Precious metals news

Amid geopolitical tensions and a reevaluation of economic partnerships, central banks are significantly increasing their gold purchases, viewing the metal as a stable, politically neutral asset. This trend, highlighted by IMF Deputy Managing Director Gita Gopinath, reflects a shift away from heavy reliance on the U.S. dollar due to its increasing use as a geopolitical tool. The World Gold Council reports that central banks have bought over 1,000 tons of gold annually in 2022 and 2023, making up a quarter of the total gold demand, underscoring gold's role as a hedge in a fragmenting global economic order.

In a notable shift within the investment landscape, the Rothschild family, traditionally associated with the origins of central banking, has entered the cryptocurrency market by purchasing a small stake in Bitcoin. This move came to light in recent SEC filings, which also revealed several major U.S. banks and asset managers disclosing investments in Bitcoin ETFs. Noteworthy banks like JPMorgan and Wells Fargo reported holdings, but the Rothschild investment, though modest at $3.6 million, stands out due to the family's historical financial influence.

Two of China’s largest state-owned banks, Industrial & Commercial Bank of China Ltd. and Bank of China Ltd., are initiating the sale of 60 billion yuan ($8.3 billion) in total loss-absorbing capacity (TLAC) bonds this week. This move is part of a broader strategy to bolster capital reserves and enhance their ability to support economic growth, in line with global banking requirements set for 2025. This issuance is also aligned with Beijing’s objectives to facilitate credit supply and reduce funding costs for businesses, even as it pressures the banks' already tight profit margins.

The global demand for copper has intensified recently, evidenced by significant moves in the industry such as the Biden administration's efforts to prevent Chinese dominance in copper supply by discussing potential investments in Zambian copper mines with companies from various nations friendly to U.S. interests. This strategic maneuver aims to secure a stake in First Quantum Minerals valued at up to $3 billion. Additionally, the high-profile takeover attempt by BHP Group for Anglo American's copper assets, which was recently rejected, underscores the fierce competition for control over this essential metal, crucial for technologies ranging from electric vehicles to AI data centers. Anglo American's decision to focus more on copper by divesting from other commodities further highlights the metal's central role in future global developments.

Gold prices rose modestly on Tuesday, climbing 0.4% as investors awaited a key U.S. inflation report due later in the week. This report is anticipated to have significant implications for U.S. interest rate decisions, influencing the financial landscape and potentially easing the Federal Reserve's current rate cycle starting in September. Lower interest rates typically make gold, which does not yield interest, more attractive to investors. The outlook is partly based on consumer expectations, with predicted inflation rates expected to moderate over the next few years.

Discover shocking insights with Mike Maloney as he delves into what he claims is the greatest gold manipulation in history.

The silver price continued to rally after the release, showing an increase in the Producer Price Index this morning.  Silver initially sold off but then turned around and surged toward $29 before correcting and then closing near the day's highs.  So, what's next for the silver price..

On Friday, Don Ma interviewed Peter on NTD’s Business Matters. Their conversation focuses on declining consumer sentiment. With GDP and unemployment figures also signaling a recession, a worsening consumer outlook bodes poorly for the economy.

Several Federal Reserve officials have indicated that the aggressive interest rate hikes over the past two years might need more time to effectively reduce inflation, hinting at the possibility of maintaining or even increasing rates rather than cutting them this year. Despite sharp increases, higher borrowing costs have not significantly impacted American spending habits or cooled inflation as expected. This observation suggests that current interest rates may not sufficiently restrain economic activity or inflationary pressures, possibly requiring rates to remain elevated for an extended period. Fed Chair Jerome Powell also expressed the need for further observation to ensure inflation approaches the target, leaving the door open for continued high rates.

This week, the stock market saw gains, with the Nasdaq, S&P 500, and Dow Jones rising as Wall Street experienced a lull in economic data. The S&P 500 notably surpassed the 5,200 mark for the first time since early April. Looking ahead, key economic indicators such as the April inflation report, retail sales data, and initial jobless claims—which recently hit a nine-month high—will capture attention. Meanwhile, earnings reports from major corporations like Walmart, Home Depot, and Alibaba are set to punctuate a quieter earnings week.

