Precious metals news

The Bank of England has issued a warning about the vulnerabilities in the private credit and leveraged lending markets, citing risks of "sharp revaluations." The Financial Policy Committee highlighted significant challenges due to high interest rates, persistent inflation, and uncertainties about long-term economic prospects. BoE Governor Andrew Bailey emphasized that these riskier corporate borrowing sectors are especially susceptible under the current conditions.

Moody's Investors Service downgraded its outlook for eight Chinese banks, including Industrial and Commercial Bank of China Ltd. and China Development Bank, to negative from stable. This follows Moody's recent bearish outlook on China’s sovereign bonds, influenced by concerns over high debt levels. The banks' outlook change is mainly due to the negative shift in the government's credit ratings.

Gold's Remarkable Surge: A Golden Opportunity in the Making. Gold's impressive climb from $1,831 to a record $2,091 per ounce showcases a robust bull market, perfectly synchronized with dropping Treasury rates. Holding firmly above $2,000, gold's outlook is exceptionally bright, promising significant gains for investors as this trend continues. This is a prime investment opportunity, with gold's value poised for even greater heights.

The flow of metal out of gold-backed ETFs slowed significantly in November, with North American ETFs charting gold inflows for the first time in five months.
A total of 9 tons of gold flowed out of ETFs globally, but total assets under management increased by 2% thanks to the rise in the price of gold.

Fed in Wait-and-See Mode: Balancing Rate Hikes with Economic Health. Since March 2022, the Fed's 5.25% rate increase has slowed inflation but raised concerns about a potential economic downturn. The strong labor market contrasts with recession fears, suggesting the Fed might pause rate hikes. Futures markets anticipate this pause to last until at least March 2024, with potential rate cuts thereafter. This creates a complex environment: stocks have risen on rate cut hopes, but investors should be wary. Bond investors, however, may find opportunities during this pause.

ADP's November jobs report is alarming, revealing only 103k jobs added, far below expectations and marking a significant downturn. Manufacturing and hospitality sectors are particularly hard-hit, the latter losing jobs for the first time since early 2021. Wage growth is also at its lowest in over a year, amplifying recession fears and casting doubt on the stock market's current resilience. This stark data challenges the optimism for future rate cuts.

Global debt is expected to reach $97.1 trillion in 2023, marking a significant 40% rise since 2019. The COVID-19 pandemic prompted governments to implement major financial interventions to support employment and avert widespread bankruptcies, but these measures have revealed weaknesses. Now, with rising interest rates, the cost of borrowing is intensifying, highlighting the increasing burden of this debt.

The renminbi has made significant strides in 2023, despite depreciating against the US dollar earlier in the year. Its share in global payments increased from 1.9% in January to 3.6% by October. This growth highlights the currency's expanding role in international transactions, as reported by the People’s Bank of China, marking a positive development in its global use.

Bank of Japan Deputy Governor Ryozo Himino hinted at ending the negative interest rate policy, exploring possible effects of transitioning to positive rates. While affirming commitment to monetary easing until achieving inflation targets, Himino examined impacts of withdrawing from extensive stimulus, referencing past experiences of negative rates.

Peter Schiff recently appeared on the Claman Countdown with Creative Planning president Peter Mallouk to talk about the recent record high in gold and the trajectory of the markets over the next few months.
Mallouk is bullish on the stock market, but Schiff makes the case that this is gold's day.

The prevailing belief that government debt is a "free lunch" due to low interest rates is being challenged as interest rates rise. This shift highlights the risks of high government debt, including increased interest payments and inflation. The assumption that interest rates would remain low indefinitely is proving incorrect, forcing a reevaluation of fiscal policies and the real costs of debt.

(Global bond markets are surging due to expectations of central banks, like the ECB and the Federal Reserve, easing monetary policies next year amidst reducing inflation concerns. Investors are now betting on potential rate cuts starting as early as early 2024, leading to a significant bond rally as the year concludes. This marks a notable shift from earlier hawkish stances.

In China's Sichuan Province, archaeologists have unearthed over 70,000 artifacts from the 17th century, including gold and silver, linked to the warlord Zhang Xianzhong. His sunken treasure, a result of a failed rebellion against the Ming Dynasty, has been discovered in the Min River. The finds from Zhang's fleet, including significant historical and cultural relics, offer insights into the era's social turmoil and Zhang's controversial rule. This discovery aligns closely with historical accounts of that tumultuous period.

In October, central banks globally added a net total of 42 tonnes to their gold reserves, continuing a robust buying trend. The People’s Bank of China was the largest buyer, significantly increasing its reserves, followed by the Central Bank of Turkey and the National Bank of Poland. Despite higher sales volumes from countries like Uzbekistan and Kazakhstan, the overall trend of strong central bank gold buying remains unaltered, reinforcing gold's positive outlook in the global market.

Gold reached a new record high of $2,111, buoyed by its status as a traditional safe-haven asset and expectations of U.S. rate cuts. A weaker dollar has also made gold more attractive to non-dollar buyers. Notably, non-aligned and BRICS nations have been increasing their gold reserves while selling off U.S. treasuries. Gold's long-term performance, its 3000% rise over the last 50 years compared to stocks, and its resilience during financial instability make it a compelling component of a diversified portfolio. With ongoing geopolitical tensions, rising national debts, and political uncertainties, gold's role as a stable, decorrelated safe-haven investment is more relevant than ever in today's uncertain financial landscape.

U.S. service sector activity showed a slight uptick in November, yet hiring significantly slowed, marking the weakest employment growth since October 2022. Businesses are cutting costs by reducing hiring, hinting at a potential downturn in November's job numbers. Upcoming labor reports are anticipated to reflect this slowdown, with modest payroll increases and a steady unemployment rate. The surv

Agility Robotics' upcoming RoboFab facility in Salem, Oregon, set to mass-produce humanoid robots, signals a worrying trend in automation. With plans to produce 10,000 robots annually, this development underscores concerns about the increasing replacement of human labor in warehouses and other industries. China's similar ambitions to mass-produce humanoid robots by 2025 further highlight a global shift towards automation that could have significant negative implications for employment and job security.

The U.S. economy's reliance on Federal Reserve money printing is evident in the job market. According to the U.S. Bureau of Labor Statistics, job openings decreased to 8.7 million as of the end of October, with hires and separations remaining relatively stable. A notable correlation exists between the Fed's balance sheet and job openings: as the Fed expanded its asset purchases in 2021 and 2022, job openings increased. However, with the Fed beginning to reduce its balance sheet, job openings started to decline, suggesting a dependency of the job market on the Fed's monetary policy.

Henry Kissinger's recent passing highlights his role in creating the 1974 "Petrodollar Accord," stabilizing the U.S. dollar by tying oil sales to it. However, this system faces challenges as BRICS nations and others move away from dollar-based trade, potentially weakening the dollar's global position. With these shifts, investing in gold could be a strategic response to anticipated changes in the global monetary system.

The risk of a global recession is escalating, marked by increasing economic warnings and financial instability. Analysts like Lance Roberts highlight key recession indicators, including yield curve inversions and Federal Reserve actions. Manufacturing surveys and the Fed's Beige Book report further indicate a downturn, with declining activity in key sectors. These factors collectively point toward a looming deep recession in the global economy.