Precious metals news

]China and Saudi Arabia have signed a local-currency swap agreement worth around $7 billion, deepening their ties as countries across the Middle East look to shift more of their non-oil trade away from the dollar.

Silver prices are projected to reach a bullish target of $34.70 in 2024, with potential to climb to $48 soon after, possibly by mid-2025. This forecast is based on the confirmation of a topping pattern in Yields and the weakening momentum of the US Dollar, which positively influences precious metals. Key indicators like inflation expectations and the silver Commitments of Traders (CoT) report support a strong bullish trend for silver in 2024. The rise to near $36 USD will likely pave the way for silver to approach its all-time highs. Silver is tipped as the precious metal to watch in 2024.

Silver's industrial demand is projected to surge by 8% to a record 632 million ounces in 2023, driven by investments in photovoltaics, power grids, and 5G networks. Additionally, growth in consumer electronics and increased vehicle production are contributing to this heightened demand for silver. These insights were shared by Philip Newman and Sarah Tomlinson from Metals Focus at the Silver Institute’s Annual Dinner, highlighting silver's expanding role in various industries and its growing market potential.

The Bureau of Labor Statistics is under fire for allegedly distorting CPI data, eroding trust in key economic reports. The recent CPI showing slight inflation decline triggered an illogical market surge, hinting at data manipulation. Meanwhile, Congress is mired in dysfunction, evading crucial fiscal decisions and engaging in physical altercations. This chaos reflects a deep crisis in U.S. economic governance and political stability, with diminishing confidence in institutions and financial integrity.

Join Alan Hibbard for a condensed look at the biggest stories in precious metals this week.

While CPI inflation is at 3.2%, inflation is much higher in many basic necessities: 1. Car Insurance Inflation: 19.2% 2. Car Repair Inflation: 9.6% 3. Transportation Inflation: 9.2% 4. Rent Inflation: 7.2% 5. Homeowner Inflation: 6.8% 6. Food Away From Home Inflation: 5.4% 7. Cereals & Bakery Products Inflation: 4.2% While headline inflation is down from its highs, many basic necessities are still seeing 5%+ inflation. It's also worth noting that we do NOT have deflation, we have disinflation. While the rate of inflation is DOWN, prices are still RISING. Affordability is still getting worse.

Citadel founder Ken Griffin criticized the Biden administration's 'Bidenomics' campaign, arguing it fails to address the real economic struggles Americans face. Despite media support, Bidenomics hasn't improved President Biden's approval ratings amid high inflation and negative real wage growth. Griffin suggested that Americans are not convinced by claims of economic success, as they grapple with high living costs and financial strain. He also mentioned Miami's potential to become a new financial center, rivaling New York City.

Ray Dalio, founder of Bridgewater Associates, warns that the soaring U.S. government debt, now at $33.7 trillion, is nearing a critical point. The rapid 45% increase in debt since early 2020 and a $1.7 trillion deficit last year have escalated the financial burden, with $659 billion spent on debt interest in fiscal 2023. Dalio highlights the danger of this trend, noting that the U.S. is reaching an inflection point where continued spending and borrowing will exacerbate existing political and social issues. Additionally, he points out a supply-demand problem in U.S. Treasurys, with foreign buyers, who constitute 40% of the market, reducing their holdings significantly.

U.S. government spending has skyrocketed, with $6.3 trillion spent as of Q2-2023, and mandatory expenses consuming 113% of revenue, requiring heavy debt issuance. Since 2008, Congress has abandoned traditional budgeting, contributing to this financial strain. Soaring deficits and debts now challenge fiscal sustainability, with interest payments reaching levels not seen since the 1990s. This growing financial burden necessitates serious fiscal responsibility from both political parties and Congress. If left unchecked, especially with a recession looming before the 2024 election, it could trigger significant political upheaval.

The U.S. national debt clock has passed a staggering $33 trillion, which begs the question – what comes next?

Everybody seems convinced that the Federal Reserve has won the inflation fight, there will be no more interest rate hikes, and rate cuts are right around the corner. But as Friday Gold Wrap host Mike Maharrey reminds us, it's not over until the fat lady sings. And she hasn't sung a note. In this episode, he breaks down the latest CPI data and explains why the victory dance might be premature.

The U.S. is grappling with significant financial challenges under the Biden administration, with Treasury Secretary Janet Yellen facing criticism for her handling of government spending. The national debt has soared to $33.7 trillion, translating to a staggering $259,103 per taxpayer, and the debt-to-GDP ratio has reached 138%. Additionally, unfunded liabilities like Social Security, Medicare, and Medicaid have reached an alarming $211.6 trillion, equaling about $629,000 per citizen. Despite claims of economic progress, the reality includes record-high budget deficits, unaffordable rents for many Americans, and a decline in real hourly compensation by 5.1% under Biden's tenure, contradicting the administration's narrative of successful economic policy.

The U.S. Treasury Department faces mounting challenges due to increasing deficits and diminished investor interest in long-term U.S. debt. As high interest rates turn investors away from longer-term Treasurys, the Treasury is being forced to deviate from its traditional approach of "regular and predictable" debt sales. This shift signals potential instability and increased complexity in managing the nation's burgeoning deficit.

Crude demand is waning, with China, the largest oil importer, reducing refinery processing rates in October and US unemployment benefits hitting a nearly two-year high. This indicates a slowdown in oil consumption in both the world's largest oil importer and the biggest crude consumer, hinting at a deflationary trend in the global crude market.

Brad Gerstner, CEO of Altimeter Capital, warns that AI will lead to the largest displacement of human labor in capitalism's history. This shift won't result in immediate mass layoffs, but rather a gradual impact on employment trends. AI's efficiency improvements mean companies can achieve more with fewer employees. For instance, a 50% increase in engineer productivity coupled with a company's 20% growth rate could eliminate the need for additional engineering hires. This slow yet profound change in hiring practices due to AI advancements will significantly reshape the job market.

The Pentagon has once again failed its annual independent audit due to insufficient financial data for a full evaluation. Despite efforts to audit its $3.8 trillion in assets and $4 trillion in liabilities, the Defense Department has yet to pass any audit since they became federally required in 2018. This consistent failure highlights ongoing challenges in the department's financial accountability and transparency.

The Biden-Xi meeting, despite diplomatic overtures, doesn't change China's goal to outpace U.S. global dominance. Minor agreements on climate and AI don't soften the core strategic rivalry. China's military and tech advancements signal its intent for regional and global influence. This evolving competition underscores the stark reality of the U.S.'s challenge in maintaining its international leadership role.

Well... there have been some interesting things happening in the Silver Market that I thought I'd share in this update.  You have to see how much silver India imported last month... WOW!!  I also answer some of the excellent questions from the GoldMoney post...

Gold prices surged 1.1% to $1,986 per ounce following unexpectedly high US jobless claims, signaling a potential economic slowdown. This development has led to market speculation that the Federal Reserve might pause its rate hikes in December, after significant increases in recent months. The likelihood of rates remaining unchanged next month is now nearly 100%, as per the CME FedWatch tool.

In 1923, Germany halted its central bank's debt monetization and introduced the Rentenmark to address hyperinflation. This crisis stemmed from World War I, when the gold-backed Reichsmark was suspended and excessive paper money printing began to fund the war and reparations. The situation deteriorated with political turmoil and foreign occupation, leading to economic chaos. This underscored the perils of unchecked fiat currency systems and highlighted the need for stringent monetary reforms.