Precious metals news

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.

China, the world's second-largest economy, has been significantly reducing its holdings of U.S. Treasury securities for over a decade. The U.S. Treasury Department reports that China's holdings have dropped to their lowest in 14 years, decreasing by over $491 billion from a peak of $1.297 trillion in May 2013 to $805.4 billion as of August 2023. This divestment coincides with Moody's changing the U.S. credit rating outlook from stable to negative, citing America's deteriorating financial position and political gridlock. While this doesn't guarantee a credit rating cut, Moody's indicates an increased likelihood of such a move in the future, especially if effective fiscal measures to manage government spending or increase revenues are not implemented.

Biden, Congress, and The Federal Reserve are increasingly disconnected from the struggles of America's middle class. The Federal Reserve, a private entity, has the unique ability to pass its massive unrealized losses, now exceeding $1.3 trillion, onto the U.S. Treasury. This situation highlights the Fed's controversial role in interest rate manipulation and its impact on the national economy. Additionally, FDIC-insured banks are facing significant losses, further exacerbated by negative bank credit growth for 16 consecutive weeks. These developments call into question the current financial policies and the very existence of the Federal Reserve in its current form.

The Biden administration claims to have made Thanksgiving more affordable, but this perspective is challenged by the reality of persistently high prices. Since Biden's inauguration, turkey prices have increased by 235% and gasoline prices are still up by 47%, despite recent minor decreases. The administration attributes the recent price declines to their efforts, but these reductions are more likely linked to a decrease in M2 Money growth, now at -3.6% year-over-year, following extensive federal spending during the Covid crisis. The significant rise in turkey prices under Biden's tenure is a stark reminder of the ongoing economic challenges.

In the past year, global interest rates have sharply increased from historic lows, with notable disruptions including a UK market panic and a U.S. banking crisis. Despite easing inflation, there's skepticism about achieving a "soft landing" for the economy. Financial historian Edward Chancellor, in his discussion on Merryn Talks Money, highlights that low interest rates for extended periods have led to the misallocation of capital across numerous sectors, indicating deeper economic issues beyond just controlling inflation.

Did you know Thanksgiving almost didn't happen thanks to the Pilgrims' experiment with socialism? It didn't work. Fortunately, they figured out some economic truths and the rest is history. In this episode of the Friday Gold Wrap, host Mike Maharrey tells the Thanksgiving story you almost certainly didn't hear in school. He also explains why today is called Black Friday.