Precious metals news

Workers are seeing real wage growth, with hourly earnings rising 0.6% in January and 4.5% year-over-year, surpassing inflation rates. This improvement reflects a robust labor market where workers in certain sectors enjoy significant bargaining power, marking a shift from the previous two years when inflation outpaced wage increases.

Amid rising financial pressures due to inflation, increased interest rates, and the cessation of pandemic relief efforts, American credit card debt has hit a record $1.13 trillion in late 2023. The New York Federal Reserve reports a 1.2% increase in overall household debt, with credit card delinquencies rising significantly. This situation underscores the importance of prioritizing debt repayment to mitigate the impact of these economic challenges.

ZeroHedge - Phil Streible explains why now is the time to invest in precious metals.

Federal Reserve Chair Jerome Powell announced plans to reduce interest rates three times within the year, signaling a start potentially by May. Despite recent aggressive rate hikes to combat inflation, Powell expressed optimism about the U.S. economy's strength and dismissed recession fears. This strategy suggests a shift towards easing the financial conditions, reflecting confidence in economic stability and growth potential.

In the landscape of economic foresight, John Exter, a distinguished hard money advocate and former precious metals expert for The Fed, offers a model that resonates with the principles upheld here at SchiffGold. Developed in the 1970s, Exter's Inverted Pyramid of Risk remains as relevant as ever, especially in assessing assets through the lens of counterparty risk. The pyramid serves as a guide to comprehend the risks facing America, particularly in anticipation of what may be the most severe credit crisis in the coming decade or two, centered around the USD crisis.

Despite geopolitical tensions and a tumultuous start to the year, oil traders are increasingly investing in oil derivatives, pushing open interest in oil futures contracts to its highest level since March 2022. This surge, involving about 660 million barrels of oil derivatives, occurs despite crude oil prices remaining within a narrow $10-a-barrel range. The activity reflects not only seasonal trends of portfolio rebalancing but also concerns over political risks, such as the redirection of oil tankers around Africa due to conflicts in the Middle East, economic uncertainties including interest rate outlooks, and the potential for Chinese economic recovery.

Chinese government officials, led by the China Securities Regulatory Commission, are set to brief President Xi Jinping on the nation's stock market turmoil and planned policy measures, sparking hope among investors for a robust intervention to halt the market's decline. The briefing comes as Chinese stocks show signs of recovery, with significant gains in both major and small-cap indices. Despite the uncertainty of new support measures, the market's recent performance reflects growing expectations for decisive government action amid concerns over investor sentiment and consumer confidence as China approaches the Lunar New Year holiday.

The recent strike near a U.S. base in Syria resulted in the death of six members of a U.S.-allied militia, highlighting the ongoing challenges faced by Washington in managing conflicts in the Middle East. This incident follows a series of U.S. airstrikes targeting Iran-allied militia sites, demonstrating the persistent tensions and the difficulties in containing regional hostilities. Despite these aggressive measures escalating, the U.S. is attempting to contain the conflict in the region.

Incrementum shares the Monthly Gold Compass February 2024 report.

January saw a record issuance of sovereign debt from emerging markets, led by countries like Saudi Arabia, Mexico, and Hungary. However, this surge contrasts with stagnant flows into dedicated emerging market debt funds. Year-to-date, investors pulled about $1.6 billion out of dedicated emerging market hard-currency funds, according to Morgan Stanley data. That follows outflows of around $80 billion in 2022 and around half of that again last year.

Recent reports reveal a mixed bag for the bond market. While fears of a severe credit crunch have not materialized, high borrowing costs continue to challenge households. The Fed's rate hikes have pushed interest rates to two-decade highs, yet the economy shows remarkable resilience.

ExxonMobil & Chevron posted dismal financial results in its U.S. Oil & Gas Sector for Q4 2023.  While this was mainly due to impairment write-downs, the problem remains as shale economics continue to severely underperform the production from the international sector...

On Monday, the stock market experienced a downturn, with the Dow Jones Industrial Average falling 274.30 points (0.71%) to 38,380.12, and the S&P 500 declining 0.32% to 4,942.81, retreating from its recent record high influenced by Big Tech gains. The Nasdaq Composite also saw a slight decrease of 0.2%, closing at 15,597.68. This downward movement was largely attributed to a significant rise in Treasury yields, fueled by concerns that the Federal Reserve might not implement rate cuts as previously anticipated.

Tavi Costa shares insights on smart capital allocation and the potential for silver to outperform.

A growing segment of Americans, particularly those in lower- and middle-income brackets, have depleted their savings and accrued substantial credit card debt due to persistent inflation over the last two years. This financial strain is exacerbated for those also juggling student loan repayments, raising concerns about worsening financial health. Credit card debt in the U.S. reached a record high of over $1.05 trillion in the third quarter of 2023, with expectations for further increases. Moody's has reported rising delinquency and charge-off rates, indicating a significant number of Americans are struggling to manage their debt, with rates surpassing those seen in 2019 and projected to continue rising.

The Yahoo Finance Chartbook reveals through 10 critical charts how the US economy has managed to avoid a recession, showcasing resilience against the backdrop of last year's recession forecasts. A pivotal indicator of this strength is the latest jobs report, which significantly exceeded expectations by adding 353,000 jobs, surpassing the anticipated 185,000. This report, along with analyses from leading Wall Street equity strategists and economists, highlights the underlying economic forces contributing to the economy's durability, even in the face of the highest interest rates seen in over two decades.

In a significant move towards de-dollarization, 20 nations have joined the Russian Payment System as part of the BRICS alliance's efforts to reduce reliance on the US dollar. This step aligns with the BRICS group's broader strategy to challenge Western financial dominance. Russia's System for Transmitting Financial Messages (SPFS), serving as an alternative to the SWIFT system, has garnered over 159 foreign participants, indicating a growing interest in diversifying away from traditional, dollar-centric financial systems. This development was highlighted in a recent announcement by Russia's Central Bank Governor, Elvira Nabiullina, emphasizing the BRICS' commitment to establishing a more independent global financial infrastructure.

Our nation's top financier had it correct 111 years ago: "Money is gold, and nothing else." J.P. Morgan was convinced of this. Still, government agencies have schemed over the centuries to dismantle the gold standard. 
Our guest commenter explains that, even though the Fed still holds gold, there was never a time when the dollar was less backed or less safe than now.

In 2023, Venezuela's central bank reported an 11.5% decline in its gold reserves, totaling 61 metric tons, a decrease reflected in the reserves' value, which dropped to $3.8 billion, $71 million less than the previous year. The central bank, without specifying causes for this decline in its announcement, noted the average gold price on its balance sheet for the latter half of 2023 was $1,959.62 per troy ounce, compared to $1,775.02 the year prior.

Gold's price charts are exhibiting bullish trends, with prices not only maintaining above the long-term moving average but also marking the highest weekly closing prices in recent history. This pattern, featuring a series of reversals over the last 3.5 years all above the long-term moving average—which itself is on an upward trend—indicates strong bullish momentum. Furthermore, a breakout consolidation phase suggests stability after recent gains, signaling investor confidence in gold's long-term value. Despite these positive technical indicators, investor sentiment has not aligned, as gold prices have been fluctuating between $2,000 and $2,070 per ounce for two months, creating a sense of uncertainty and frustration among investors.