Precious metals news

In November, the U.S. saw a slight decrease in job openings, with the figure dropping to 8.79 million, the lowest level since March 2021. According to the Labor Department's Job Openings and Labor Turnover Survey, this represents a small decline of 62,000 openings, with the vacancy rate remaining steady at 5.3%. Additionally, hiring decreased by 363,000, reducing the hiring rate to 3.5%, and layoffs also fell by 116,000. This change brought the ratio of job openings to available workers down to 1.4 to 1, a significant reduction from the 2 to 1 ratio seen earlier in 2022. The reduction in job openings was particularly notable in transportation, warehousing, utilities, and leisure and hospitality sectors, while wholesale trade and financial activities sectors experienced increases.

As the world shifts towards electrification and away from fossil fuels, gold miners are increasingly turning their focus to copper, recognizing its critical role in building electric vehicles, wind turbines, and solar-power systems. Celebrating high gold prices, companies like Newmont and Barrick Gold are investing heavily in copper, with Barrick aiming to become a significant copper producer through developments in Pakistan and Zambia. Similarly, Newmont expanded its copper ventures by acquiring Newcrest Mining for about $15 billion. Other gold mining firms, such as Evolution Mining and Agnico Eagle Mines, are also making significant investments in copper mines. These moves indicate a strategic pivot by gold miners, as copper is often found alongside gold, and historically, its revenue has been used to offset gold production costs.

HSBC forecasts that commodity prices will remain high in 2024, driven by limited supply, increased demand from China, and the global energy transition. They expect an average price rise of 2% in 2024, followed by a 4% decline in 2025. Factors contributing to the high prices include China's growth recovery and ongoing supply challenges. Geopolitical risks and anticipated easing of monetary policy in the latter half of 2024 could further drive prices up, while a global growth slowdown poses a downside risk.

The Royal Mint experienced a 7% increase in investors in 2023, with gold prices hitting record highs in sterling terms. A majority of investors, 77%, engaged in the market through digital platforms like DigiGold or by buying fractional coins and bars. The Mint's buyback scheme also saw a 46% increase in payouts compared to 2022, marking a record high. This surge is attributed to investors' "flight to safety" mentality.

The U.S. gross national debt has hit a record $34 trillion, signaling upcoming political and economic hurdles in managing the country's finances. The Treasury Department's recent report highlights the growing tension in Washington, with the possibility of a government shutdown if an annual budget is not established. A temporary agreement, reached last June between Republican lawmakers and the White House, lifted the nation's debt limit until January 2025, averting a potential historic default.

The Federal Reserve faces a pivotal year, aiming to achieve a "soft landing" by curbing inflation without significantly increasing unemployment. In a notable development, inflation slowed to its lowest annual rate in two years, while unemployment stayed low, and consumer spending remained robust, despite the highest interest rates in over two decades. This progress has sparked optimism about a possible soft landing and discussions about reducing interest rates. The Fed has signaled intentions to start cutting rates this year, offering relief from high borrowing costs affecting the housing market and businesses.

Peter Schiff left a stark warning in his recent podcast: “2024 could be a horrible year for the dollar.” 
Here are 3 big reasons why Peter thinks inflation might rise even higher this year.

Industrial demand for silver is projected to increase by 8% to a new high of 632 million ounces in 2023. This surge is primarily fueled by investments in photovoltaics, power grids, and 5G networks, alongside growth in consumer electronics and vehicle production. This forecast was presented at the Silver Institute's Annual Silver Industry Dinner in New York City.

Only half of American credit card users believe they can fully pay off their December balances, as per the LendingTree Credit Card Confidence Index. This index hit an all-time low of 51% in December, down from 58% in November. Meanwhile, national credit card balances have soared to a record $1.08 trillion, with average interest rates reaching a 30-year high of 21%. The rise in debt, inflation, and interest rates is impacting consumer confidence, notes Matt Schulz, chief credit analyst at LendingTree. Additionally, a Bankrate survey indicates an increase in cardholders carrying month-to-month debt, and the average credit card debt per customer is now $6,088, up from the previous year.

As the new year begins, the U.S. grapples with a daunting $34 trillion federal debt, surpassing the country's annual economic output. This situation, a result of tax cuts by Republicans and expansive climate and health initiatives by Democrats, along with pandemic relief efforts, marks a significant shift from the previous decade. Once deemed manageable due to low interest rates and inflation, this debt is now viewed with increased concern. Moody's recent downgrade of U.S. debt outlook to "negative" and Treasury Secretary Janet Yellen's admission of potential sustainability issues underscore this change in perspective, echoed by economist Paul Krugman's call for serious deficit reduction.