The World Platinum Investment Council (WPIC) forecasts a deeper global platinum deficit in 2024 than initially expected, attributing the shortfall to diminishing mine supplies from South Africa and Russia. Although the anticipated deficit of 476,000 troy ounces is less than 2023's 851,000 ounces, due to a 5% decrease in demand, it remains significant. This marks the second consecutive year of platinum scarcity, influenced by ongoing production challenges, including restructuring and delayed production increases in South Africa, along with reduced Russian output due to smelter maintenance and the impact of Western sanctions.

InvestingHaven's analysis presents seven charts illustrating that silver is substantially undervalued when its price is compared across various assets like the Australian Dollar, copper, the Dow Jones, treasuries, the CRB index, and even Bitcoin. This method of assessing silver's value through relative readings against diverse assets reveals a consistent undervaluation, providing a broader perspective on its potential as an investment. This multifaceted approach enhances the understanding of silver's market positioning beyond traditional price evaluations.

China has initiated the sale of approximately $140 billion (Rmb1tn) in long-dated bonds to stimulate its economy and fund critical long-term projects. The People’s Bank of China is currently consulting with brokers to determine pricing for this substantial bond issue, which was announced during the annual legislative session to boost economic momentum and address ongoing challenges in the property sector. These bonds, which are part of a series of special sovereign bond issuances dating back to 1998, aim to support significant investments in modernization projects that require central government intervention and offer a more secure investment option amid volatility in regional banking and property markets.

According to a recent Bloomberg Markets Live Pulse survey, while gold remains the preferred hedge against inflation for 46% of respondents, nearly a third now view major U.S. tech stocks as a viable alternative, reflecting a significant shift towards betting on innovation to counteract rising prices. This suggests a growing confidence in the tech sector's ability to offer financial stability even during inflationary periods.

Currency markets stabilized on Monday as traders anticipated upcoming U.S. inflation data, which could influence the Federal Reserve's decisions on potential rate cuts in 2024. Following recent weak U.S. labor market results and the Fed's decision against further rate hikes, expectations for easing have increased, with markets predicting about an 80% likelihood of a rate cut by September and a total reduction of around 40 basis points for next year, according to LSEG data.

Demand for gold during the Akshaya Tritiya festival in India, a major gold-buying event, was notably lower this year as soaring prices led to reduced retail interest. Despite dealers offering significant discounts, the high costs deterred many buyers, leading them to limit their purchases to small denomination coins. Jewelry sales were particularly weak, with one Mumbai jeweller reporting only about two-thirds of the sales compared to the previous year.

Gold prices fell on Monday as investors awaited upcoming U.S. inflation reports to gain insights on potential Federal Reserve rate cuts. Spot gold dropped by 0.7% to $2,344.53 per ounce, marking its largest decline in nearly two weeks, while U.S. gold futures also saw a decrease of about 1%. Analysts suggest that profit-taking in anticipation of the CPI data release is influencing the current dip in prices, with expectations that gold will remain relatively stable provided inflation slows down. Key economic indicators, such as the producer price index and consumer price index, are set to be released on Tuesday and Wednesday, respectively.

The Bitcoin Mining Industry is really a "Shareholder-funded Ponzi Scheme" that is underreporting the true cost of producing Bitcoin.  Unfortunately, Bitcoin investors have no idea of the Bitcoin Mining Industry's unsustainable nature, which I explain in this Video Report...

While in office, Trump blamed the Fed for tightening monetary policy. Now members of Trump’s team allegedly plan to give a re-elected Trump more power over the Fed, igniting panic from mainstream economists about a politicized Fed. Our guest commentator explains why the real risk, from the establishment’s perspective, is not that Trump will turn the Fed into a political organization but that he will expose that it already is one.

On Wednesday, Peter appeared on This Week in Mining with Jay Martin. Jay and Peter discuss the state of the economy, the government’s assault on sound money, and why the mining sector constitutes a good investment.