Precious metals news

Around 13,000 U.S. auto workers went on strike after failing to reach an agreement on union demands with Detroit’s three major automakers. For the first time in its 88-year history, the United Auto Workers union simultaneously walked out on General Motors, Ford, and Stellantis. This strike comes at a critical juncture for the U.S. auto industry, which is transitioning to electric vehicles, signaling major challenges for the sector's future.

The economy is in a slow burn. You can't even see the flames. But you can smell whiffs of smoke every now and then if you're paying attention. In this episode of the Friday Gold Wrap, host Mike Maharrey calls attention to that smoke with a breakdown of August's CPI  and some other data that came out this week. He also busts a myth about silver.

Investors are totally unprepared for the coming Major Non-Linear Financial & Economic events because they continue to listen to analysts who focus on a BUSINESS AS USUAL WORLD.  Unfortunately, those days are over, especially when we see the massive debt being used to prop up the system...

Famed Author and investor Robert Kiyosaki highlighted on X that silver remains the "Biggest Investment Bargain," Still trading 50% below its all-time high and being crucial for the green revolution in solar and EVs. Esteemed for its inherent value, silver, like other precious metals, offers an age-old protection against inflation, outshining fiat money that central banks can print limitlessly.

China's gold is trading at a record premium due to Beijing's efforts to defend its weakening currency. This premium, over US$120 an ounce, is the highest in over two decades, reflecting the strength of gold amidst economic instability. The central bank's intervention strategies, including limiting gold imports, highlight the metal's significance. As global investors observe China's currency struggles, they are increasingly turning to gold

Argentina experienced a shocking inflation rate of 124.4% in August, the highest since 1991, leading to widespread hardship. Daily, consumers scramble to find affordable options amid drastically varying prices. With monthly inflation at 12.4%, poverty rates have surged beyond 40%, fueling discontent globally. Such economic instability serves as a stark warning for countries worldwide.

n the past three months, the US has seen an average monthly increase of $500 billion to its national debt. Over the last five years, there's been a 54% rise in US debt. As of now, the year-to-date interest expense has exceeded $800 billion. These numbers are so large it’s hard to believe.

The expiration of U.S. pandemic-era programs in 2021 resulted in a sharp increase in poverty in 2022, with inflation exacerbating the situation. The child poverty rate doubled to 12.4%, and the overall rate rose to 12.4% from the previous year. This uptick was largely due to the cessation of stimulus payments and enhanced child tax credits. Experts highlight the need for political action to address escalating inequality.

When the precious metals bull market arrives history suggests silver has more upside potential than just about any other asset...

In March 2023, I highlighted the link between high inflation and subsequent unemployment. Historical data suggests a two-year lag between inflation peaks and unemployment surges. With a 9.1% inflation peak in June 2022, we might expect rising unemployment by June 2024. The recent 3.7% CPI increase warns of more employment challenges around 2025. Worryingly, the Federal Reserve's 2% inflation target, diverging from a 1978 Congressional mandate of zero, exacerbates the issue, pointing to a bleak job market future.

Jobless claims have alarmingly risen to 220k from 215k, despite Ohio's attempts to rectify its fraudulent filings. These efforts have only marginally reduced the national figure. Ohio, once plagued with the most significant fraudulent claims, now showcases a decline. However, continuing claims remain precariously close to the worrying 1.7MM mark. Goldman Sachs warns of seasonal distortions that could pull down continuing claims, potentially impacting 375k by September's end. The unemployment rate is ominously at its peak since February 2022.

Mortgage applications plummeted 0.8% in just a week, as per the Mortgage Bankers Association. Even after Labor Day adjustments, a concerning 12% slump was observed from the prior week. Refinancing took a nosedive by 5%, and the year-on-year data shows a startling 27% decline in purchase applications.

Russia and the Saudis are driving up oil and diesel prices. But these moves are likely to undermine the rouble more than they undermine the dollar, euro, and other major currencies. Therefore, higher energy prices will rebound on the Russians this winter: if they shiver in Germany, they will freeze in Russia. If the dollar is king of the fiats, the rouble is just a lowly serf.
There is little doubt that Putin and his advisers are aware of this problem. Plan A was to introduce a new gold-backed BRICKS currency which might be expected to weaken the dollar and euro relative to the rouble. Plan B was more drastic: to back the rouble itself with gold. This is the financial equivalent of dropping a hydrogen bomb on the dollar and the global fiat currency system upon which it is based.
As well as demonstrating why there is no option for Russia but to back her currency with gold, this article shows why it is perfectly possible for Russia to do so during wartime and explains how it c...

Real median household income dropped for the third year in 2022, with a significant inflation surge of 7.8%. Despite some positive economic indicators, many Americans feel financially strained under Biden's tenure. Critics argue excessive welfare spending contributed to the inflation spike. Current data, especially from Gross Domestic Income, hint at looming economic challenges.

Inflation continues unabated, with the Consumer Price Index (CPI) accelerating to a year-over-year rate of 3.7%. The Core CPI, which removes volatile sectors like food and energy, has risen by a concerning 4.3%. Despite a 33.6% drop in the health insurance CPI, monthly surges in gasoline prices signal further inflationary pressures. As these trends persist, it's evident that the economy is grappling with an ongoing inflationary period.

Producer Prices surged by 0.7% MoM in August, marking the highest increase since June 2022 and surpassing expectations. This uptick suggests a rapidly intensifying inflation environment. Notably, goods prices are increasing quickly year-over-year, and indications point to the continued growth of production costs. This unfavorable inflation trajectory is likely not in line with the Federal Reserve's preferred scenario.

Retail sales in August surprisingly rose by 0.6% MoM, defying BofA analysts' predictions of a decline. The main boost came from a 5.2% MoM spike in spending at gasoline stations, even as overall economic conditions showed mixed signals. Critics advise caution in interpreting this nominal data, especially given rising gas prices.

The European Central Bank (ECB) hiked its main interest rate for the 10th straight time, prioritizing combatting inflation over the region's slowing economy. Rates have surged from -0.5% in June 2022 to a record 4%. New ECB projections show inflation at 5.6% this year, and while further hikes may pause, the bank stressed rates will remain at these high levels "for as long as necessary" to manage inflation. Economic indicators suggest downturns, especially in Germany, Europe's largest economy, with business sentiment dropping. With the ECB's aggressive stance on inflation, there's uncertainty about the region's economic outlook.

Rising interest rates and the aftermath of COVID-19 have created an unprecedented challenge for homebuyers.

Despite silver's recent underperformance, it presents an attractive entry point. The gold-silver ratio, historically between 50 and 60, now exceeds 80, suggesting silver's undervaluation. As demand for silver grows in sectors like solar and EVs, and supply challenges loom, prices are expected to rise significantly. The current market dynamics make a compelling case for silver investment.