion with a debt-to-GDP ratio of 120%. Despite hopes for Federal Reserve intervention, the likelihood of significant policy shifts to address these challenges seems slim. This scenario points towards either a deflationary crisis with widespread job losses or unchecked inflation, both outcomes fueled by the country's overwhelming debt burden.

The shift of key nations like Saudi Arabia and the UAE to trade oil in currencies other than the US dollar, notably the Yuan, signals a significant move towards global de-dollarization. This trend, driven by the BRICS alliance and reinforced by Russia's deepening ties with major oil nations, challenges the longstanding dominance of the US dollar in international trade.

It's not a good idea to argue about things you don't know anything about. Most people realize this — until it comes to economics. A lot of people argue economics from a position of ignorance. President Biden is one of those people. In this episode of the Friday Gold Wrap, host Mike Maharrey dissects a couple of comments Biden made last week and teaches some economics along the way. He also talks about the significance of gold's record-breaking week.

UMich inflation expectations for the coming year dramatically dropped to a low not seen since March 2021, signaling deepening economic pessimism. Despite a 13% rise in consumer sentiment, largely based on these deflated inflation expectations, the overall outlook remains bleak, well below pre-pandemic standards. This stark decline in inflation outlook, juxtaposed with a superficial boost in sentiment, poses a troubling conundrum for the Federal Reserve's policy .

US household wealth declined in the third quarter by the most in a year, falling by $1.3 trillion to $151 trillion, primarily due to a $1.7 trillion decrease in stock holdings, despite a rise in real estate values. Economic concerns, Fed rate hikes, and a retreat in the S&P 500 contributed to this decline. Elevated home prices persisted due to high mortgage rates and limited property listings, while consumer and business borrowing saw a significant slowdown, along with a decrease in state and local government debt.