Precious metals news

The popularity of buy-now, pay-later (BNPL) options is rising as consumers, grappling with other debts like student loans and credit cards, face the highest interest rates in years. These short-term loans offer a way to spread out payments over several months. The Federal Reserve Bank of New York notes that younger consumers, often with limited access to credit cards, are increasingly opting for BNPL services.

About 25% of Americans are still paying off 2022 holiday debt, per WalletHub's survey. With higher interest rates, now nearly 21% up from 16% since March 2020, credit card debt is becoming costlier and harder to pay off. Bankrate's Ted Rossman advises against accruing more debt, noting even a $1,000 balance could lead to 40 months of debt and $390 in interest at the current rate if only minimum payments are made.

Chinese investors are turning to gold.
China Daily called the demand for gold "robust" through the first three quarters of 2023 and said it is expected to continue "as economic and geopolitical uncertainties may drive up investors' purchases of safe-haven assets."

Gold prices reached a six-month high, surpassing $2,000 per ounce, driven by a weaker dollar and expectations that U.S. interest rate hikes may soon end. Spot gold increased by 0.5% to $2,012.33 per ounce, having earlier hit $2,017.82, its highest since May 16. U.S. gold futures also rose by 0.5% to $2,013.10. The dollar's 0.1% decline against major currencies, reaching a two-month low last week, has made gold more affordable for holders of other currencies.

The U.S. government's national debt has surged by over $102.17 billion in just 15 days, growing from $33.637 trillion to $33.740 trillion as of November 16th, according to the FiscalData system. Concurrently, the Heritage Foundation's EJ Antoni criticizes the Biden administration for excessive spending, warning of a looming financial crisis where the government may struggle to pay its bills. The recent downgrade in the U.S. debt outlook underscores the growing risk for taxpayers and bondholders, including those with retirement funds.

A Federal Reserve Bank of Boston study revealed that as of July, consumers with household incomes below $50,000 and delinquent accounts were using 80 to 90 percent of their available credit. This high utilization leaves them with minimal credit to buffer against financial hardships. The report also noted that across all income groups, the average credit card utilization rates were higher than the levels seen in February 2020.

Biden's declining political standing, just 11 months before Election Day, is attributed to several factors: a loss of support among traditionally reliable Democratic voters, particularly young people; the escalation of conflict in the Middle East; and the emergence of independent and third-party candidates who pose a threat to draw votes away from both Biden and Trump.

A surge of congressional resignations across parties and chambers is occurring amidst significant dysfunction in Capitol Hill, primarily driven by House Republicans. The House G.O.P. majority has recently ousted its leader, faced an internal battle for a new speaker, and struggled with federal funding issues. Hardline right-wing members are opposing viable spending bills and criticizing their new leader for collaborating with Democrats to prevent a government shutdown.

Major banks like PNC Bank and JPMorgan Chase are closing multiple branches across various states, continuing a trend of increasing branch shutdowns in recent years. In one week, PNC Bank filed to close 19 branches, and JPMorgan Chase filed for 18 closures in different states. Citizens Bank plans to shut eight branches, while U.S. Bank has seven closures in the pipeline. Bank of America is closing five branches, and Citibank along with several smaller banks are also reducing their physical presence, totaling 64 branch closures filed recently.

The financial crisis that kicked off in March continues to bubble under the surface.
Total outstanding loans in the Federal Reserve's bank bailout program jumped by just over $5 billion in November.

Can new mining projects in the next few years halt the ongoing decline in the global silver mine supply?  Logic suggests this... but it hasn't been the case since the world's silver production peaked in 2016.  Even with 60 million oz of new silver supply, global mine production grinds lower...

It's one thing when the Western wind power companies lose money, but another thing entirely when it happens to the largest firm in China.  Why?  China is supposed to be the lowest-cost producer in the world.  This is just another nail in the coffin for the Green Energy Industry...

Watch now to benefit from what's coming.

Ahead of a possible challenge on the $2000 level, gold consolidated recent rises this week, and silver held up well. This morning in European trade, gold was $1995, up $15 from last Friday’s close, and silver was $23.70, unchanged on the week. Comex volumes were healthy, despite the Thanksgiving holiday in the US.
Open Interest in both Comex contracts is rising, as shown below.

Gold’s OI is now over 500,000 contracts, which is putting pressure on the shorts, predominantly bullion bank trading desks, while silver still remains subdued. From the Commitment of Traders reports, the position of the gold swaps (mainly bullion banks) is shown below and reflects the developing squeeze on their positions.

The Swaps have a problem. Their traditional target, hapless money managers, carries a smaller net long position than the Other Reported category, some of which are using Comex paper to secure delivery and is less susceptible to takedowns. Additionally, the Producer/Mer...

Silver uniquely bridges the gap between precious and industrial metals, offering a dual perspective as both an investment and a risk protection vehicle. When analyzing silver, investors are simultaneously evaluating a precious metal, akin to gold, and an industrial metal, similar to copper. Its versatility makes silver an ideal choice for those uncertain about whether to focus on precious or industrial metals in their investment strategy.

Gold is showing strength in a quiet market, poised to re-test the $2,000/oz. level and its recent high near $2,010/oz. Despite rising U.S. government bond yields, gold maintains its position, though low trading volumes may be influencing market dynamics. Today's flash S&P PMIs release could introduce some volatility, but overall market activity is expected to stay subdued until next week. Meanwhile, U.S. Treasury bond yields are climbing, with the 2-year yield now at 4.95%, ahead of significant short- to medium-term Treasury auctions totaling $148 billion next week. This upward trend in yields suggests a favorable environment for gold as traders seek value amid these bond market movements.

A recent Wall Street Journal/NORC survey reveals that only 36% of voters believe the American dream is still attainable, a significant decline from 53% in 2012 and 48% in 2016. This perception shift indicates growing skepticism among Americans about the feasibility of achieving success through hard work, including goals like homeownership. This change in sentiment reflects a notable drop in confidence compared to last year, when 68% felt that hard work could lead to getting ahead.

The Bureau of Labor Statistics reported that year-over-year inflation continued to rise, marking the thirty-second consecutive month of inflation exceeding the Federal Reserve's two-percent target. In October, the Consumer Price Index (CPI) increased by 3.2% compared to the same month last year, the slowest pace since July. On a month-over-month basis, the CPI saw a negligible change, rising only 0.04% from September to October, essentially registering zero percent growth. This data indicates ongoing inflationary pressure in the U.S. economy.

During the 1970s gold went up 15-fold, even faster than oil. Silver went up 8-fold. The U.S. economy's current state of high inflation and slow growth mirrors the 1970s' stagflation, but with much higher national and private debt today. This situation limits the Federal Reserve's ability to aggressively combat inflation without triggering a financial crisis. In this context, investing in gold becomes a prudent strategy, as it has historically maintained value during periods of economic uncertainty and inflation.

The overuse of the U.S. dollar in financial warfare has led to its declining global dominance, a concern raised a decade ago and now being realized as countries like Russia and China reduce their reliance on the dollar. U.S. Treasury Secretary Janet Yellen acknowledges the risk sanctions pose to the dollar's hegemony. Recent proposals to seize Russian assets for Ukraine's war efforts could further undermine the dollar, potentially triggering a broader financial crisis and underscoring the need for careful U.S. policy decisions regarding the dollar's role in international finance.