Precious metals news

Over 34 million Americans, including nine million children, are grappling with food insecurity. A recent US Census Bureau survey indicated that in a 12-day study period, over 26 million people couldn't afford sufficient food, marking a nearly 50% rise from 2021, partly due to the cessation of pandemic-era aid. A parallel Feeding America report detailed the pandemic's enduring impact on hunger. It highlighted that 80% of those facing hunger attribute it to inflation and soaring food prices, with 93% fearing worsening conditions. Primary causes included high housing costs, unemployment, health issues, and prevalent low-wage jobs.

U.S. businesses faced significant challenges in 2023, with commercial Chapter 11 bankruptcies rising by 61% to 4,553. Small business filings increased by 41% to 1,419. Overall, commercial sector bankruptcy filings grew by 17% to 18,680. Consumer filings also saw a 17% hike, reaching 313,458, despite previous declines due to pandemic-era financial aid.

The sell-off in precious metals continued as bond yields continued to rise and a strong dollar persisted. In early trade in Europe this morning, gold was $1822, down another $26, unchanged on the year. Silver traded at $21, down $1.17. Comex volumes in both metals declined from good levels, indicating that selling pressure is declining.
Comex deliveries in both metals increased in volume, reflecting the end of the October contract. Including last Friday, 8,735 gold contracts stood for delivery in the last five business days, representing 27.17 tonnes, and 334 silver contracts representing 52 tonnes. This persistent demand for delivery is becoming a must-have source for those turning paper gold and silver into bullion, with 338.25 tonnes of gold and 3,514 tonnes of silver delivered this year so far.
Driving gold and silver lower have been persistently rising bond yields taking markets by surprise. The chart below of the US Treasury 10 year note yield is remarkably bullish — u...

Despite warnings, pundits like Matt Yglesias in the mid-2010s encouraged excessive government borrowing due to low-interest rates. Under subsequent administrations, this led to the U.S. national debt surging past $33 trillion. Today, as U.S. Treasury bond yields skyrocket, the reckoning is apparent: skyrocketing debt rollovers strain the federal budget, and the economy teeters. Ignored cautionary advice now jeopardizes our financial stability; the past's fiscal irresponsibility is catching up.

Signs of an impending financial downturn are emerging, highlighted by the behavior of the yield curve. While some experts remain unconvinced of a looming recession, rising Treasury yields and falling bond prices suggest economic instability. Recent data shows a decline in job creation and market volatility. The shift towards higher interest rates could trigger financial and economic crises, particularly impacting the housing sector. The era of low interest rates and monetary stimulus appears to be ending

The euro is facing its twelfth consecutive week of decline against the strengthening dollar. This is the longest streak since the euro's introduction in 1999. The dollar's surge is backed by a sell-off in U.S. government bonds and strong economic data, among other factors.

Despite the bond yields negatively impacting the stock market, Bill Gross believes it's insufficient. He suggests the market is overvalued and warns that stocks might underperform in an impending economic downturn. Gross is skeptical about the Fed's capacity to manage inflation, which remains above the target.

The fixed-income market is facing what Bank of America Global Research labels the "greatest bond bear market of all time." Yields on 30-year Treasuries have surged above 5% for the first time since 2007, alarming investors. Despite these unsettling trends, Bank of America strategists remain bearish on risk assets, anticipating a hard landing due to rising, prolonged interest rates, suggesting the bear market's end is not in sight.

Surging bond yields have heightened concerns over the Federal Reserve's stance and rising U.S. government debt. The yield on 10-year Treasuries recently hit a 15-year high, surpassing 4.8%. As the Fed signals further rate hikes, the national interest on debt is ballooning. By 2033, interest payments could surpass $1.4 trillion annually. Experts warn of an impending unmanageable budget situation if unchecked.

In September, the US added an impressive 336K jobs, doubling the forecasted 170K and marking the highest monthly increase since January. This was a notable deviation from expectations, marking the first 6-sigma beat in a while. Additionally, both July and August saw upward revisions in job numbers, with a combined increase of 119,000 more than initially reported. While the unemployment rate remained at 3.8%, average hourly earnings rose by 0.2%, reflecting a yearly increase of 4.2%. This rise was attributed to an influx of lower-paying jobs.

