Precious metals news

Whenever Mike Maloney makes a change in his portfolio, he likes to send out an alert to share it with his GoldSilver Insiders first. Mike likes to let you know precisely what he’s doing and why. That’s why you’re receiving this alert.Mike believes we’ve just witnessed a watershed moment in the history of A.I. He's identified a company that is not only a global frontrunner in Artificial Intelligence... but it’s also poised to dominate the robotics sector.And no, it’s not the usual suspects like Nvidia, Google, or Microsoft.

While the Bakken isn't running out of drilling locations yet, it is certainly running low on the higher-quality sites in the four counties that provide 93% of production.  Few Americans realize that most of the shale oil comes from just a few counties in these large shale fields...

While natural gas prices have remained low since the beginning of Spring, the natural gas market may experience significant price volatility over several weeks.  Why?  There are major supply and demand forces that could disrupt the natural gas market and price in September...

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Throughout history, gold's value has surged during bull markets, sometimes exceeding the monetary base by over 1.5 times. Even after the US abandoned the gold standard, this trend persisted, emphasizing gold's enduring significance. Presently, with the Fed's balance sheet expansion, projecting gold's price surge might seem audacious. If excess reserves are excluded, a conservative scenario, gold would still need to hit $14,000 per ounce for 1.5 times coverage. However, historical precedents show that gold could reach as high as $32,000 per ounce under certain conditions. This pattern emerged twice in the past century, during the deflationary 1930s and inflationary 1970s. In both periods, gold emerged as the preferred asset, driving its valuation to unprecedented levels. Amid potential financial turmoil this decade, investors are likely to flock to gold, potentially pushing its value to new extremes.

Gold is prized for its stability and ability to maintain value during currency fluctuations caused by inflation. This makes it a reliable hedge against uncertainty, exemplified by its record-breaking performance during the Covid-19 pandemic. Its inclusion in investment portfolios helps diversify risk due to its distinct performance from other assets. As a tangible asset, gold offers a sense of security and ease of access, and its limited supply contributes to its potential appreciation. Universally recognized and accepted, gold's global appeal has made it a timeless investment choice.

Gold's recent resilience amid rising real rates suggests a growing concern about recession risks. While the idea of certain markets predicting the future is met with skepticism, gold's performance shouldn't be ignored, especially when it aligns with other indicators. Historically, gold tends to shine during recessions, outperforming major asset classes like stocks, bonds, and commodities. While stocks rally before a recession and then plummet, gold's behavior remains steady. However, an upcoming recession might bring elevated inflation, altering the usual market dynamics.

Bank of America Corp. strategists warn that despite the Federal Reserve's rate hike pause, US stocks are at risk of a harsh economic downturn. Labor market weakening indicates the Fed's caution, but strategist Michael Hartnett predicts a hard landing becoming more apparent soon. He advises selling after the last rate hike. Barclays Plc strategist Emmanuel Cau adds that the market's optimism about weak economic data benefiting stocks has its limits, especially if earnings are impacted, and suggests that the fate of equities could hinge on the US consumer.

U.S. Treasuries are on track for their worst yearly performance since the Declaration of Independence. Despite hopes of a soft landing for the U.S. economy, aggressive Fed rate hikes and ongoing stimulus have led to a third consecutive year of declining Treasury values. On the other hand, equity funds saw $10.3 billion in net inflows. However, the optimism in equity markets is not translating to the broader picture. BofA notes that MSCI's All Country World index is at its narrowest since 2003, highlighting the lack of breadth in global markets.

US Treasury bonds are experiencing their longest losing streak in history, dating back to 1787, according to Bank of America. The 10-year Treasury's third consecutive annual decline is underway, with losses of 3.9% in 2021, a staggering 17% in 2022 – its worst performance since 1788 – and a 0.3% dip this year. "10-year Treasury on course for third consecutive loss... never occurred in 250-year history of US republic. Reflects staggering 40% jump in US nominal GDP (growth + inflation) since 2020 COVID lows," said BofA's Michael Hartnett. The Federal Reserve's aggressive interest rate hikes are behind the bond market's pain. With 11 rate hikes since March 2022, the fed funds rate surged from nearly 0% to over 5%, causing bond prices to fall.

