Precious metals news

What's going on with US banks?
Over the last month, loans outstanding in the Federal Reserve bank bailout program increased by $17.24 billion. It was the second month we've seen borrowing from the Bank Term Funding Program (BTFP) surge. And the pace of borrowing is increasing.

Bills filed in Florida and Oklahoma for the 2024 legislative session would create state precious metals bullion depositories. State-run bullion depositories would not only create a place to store precious metals; they could also encourage the use of sound money in those states and set the stage to undermine the Federal Reserve’s monopoly on money.

If history is any indication, January will be a good month for gold.
According to analysis by the World Gold Council, gold tends to perform well in the first month of the year.

What's the Future of Global Energy??  I sat down with Jesse Day for the Vancouver Resource Investment Conference and discussed energy with Brian Gitt.  While Brian believes the world has a tremendous amount of oil reserves remaining, I believe this is vastly overstated...

Would you rather have silver and gold? Or would you rather have peppermint?
You might be under the impression Yukon Cornelius of Rudolph the Red Nose Reindeer fame was after riches of silver and gold.
He wasn't.
I mean, I hate to mess with your Christmas memories, but facts are facts.

Commerzbank's latest analysis suggests that the price of silver, currently at around $24 and consistent with its level at the beginning of the year, is poised for a significant increase. The bank forecasts a rise in silver prices to $30 by the end of 2024, driven by growing industrial demand, particularly in "green" sectors. This prediction comes after the Silver Institute's recent upward revision of industrial demand for silver. Additionally, Metals Focus anticipates a continued deficit in the silver market.

Explore the critical concept of the velocity of money and its historical significance.

Mike Maloney has an uncanny ability to foresee major financial shifts. Take a look at some of his top insights of the past year.

A Wall Street veteran warns that American households, with historically high equity holdings, could face "seven lean years" of stock market returns. According to Joseph Lavorgna, the U.S. household equity share of total financial assets stood at 36.3% in the third quarter, down from a record 40.5% but still notably high. This elevated equity exposure is significant because historically, high percentages of equities in investment portfolios have been associated with below-average future stock returns.

The concept of the 'January effect' in gold pricing, akin to the well-known stock market trend where prices rise early in the year, has been a topic of interest for investors. Gold tends to exhibit strong performance in January as well as late summer, with the January effect being statistically more significant. Since 1971, gold has averaged a 1.79% return in January, nearly triple its long-term monthly average, and has shown positive January returns about 60% of the time, increasing to nearly 70% since 2000. This trend may be attributed to factors like portfolio rebalancing, seasonal dips in real yields, and gold re-stocking in East Asia before the lunar New Year. However, it's important to note that gold prices do not always rise in January...

The Bank of China's Shanghai branch has successfully executed its first cross-border settlement using China's digital currency, the e-CNY, for a gold transaction worth 100 million yuan ($14 million) through the Shanghai Financial Exchange International Board. This significant move underscores the branch's active role in the pilot tests and application of the digital yuan, having previously utilized it for iron ore imports and collaborating with international banks like France's BNP Paribas to enhance its global usage. China's e-CNY is one of the most advanced central bank digital currency (CBDC) initiatives globally, with an initial domestic focus gradually expanding to cross-border trials, including in Hong Kong.

Despite record highs in gold and frozen orange-juice prices, 2023 proved challenging for the broader commodities market. Key commodities indexes, including the S&P GSCI and the Bloomberg Commodity Index, are poised to register their largest annual losses in five years, primarily due to declines in natural gas, coal, and grains. The S&P GSCI traded 10% lower year to date, with its energy sector experiencing the most significant drop of 12%. Similarly, the Bloomberg Commodity Index saw a 12% decline, with its energy subindex falling by 24%. These indexes are on track for their steepest yearly percentage drops since 2018.

Global retailers, especially those dealing in apparel, household items, and white goods, are facing heightened disruption risks due to increased attacks by Iran-backed Yemeni militants in the lower Red Sea region. These attacks pose a significant threat to the vital Suez Canal trade route, prompting some shipping companies to contemplate longer alternative routes, such as navigating around the Horn of Africa. This change in shipping strategy could result in extended delivery times and higher prices for various goods, impacting the global supply chain.

Recent reports on U.S. consumer and producer prices indicate a significant easing in inflation, aligning with the Federal Reserve's 2% annual target. This development, emerging during the Fed's policy meeting, suggests inflation has slowed over the last six months, prompting revisions in economic projections. Analysts now anticipate a continued trend of subdued inflation in the near future.

Despite widespread predictions last year, including a forecast by Bloomberg Economics' Chief US Economist Anna Wong, of a 2023 recession in the U.S. economy, recent data paints a more resilient picture. Contrary to the anticipated downturn, the U.S. economy has demonstrated strength, with unemployment rates remaining at multi-decade lows and inflation aligning closely with the Federal Reserve's 2% target. However, the economic landscape is not without its complexities, as public sentiment remains markedly pessimistic regarding the economic outlook. In a recent discussion, Wong explores the nuances of these conflicting signals, the unexpected resilience of the U.S. economy in 2023, and key factors to monitor in the coming year.

US stocks surged with the promise of interest rate cuts. Then stocks tanked when some Fed officials tried to walk that promise back. Then they surged again when some weak economic data put rate cuts back on the table. As Friday Gold Wrap host Mike Maharrey put it, easy money is one heck of a drug! In this episode, he explains the impact of easy money on the economy and the markets, and he speculates about the future.

In November 1910, six of the world’s most powerful men met in secret, off the coast of Georgia, to write a plan to reform the nation's banking system...

The Great Taking... a massive threat of global asset confiscation, or something else entirely?  With David Webb's new book and documentary on "The Great Taking" spreading throughout social media and the industry, I thought I would do my DIGGING... and BOY, what I found...

The United States has seen a staggering 12% increase in homelessness, reaching its highest level ever recorded due to skyrocketing rents and the reduction in COVID-19 pandemic assistance. Approximately 653,000 people were found homeless in the latest survey, the highest since the annual point-in-time count began in 2007, marking an increase of around 70,650 from the previous year. A significant part of this surge is attributed to individuals experiencing homelessness for the first time, alongside a notable rise in family homelessness, reversing a decreasing trend that started in 2012.

Over the past few years, the specter of a recession has loomed large, with numerous analysts predicting an economic downturn. This forecast has led to a heightened sense of caution among various stakeholders, ranging from corporations to individual investors, all bracing for the potential impact of a sluggish consumer demand. As we approach 2024, the key question arises: do analysts continue to anticipate a recession? This ongoing debate sees global banks adopting an optimistic stance, in contrast to the more guarded approach of US companies, reflecting a divergence in perspectives on the economic trajectory ahead.