The mainstream wasn't just wrong about inflation in 2020. It was wildly wrong. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey dissects a 2020 video produced by CNBC to show just how wrong they were. He explains why they were wrong and teaches some economics along the way. He also discusses the carnage in the bond market and tells you who is buying gold.

With more information coming out and confirming our suspensions, the Nails continue to be added to the U.S. & the Global Oil Industry Coffin.  Using newly updated data from a retired petroleum engineer from Total France, the situation does not look good for the USA and the world...

In August, central banks continued their trend of bolstering gold reserves, marking the third consecutive month of such acquisitions. With a substantial 77t addition, a 38% increase from July, it's evident that central banks globally are leaning into gold as a strategic asset. This consistent demand reinforces the ongoing trend and confidence in the enduring appeal of gold for central banks.

In 2023, gold prices faced a decline, dropping over 10% in six months due to rising interest rates. However, experts at the FT Mining Summit expressed optimism for gold's rebound once the Federal Reserve begins reducing interest rates. John Reade from the World Gold Council believes the current situation offers a prime opportunity for gold investment, predicting rate cuts by the Fed to benefit gold prices. Rhona O’Connell, a market analyst, emphasizes the challenges faced by medium-sized banks, suggesting that potential economic stresses in the U.S. will boost gold investments. The mining industry also showed concerns about insufficient exploration for new mines, indicating a future scarcity that could further elevate gold's value.

In 2023, a significant shift was observed in the retail landscape as gold products solidified their preeminence in inventories compared to past years. Heritage gold, along with Hard-Pure products, not only took center stage in retail showcases but also became the primary profit drivers for businesses. This surge in gold's prominence underscores its timeless appeal and growing market demand.

Russia's Finance Ministry is ramping up its foreign currency and gold acquisitions, allocating 398.72 billion rubles for purchases from October 6 to November 7. This marks a substantial increase from previous allocations, emphasizing gold's significance in Russia's financial strategy. The sustained commitment to gold purchases highlights its enduring value in the economic landscape.

The 30-year bond is experiencing a significant selloff reminiscent of the 2007-2009 financial crisis. Driven by concerns over the U.S. deficit and the Fed's anti-inflation stance, bonds from 2020 have dropped by over 50%. Major holders like the Federal Reserve, Vanguard, and BlackRock are particularly impacted. This downturn signals potential systemic vulnerabilities in the financial system.

In this eye-opening video, Mike Maloney delves deep into the claims made by the “Inflation Misinformation Foundation” (IMF) regarding inflation. Join Mike as he dissects their arguments and provides an alternative perspective on this crucial economic topic. Discover how inflation truly works and why government policies play a significant role in its dynamics. Mike also discusses the impact of low interest rates on your savings and borrowing costs. If you're seeking a fresh perspective on inflation, this video is a must-watch.

The FDIC has sounded alarm bells over the concentration of uninsured deposits in a few major U.S. banks. FDIC Chair, Martin Gruenberg, highlighted that some recently failed banks had up to 90% of their deposits uninsured. Disturbingly, JPMorgan Chase, Bank of America, Wells Fargo, and Citibank hold 59% of all uninsured deposits across all 4,645 federally-insured institutions. Particularly, Citibank revealed that a staggering 85.5% of its deposits are uninsured. The precarious concentration of uninsured deposits is a ticking time bomb.

The Fed's oversight in not equating rising home prices with inflation has resulted in a distorted housing market. Despite wages rising, home prices have surged disproportionately, making them about 46% overpriced. The massive QE rounds by the Fed, intending to stimulate inflation, suppressed interest rates, leading to a housing market affordability divide: winners who refinanced at low rates and potential buyers priced out. With mortgage rates nearing 8%, the housing market is paralyzed. Simultaneously, rent has continuously increased, affecting 34% of the nation. The Fed's inability to foresee these repercussions, combined with policies promoting inflation, suggests a bleak outlook.