Precious metals news

The physical silver market has experienced a significant imbalance for the last three years, with annual demand consistently outstripping supply. This has led to a 'structural deficit,' a term used by the Silver Institute to describe the prolonged shortfall driven by underlying structural factors like technological advancements and increasing industrial demand. Consequently, this deficit is being met by depleting the world’s finite above-ground silver reserves. The Silver Institute, a Washington D.C.-based trade association akin to the World Gold Council and composed mainly of silver mining companies and refiners, relies on data from Metals Focus, a London-based precious metals consultancy, for its supply and demand analysis.

Gold prices are consolidating as the US Dollar remains steady near recent lows, with negative impacts from hawkish Federal Reserve (Fed) officials subsiding. The current mild risk appetite, spurred by expectations of an end to the global tightening cycle, is supporting gold. Gold (XAU/USD) has started the week positively, aided by a slight retreat in the US Dollar and low US bond yields. Despite initial effects of hawkish Fed comments last Friday, the Dollar is weakening again at the week's start. Investors are now focusing on upcoming US Q3 GDP data and the Personal Consumption Expenditures (PCE) Prices Index for further clues on potential rate cuts, which could influence US Dollar volatility and help determine gold's short-term trajectory.

During a recent visit to China, Russian First Deputy Prime Minister Andrei Belousov revealed that 95% of trade between Russia and China this year has been conducted using the Russian ruble and Chinese yuan. Additionally, from January to October, 68% of all Russian trade utilized these two currencies, as stated by Russian Economic Development Minister Maksim Reshetnikov. The yuan is also being used by Russia for commercial transactions with several countries, including Mongolia, the Philippines, Malaysia, the UAE, Thailand, Japan, Tajikistan, and Singapore. This shift highlights a growing trend towards de-dollarization, particularly in the economies of the Global South, with 2023 marking a significant acceleration in this process. The politicization and use of the dollar as a political tool are cited as key drivers behind this inevitable trend towards de-dollarization.

The Federal Reserve recently surrendered in its inflation fight. But price inflation is nowhere near the 2% target. Why did the Fed raise the white flag prematurely?
One of the major reasons is debt.
The world is buried under record debt levels and the global economy can't function in a high interest rate environment.

Peter Schiff recently appeared on Real America with Dan Ball to talk about the state of the US economy. He described it as a disaster and said Bidenomics consists of putting lipstick on a pig.

In this eye-opening video, Mike Maloney and Ronnie Stoeferle explore the recent surge in central bank gold buying, pointing to a broader global trend.

Every once in a while, I find some positive news, but unfortunately, today wasn't one of those days.  If you look at what's happening in the Insurance Industry, this situation is rapidly going from bad to worse.  We can see this in the escalating premiums and cancelation of coverage...

Gold prices saw a modest increase on Monday, primarily influenced by a weaker dollar, as investors' attention is now on key U.S. inflation data that might offer insights into the Federal Reserve's future interest rate decisions. Spot gold rose 0.2% to $2,022.19 per ounce, while U.S. gold futures held steady. Market analysts highlight a cautious but bullish sentiment among traders, buoyed by factors such as softer monetary policies, particularly from the Fed, and ongoing geopolitical tensions... With the Fed's recent pause in rate hikes and anticipation of a potential cut in March, lower bond yields and interest rates are making gold more attractive. Investors are keenly awaiting further U.S. economic reports, including the November core personal consumption expenditure index, to gauge future trends, with predictions suggesting gold prices might average around $2,050 an ounce in 2024.

Austan Goolsbee, President of the Chicago Federal Reserve Bank, emphasized on Sunday that the Federal Reserve's battle against inflation is ongoing, despite positive signs of easing inflationary pressures without causing a recession. Last week, the Federal Open Market Committee (FOMC), the Fed's policy-making body, refrained from further rate hikes, maintaining the federal funds rate at 5.25% to 5.5%, a 22-year high. This decision follows a series of aggressive rate increases initiated last year to curb inflation, which had soared to a 40-year peak of 9.1% in June 2022 and has since fallen to 3.1% in November, still above the Fed's 2% goal. Speaking on CBS' "Face the Nation," Goolsbee cautioned that, despite significant progress in 2023, the inflation fight is not yet complete. He highlighted that historical trends show efforts to significantly lower inflation are typically linked with major recessions.

Our 2024 silver forecast predicts a target of $34.70 USD for silver bullion. We emphasize silver as the top precious metal to buy for 2024, citing a developing silver shortage. We are confident in these forecasts, though they require patience for silver prices to rise, likely at a time when the market least expects it.

A World Gold Council report indicates that wealth preservation is a top priority for affluent Chinese over wealth growth. Surveying 218 wealthy Chinese, each with an average investment of 6 million yuan ($837,670), the report found that 90% are interested in or have already invested in gold, highlighting its importance in their financial strategies.

ChatGPT Asian central banks are increasingly buying gold, driven by a trend of de-dollarization to reduce dependence on the US dollar. This shift has been spurred by concerns over asset safety, especially following the US seizure of Russia's sizable foreign exchange reserves.

2024 is projected to be a tumultuous year, with a critical U.S. presidential election, global recession, ongoing conflicts in Ukraine and Israel-Gaza, and a deepening banking crisis. Financial markets face a tough year, with stocks likely to decline and gold and energy remaining stable. U.S. government securities could offer positive returns amidst widespread economic challenges.

The U.S. Federal government and California are facing severe fiscal challenges due to a weakening economy and imprudent fiscal policies. Excessive spending and borrowing at the federal level, especially under Biden's administration, have significantly restricted the Treasury's options to respond to potential recessions or depressions.

The Dow Jones index hit record highs last week. But when you price the index in real money — gold — it remains far below record levels.

John Paulson emphasizes the scarcity of investable gold, a small fraction compared to global financial assets worth $200 trillion. Recent trends have spotlighted gold, now at record highs and central to 2024 financial forecasts. Recognized increasingly as a broad hedge against diverse man-made risks, gold is gaining favor as a stable investment, especially in contrast to the unpredictability of complex financial products on Wall Street.

Amidst central banks globally acquiring gold at record rates, U.S. Representative Alex Mooney (R-WV) is questioning Federal Reserve Chairman Jerome Powell about gold, which is trading at all-time highs in most currencies. There are claims that Germany's Bundesbank is looking to repatriate some of its gold held at the Federal Reserve Bank of New York.

This week, gold prices soared following an unexpected dovish turn from the Federal Open Market Committee. The FOMC's statement suggested reduced likelihood of further rate hikes, and crucially, top Fed officials lowered their forecast for the federal-funds rate in 2024. This development led to a weakening of the US dollar, triggering significant gold-futures buying and boosting gold prices. This major shift in monetary policy stance enhances gold's bullish outlook, likely increasing its investment appeal.

Amid recent yen volatility, any changes in the Bank of Japan's policies or inflation outlook could heavily impact global markets. With Japan's economy contracting more than expected, the BoJ is unlikely to change interest rates in 2023. This comes as the Federal Reserve signals potential rate cuts next year, a move that prompted European Central Bank and Bank of England to caution against easing monetary policy too soon due to persistent high inflation.

Wealthy nations are generating higher tax revenues than in recent decades to fund increased state spending, as rising interest rates make borrowing less appealing. According to the OECD, tax revenues as a percentage of economic output have reached record highs in major economies like France, Japan, and South Korea.