Precious metals news

JPMorgan Chase CEO Jamie Dimon expressed caution regarding the U.S. economy for 2024 and 2025 due to various financial and geopolitical risks, including the situation in Ukraine, terrorism in Israel and the Red Sea, and the impact of quantitative tightening by the Federal Reserve. Despite record profits at JPMorgan and a resilient U.S. economy buoyed by employment and savings, Dimon advised against complacency, citing the artificially stimulating effects of fiscal and monetary policies on the stock market.

Equity markets and corporate profit estimates have been growing due to a strong economy, but anticipated interest rate cuts by the Federal Reserve might not be positive for company earnings. Historically, rate cuts often signal an approaching recession, a factor not currently reflected in analysts' optimistic projections. With some expecting the Fed to cut rates as early as March in response to decreasing inflation and producer prices, concerns are rising that this could indicate a downturn in profits.

In his latest podcast episode, Peter uncovered the unsettling realities of recent job market trends, focusing primarily on the December jobs report. He casts a light on the sickly nature of recent job creation:

Morgan Stanley's recent report, "Digital (De)Dollarization?”, suggests that the U.S. dollar's global supremacy is at risk due to the rise of Bitcoin and the emergence of Central Bank Digital Currencies (CBDCs). Despite the U.S. contributing about 25% to the global GDP, the dollar accounts for nearly 60% of global foreign exchange reserves. However, this dominance is challenged by the U.S.'s increasing twin deficits and economic sanctions, leading nations to explore alternatives to the dollar. The EU and China are promoting the euro and yuan, respectively, in international trade, while the BRICS nations are developing non-dollar trade methods.

Ever feel like we've been balancing on a razor's edge since 2008? You're not alone.

Gold prices have taken a slight downturn, halting a three-day winning streak, and are currently trading around $2,050 per troy ounce. This decline is attributed to the strengthening U.S. Dollar, which gained momentum following positive US Treasury yields and hawkish comments from Atlanta Fed President Raphael Bostic. Despite this setback, there is potential for increased gold demand due to rising risk aversion linked to escalating conflicts in the Middle East.

The U.S. dollar is approaching its highest level since December, driven by an increase in Treasury yields and investor speculation about upcoming U.S. interest rate reductions. The Bloomberg Dollar Spot Index saw a rise of 0.3%, potentially reaching its peak since mid-December. This surge comes as investors eagerly await insights from Federal Reserve Governor Christopher Waller, following Chair Jerome Powell's indication of possible rate cuts in 2024. The rise in Treasury yields across various maturities after a U.S. holiday also contributed to the dollar's strength. Currency trader Mingze Wu from Stonex Financial suggests that the market is realigning its expectations, possibly doubting any rate cuts by Powell within the year.

When a country starts to develop economically, a few things tend to happen: the death rate falls, workers become more productive, consumers consume more, and birth rates normally fall. During this period, countries experiencing such changes have a relatively small number of retirees and a small share of the population composed of children.

After the company reported lower-than-expected gold production today, Barrick's share price plummeted nearly 10%.  Barrick's gold mine supply is now the lowest in over two decades.  How could this be when the company invested billions in the past decade to expand production...

The U.S. Bureau of Labor Statistics (BLS) recently released two inflation reports highlighting inflation figures for December 2023. Here's what they showed: 

In a disturbing (but unsurprising) trend, more than 1 out of 4 US consumers are throwing in the towel with defeatist “Doom Spending” sprees — despite already being saddled with crippling levels of debt. This behavior is akin to someone who, feeling overwhelmed, indulges excessively in a habit they know isn't beneficial. In a similar vein, these Americans, perhaps feeling a sense of despair, are accumulating unprecedented levels of new debt through spending sprees that are beyond their financial means.

The first half of 2023 was a record-breaking moment for central bank gold buying, led by none other than China and Russia. Organizations like the World Gold Council reported a staggering increase compared to 2022:

While Natgas prices were extremely volatile last week, they continue to remain at yearly lows.  So, what's next for the Energy Market heading into 2024?  With petroleum demand beginning to weaken in the United States, it could set up for lower prices in the next few quarters...

In this week's Friday Gold Wrap Podcast, JD and Joel discuss recent gold price action and market news. They also cover last Friday's non-farm payroll numbers, the strike on Houthi rebels, and the SEC's fumble with Bitcoin ETFs.

On Wednesday, January 11, the Securities and Exchange Commission (SEC) made an interesting decision, voting to allow everyday folks to participate in spot bitcoin ETFs. This move marks an opening for a broader audience to delve into Bitcoin speculation.
The approved ETFs are set to be listed on various exchanges, including Nasdaq, the New York Stock Exchange, and the Chicago Board Options Exchange. This is supposed to provide an additional layer of oversight. But the announcement went terribly wrong, amplifying concerns about the ETFs.

In December, the U.S. federal deficit soared to $129 billion, marking a dramatic 52% increase from the previous year. This rise was fueled by a 3% hike in government expenditures, reaching a record $559 billion, primarily driven by escalated Social Security and public debt interest costs. Compounding the situation, December saw a 6% drop in government receipts to $429 billion, contrasted against the higher levels of December 2022, inflated by pandemic-delayed tax payments. Notably, the first quarter of the 2024 fiscal year witnessed the deficit climbing to $510 billion, a 21% rise from last year, with both outlays and receipts hitting record highs. The cost of interest on public debt also surged by 11% to $119 billion in December, attributed to elevated debt levels and a higher average interest rate of 3.11%, significantly up from the previous year.

Argentina’s inflation rate as hit annual rate of 3,678%. What can be done when the public loses faith in a currency?

The U.S. Labor Department reported a higher-than-anticipated rise in consumer prices for December, indicating persistent inflationary pressures in the economy. The consumer price index (CPI) saw a 0.3% increase in December, surpassing the 0.2% estimate expected by many economists and policymakers. This rise pushed the annual CPI rate for 2023 to 3.4%, exceeding the Dow Jones surveyed economists' forecast of 3.2%. This figure represents a notable decrease from the 6.4% annual CPI gain recorded in December 2022, yet suggests that inflation remains a concern.

A US government operation led by the Secret Service from 1865 covertly dismantled the gold and silver currency system.
This strategic move, propelled by two acts of Congress, was a cunning ploy that centralized economic power.
A commentator from the Mises Institute explores the little-known involvement of the Secret Service in this historical development, and how it impacted the very concept of US currency.

In a landmark decision, the U.S. Securities and Exchange Commission (SEC) has approved applications for spot price Bitcoin exchange-traded funds (ETFs) from 11 issuers, signaling a new era for cryptocurrency. Among the approved are applications from major financial players like BlackRock, Fidelity, and Franklin Templeton. Additionally, the SEC has authorized the digital asset manager Grayscale to convert its Bitcoin trust into a spot Bitcoin ETF. This approval is particularly significant for Grayscale, with a spokesperson confirming their readiness to uplist GBTC to NYSE Arca. Fidelity is also finalizing the registration process for its Bitcoin ETF, working in close coordination with the SEC. This decision by the SEC has been eagerly awaited and is seen as a major boost to the cryptocurrency market.