Precious metals news

I've been saying that the government job numbers seem wonky. Looking at the monthly revisions bear this out. Every month this year, the Bureau of Labor Statistics has revised the nonfarm payroll numbers from previous months lower.

Top Senate Democrats are gearing up to confront House Republicans over government funding as the specter of an October shutdown looms ominously. While a bipartisan Senate group collaborates on a stopgap spending bill, House Republicans are embroiled in internal disputes over matters such as emergency aid and spending size. Senate Democrats, rallying behind a $1.59 trillion discretionary budget agreed upon with President Biden, are poised to present a united front, exacerbating divisions within the House GOP. As tensions escalate, the prospects of a debilitating shutdown cast a grim shadow over the already polarized political landscape.

The eurozone's economic challenges are marked by stagflation risk, inflation concerns, and weak growth. Despite significant stimulus efforts, central planning has yielded poor growth and elevated debt. The ECB's inflation target remains unmet, leading to interest rate hikes, but the burden of normalization falls on the productive sector. Next Generation funds show limited impact, as weak manufacturing and service indices persist. Rising rates, lagging technology innovation, and high taxation add further headwinds

China's major banks are stepping in to extend billions of dollars in loans to Russia, capitalizing on western lenders exiting due to sanctions following Russia's invasion of Ukraine. The four largest Chinese banks have substantially increased their exposure to Russia's banking sector since 2022, with their combined exposure rising from $2.2 billion to almost $10 billion. The move underscores the impact of sanctions and the shift towards Chinese institutions filling the void left by western banks.

Chinese President Xi Jinping's absence from the upcoming G-20 meeting has sparked speculation about his focus on bolstering the BRICS forum. This shift away from the G-20 suggests Xi's strategy to consolidate power within dependable groupings. It also raises questions about China's unpredictability and potential impact on its global reputation and economic stability. The move underscores the growing significance of the BRICS bloc and its potential to influence international dynamics.

Peter Schiff recently appeared on the Capitol Report on NTD News to talk about the state of the US economy. He explained how government spending has created the price inflation Americans continue to struggle with, and how it has bankrupted the United States.

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...

Join Mike Maloney in celebrating the incredible journey of his book as it climbed to #40 on Amazon, all thanks to your amazing support! Witness the remarkable transformation from an initial launch at #104 to a phenomenal rise in the ranks. Your enthusiastic response has reignited Mike's passion for writing and research. Discover the sales graph, insights into the book's evolution, and a glimpse into the future with upcoming versions... yes, the audiobook and Kindle versions are on the way! Get your copy of Mike's book here.

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.