Gold prices saw an upbeat start in 2024, fueled by investor optimism over a potential US Federal Reserve rate cut. The precious metal's spot price climbed 0.6% to $2,074.40 per ounce, marking a 13% increase in 2023 and its first annual gain since 2020. This surge is attributed to the market's expectation that the Fed will lower rates sooner rather than later. Market analysts point out that a continued slowdown in inflation and economic activity could further bolster gold's position, especially if Treasury yields drop and the dollar softens. The week is crucial for gold investors, with a focus on upcoming economic data, including US job openings and December non-farm payrolls, and the minutes from the last Fed meeting. These factors, combined with technical indicators, suggest that gold may retest support levels in the near term. Meanwhile, other precious metals like silver, palladium, and platinum also registered gains.

The U.S. labor market is poised to be a crucial buffer against potential Federal Reserve policy errors in 2024. With the Fed's decisions on interest rate cuts being a focal point, the strength of the job market remains vital for averting a severe recession. The unemployment rate is expected to stay below 4% for a record stretch, showcasing an inclusive job market with significant gains for prime-age women, workers with disabilities, and Black men. This robust employment scenario, reflecting the longest period of such strength since the 1960s, is instrumental in mitigating the impact of high consumer prices. Notably, wages are increasing at a rate outpacing inflation, and sustained productivity growth is expected to maintain these wage gains, thereby bolstering the U.S. economy in the face of monetary policy changes.

Saudi Arabia has officially joined the BRICS bloc, as confirmed by state TV, marking a significant shift in global alliances. This move aligns the kingdom with Brazil, Russia, India, China, and South Africa, along with other new members including the UAE, Egypt, Iran, and Ethiopia. The decision reflects Saudi Arabia's efforts to diversify economic partnerships amid changing geopolitical dynamics, particularly with the U.S. and China. With China as its largest oil customer, Saudi Arabia's entry into BRICS, led by Chinese advocacy, represents a strategic pivot towards enhancing its economic and geopolitical stance globally.

Join Mike Maloney for a deep dive into the current economic landscape and 2024 market predictions with Paul Brownstein. Paul is extremely bullish on Bitcoin and gold as wise alternatives to fiat currencies. Why? It's all about adopting a risk-first strategy in an unpredictable economy. Paul says a blend of patience and strategic defense can set you up for speculative gains. Brownstein, with his unique blend of experience from the restaurant industry to trading and derivatives, brings a fresh perspective on market trends, inflation, and the looming crisis.

HSBC has made a significant leap in the financial sector by introducing the first institutional trades of tokenised gold. Utilizing Distributed Ledger Technology (DLT), HSBC has tokenised the ownership of physical gold stored in its London vault. This move is part of HSBC's broader digital strategy, which includes HSBC Orion, their platform for digital assets launched earlier this year, and plans to unveil a digital assets custody service in 2024.

Gold's performance in 2023 defied expectations by thriving amidst global economic challenges. This resilience was fueled by a mix of market volatility, geopolitical unrest, and shifts in US policies. In 2024, gold's appeal is expected to surge due to three key factors. Firstly, a shift towards a more dovish US monetary policy, coupled with a slowdown in US economic growth and stabilizing inflation, bodes well for gold. Secondly, a weakening US dollar, as the global economy gains on the US and central banks continue their gold-buying spree, further supports gold's prospects. Finally, gold benefits from bullish investor sentiment, driven by ongoing risks and uncertainties.

Now that the 2024 Happy New Year celebrations are behind us, let's look at some good news.  Global conventional oil discoveries hit an ALL-TIME Record low in 2023.  Even though global exploration spending increased last year, discoveries fell to the lowest level in the past 100 years...

Happy New Year from me and everybody at SchiffGold! Here's hoping it is an absolutely fantastic year.
So, have you made any New Year's resolutions?

While the market applauds record U.S. oil production surpassing Saudi Arabia and Russia, how sustainable is this supply?  Also, what is happening with the critical U.S. diesel supply and inventories?  And how would a recession impact U.S. fuel consumption in 2024...

On the final trading day, metal prices showed mixed results, with copper and aluminum experiencing slight increases, while gold slightly decreased. Despite this, gold is poised to conclude the year with a 14% gain, marking a strong performance amidst a volatile year for metals. Copper is expected to finish the year over 3% higher, and aluminum approximately unchanged.