Precious metals news

In 2023, the Federal Reserve reported an unprecedented operating loss of $114.3 billion, halting its payments to the Treasury due to high interest rates. The Fed's interest expenses surged to $281.1 billion, driven by costs related to reverse repo operations, while its income from assets was $163.8 billion. Typically, profits from the Fed's securities go to the Treasury, reducing the federal deficit. The shortfall since late 2022 led to a deferred asset for the Treasury, increasing to $133.3 billion, yet affecting neither the federal budget nor monetary policy strategies.

Larry Fink, CEO of BlackRock, has issued a dire warning about the U.S. debt crisis, stating it's more urgent now than ever. Fink emphasized that neither taxes nor spending cuts alone could solve the problem, likening the potential future to Japan's economic stagnation in the late '90s. He highlighted the danger of rising debt servicing costs, making it tough to combat inflation. Fink calls for economic growth through infrastructure investments, particularly in energy, to avoid a looming debt catastrophe.

While the United States is now the world's largest petroleum producer, the important high-quality conventional oil supply is at a 50-year low.  There Lies the Rub, but the market doesn't realize it because $23 trillion of additional U.S. Treasury issuance since the 2008 GFC propped up the U.S. Shale Oil...

Goldman Sachs analysts project that gold's impressive 8% rally this month is just the beginning, with predictions of the precious metal reaching $2,300 an ounce by the end of the year. This surge comes as gold futures recently peaked at $2,182 an ounce.

Credit card debt has surged, reaching a record $1.13 trillion in the last quarter of 2023, as per the Federal Reserve Bank of New York. However, the impact of credit card debt varies significantly from state to state. A recent Bankrate study sheds light on this disparity, comparing states based on average credit card balances against household incomes. Louisiana, Mississippi, Oklahoma and West Virginia are the most burdened states based on our methodology. The least debt burdened state is Massachusetts, followed by Minnesota, New Hampshire, California and New Jersey.

A recent Deutsche Bank survey reveals a significant shift in investor sentiment regarding the U.S. economy's future. While last year, a majority of investment banks and Wall Street investors were bracing for a recession, driven by persistent inflation and rising interest rates, the current outlook has dramatically changed. Now, nearly half of all investors believe in a 'no landing' scenario, where inflation persists without leading to a recession.

Vivek Ramaswamy, a notable figure in the 2024 presidential primaries, has garnered attention for his critical stance on the Federal Reserve, a topic largely ignored by other candidates. He advocates for a monetary policy centered on maintaining a stable dollar price level. This unique focus on the Fed's role in economic stability distinguishes Ramaswamy's approach from his political peers.

The World Bank shares their Gold Investing Handbook for Asset Managers. Spanning over 70 pages, this handbook compiles cutting-edge research on gold investments from some of the world's leading experts.

Researchers from the Federal Reserve Bank of Philadelphia, Jesús Fernandez-Villaverde and Daniel Sanches, have found that adopting a gold standard could lead to long-term price stability. Their study, published in February, simulates how a gold standard might function in a small open economy. According to their findings, prices would naturally align with their long-term equilibrium, making inflation and deflation temporary issues. This suggests that a gold-based monetary system could offer a more stable pricing environment.

In this thought-provoking video, precious metals expert Mike Maloney dives deep into the current economic landscape.

Gold's recent rally to over $2,200 an ounce, marking a significant 10% increase since mid-February, underscores a turning point for the precious metal. This surge, surprising to many, affirms the strength of several factors working in favor of gold. The Federal Reserve, under Jerome Powell's guidance, has hinted at a softer monetary approach, potentially cutting rates up to three times in 2024. This shift away from the stringent monetary policies of the past year and a half signals a brighter outlook for gold. As real yields decrease, the appeal of gold, which doesn't bear interest, naturally grows, positioning it as an increasingly attractive investment amidst the anticipated rate cuts.

Joe Cavatoni, a market strategist at the World Gold Council, recently appeared on 'Closing Bell: Overtime' to share insights into gold's burgeoning market performance as it approaches record-high values. Cavatoni emphasized that the current economic climate, marked by rate cuts, is highly favorable for investing in gold. His analysis points to the precious metal's appeal as a safe-haven asset, particularly in times of financial uncertainty and adjustments in monetary policy.

Silver presents an attractive investment option, thanks to its dual role as both a precious metal, akin to gold, and a critical component in various industrial applications, ranging from solar panels and computing to healthcare. Its value is uniquely positioned to benefit from economic growth, making it particularly responsive to the state of the economy. Currently, silver is considered undervalued when compared to gold, as highlighted by the gold/silver ratio. According to Charlie Morris from ByteTree, the ratio now stands at about 88 ounces of silver for one ounce of gold, against a 30-year average of 67 ounces, indicating silver's potential for growth.

Gold prices experienced a notable increase overnight, nearing $2,200 per ounce, influenced by the market's anticipation of potential interest rate cuts by the U.S. Federal Reserve within the year. This surge in gold values comes as traders keenly await upcoming inflation data, which is expected to play a crucial role in determining the timing of these anticipated rate adjustments.

Federal Reserve Chair Jerome Powell is prepared to lower interest rates to support the job market, despite potential risks of sustained high inflation. This shift, aimed at preventing job losses, marks a notable pivot from the Fed's previous strategy of raising rates to curb inflation. Powell emphasized this potential policy change in light of recent unemployment trends, highlighting the Fed's focus on employment stability over short-term inflation concerns.

In 2024, CEOs see the U.S. national debt as the top geopolitical threat amid global economic turmoil, including rising costs, labor challenges, trade tensions, and geopolitical instability. The Conference Board's survey of 1,247 C-suite executives highlights concerns over debt and deficits, amidst broader issues like AI technology, human capital management, and sustainability. This perspective underscores the need for future-ready leadership amidst global challenges.

Experts say the housing market likely won't see more affordable mortgage interest rates for a while.

The Federal Reserve is anticipated to lower interest rates, which may positively impact President Joe Biden's reelection campaign by potentially easing public concerns over high inflation and increasing housing costs. This move, however, is expected to attract criticism, especially from Republican circles, including Donald Trump, who argue that the Fed's actions could unfairly influence the election outcome. Trump has preemptively suggested that Fed Chair Jerome Powell, appointed by him in 2018, might lower rates to benefit the Democrats.

Iran's currency dropped to an all-time low of 613,500 to the dollar amid the Persian New Year celebrations. The scarcity of open exchange shops during the Nowruz holiday, which spans from March 20 to April 2, exacerbated the situation. High demand for foreign currency, particularly dollars and Euros, due to holiday travel, coupled with limited access to exchange services, significantly influenced the currency's valuation. This event reflects broader economic pressures and the impact of seasonal factors on Iran's financial stability.

In 2024, gold is expected to shine brightly, driven by three pivotal factors: anticipated interest rate cuts by the US Federal Reserve, a weakening US dollar, and ongoing geopolitical tensions. These elements are forecasted to sustain high gold prices, with expert predictions suggesting that the metal will not only remain above $1,950 per ounce but could also surpass the $2,500 mark. This optimistic outlook is supported by several research agencies, which have adjusted their price forecasts upward, indicating a robust period ahead for gold investors.