The US dollar is losing ground due to signs of easing growth in the labor markets, reducing the likelihood of a Fed interest rate increase. Although August payrolls grew more than expected at 187,000, the rise in unemployment to 3.8% and a slowdown in wage growth counterbalanced the expansion. As a result, the WSJ Dollar Index and DXY both drop by 0.3%, causing the dollar to weaken by 0.6% against the yen and 0.2% against the pound and euro.

In the last few days, gold and silver have paused their earlier rises. In the case of silver, these have been substantial, as shown in our headline chart. In gold, less so; but it does appear that silver is leading both metals higher. In European trade this morning, gold was $1944, up $39 on the week, and silver $24.60, up 40 cents. Silver is up 10% from its mid-August low, leading gold which is up only 3%.

Consumer spending is in jeopardy as excess pandemic savings dwindle and credit card debt mounts. The strain is compounded by high borrowing costs and tightened lending standards. "Credit card borrowing costs are the highest since records began in 1972 so there is going to be a lot of pain out there," ING's James Knightley said. He predicts a decline in early 2024, highlighting the exhaustion of savings, student loan payments restarting in October, and limited credit card capacity. The US has seen total credit card debt reach a record high of over $1 trillion.

US manufacturing woes persist as the ISM Manufacturing index for July falls to 47.9 (down from June's 49.0). The Manufacturing PMI also rises only slightly to 47.6, remaining below 50 for four months. Chris Williamson from S&P Global warns of declining orders, weak pricing power, and fading business confidence. The report hints at potential stagflation, with rising prices but dampened demand. Hope rests on future policy initiatives, but immediate outlook remains uncertain.

The Three Strikes Law imposes harsh sentences on individuals for multiple felonies, but major banks like JPMorgan Chase receive leniency. Despite facing felony counts, JPMorgan's penalties remain mild. For instance, it was fined just $4 million for deleting 47 million emails under subpoena. The bank's alleged involvement in sex trafficking with Epstein and rigging the Treasury market resulted in deferred-prosecution agreements. This unequal treatment highlights a troubling disparity in the justice system.

The growing US national debt, now exceeding $30 trillion, raises concerns about when a tipping point might be reached and what the consequences could be. The government funds its activities through taxation (T), debt financing (D), and money printing (M). Rising debt and deficits point to potential trouble ahead. While raising taxes seems like a solution, there's a limit to how much revenue it can generate before discouraging work. Debt financing also has limits, as high interest rates deter lenders. Ultimately, excessive debt leads to inflationary monetary policy, which can devastate the economy.

The US labor market disappoints once again as August's payrolls report reveals a grim reality. Despite a nominal beat with 187K jobs added, the trend of downward revisions continues, indicating potential data manipulation. The unemployment rate unexpectedly jumped to 3.8%, and wage growth remains lackluster, rising by only 0.2% month-on-month and 4.3% annually. The labor market's instability persists, painting a bleak outlook.

China's central bank slashes foreign currency deposit requirements, a desperate move to combat a floundering economy. Feeble attempts at stimulus for the property sector and tax breaks prove feeble in the face of a deepening housing crisis and dwindling global demand. Economic woes continue to mount, with rising unemployment adding to the gloom. Skepticism abounds, as experts question whether these measures can truly reverse the downward spiral. Despite some uptick in economic data, China's currency remains in a downward spiral, sliding towards its weakest level in over a decade.

We're kicking off Labor Day weekend. That means you're going to hear a lot of rhetoric about how the government needs to do more for workers. But as Friday Gold Wrap host Mike Maharrey explains, we don't really need better government policies for workers. We need better money for everybody. He also talks about tanking consumer confidence in this bubble economy.

I was simply "Stunned" to find out that the top Gold Miners' total cost of production is now over $1,700.  It's no wonder the gold mining stocks have underperformed even with much higher gold prices.  Unfortunately, I believe costs will only increase in the future...