Precious metals news

Regional and community banks, which have heavily invested in commercial real estate, now face risks as the Federal Reserve raises interest rates. With rising rates, banks must offer higher deposit rates to retain customers, reducing the funds available for lending and absorbing loan losses. As office vacancies surge in major cities, real estate investors struggle to refinance debt, leading to defaults and losses for lenders. This situation threatens the commercial real estate market and the banking system, causing concerns among industry experts.

Gold prices in Japan hit an all-time high due to the yen's historic slide against the US dollar and rising inflation concerns. The retail gold price in Japan, now above ¥10,000 per gram, tracks global spot prices influenced by the pandemic, the Ukraine conflict, and US-China tensions. Japanese households, with significant cash holdings, are turning to gold as a hedge against inflation. Currency analysts predict the yen will remain weak unless the Bank of Japan tightens its policy and closes the interest rate gap with the US and Europe. Japanese consumers are increasingly seeking inflation protection as consumer prices rise after years of deflation.

Manufacturing contracts, services expand. S&P Global US Services PMI disappoints, while ISM Services soars to strongest since February. Survey responses reflect opposing views. Rising stagflation risks loom as prices surge amid slowing business activity. Chris Williamson of S&P Global Market Intelligence suggests a faltering economic growth outlook, with persisting wage growth and upward pressure on costs.

Stimulus ended, savings depleting, and rents soaring - a troubling credit cycle emerges. Mortgage delinquencies remain low, thanks to rising home prices. However, consumer loans, especially auto loans, are problematic. Younger borrowers face higher delinquency rates, reaching a 13-year peak for 18-39-year-olds. This could flood used car lots with repossessions, potentially easing inflation. Credit card delinquencies are even more concerning, doubling lately, with one in 12 borrowers aged 18-29 over 90 days late on payments, signaling growing financial strain and economic turbulence.

Soaring living costs and stagnant standards of living are straining American households. Consumer debt has risen 19% under Biden, while public debt has increased by 16.5%. Over 60% of Americans are living paycheck to paycheck, with debt levels reaching unprecedented highs. UBS predicts that 50,000 stores could close in the US by 2027 due to reduced consumer spending and the shift to e-commerce. Housing affordability is at its worst this century, with a 7.48% average 30-year fixed mortgage rate in August 2023. Home prices are dropping, and many homeowners are facing negative equity.

Tropical Storm Lee is swiftly intensifying, set to undergo "explosive intensification" into an "extremely dangerous" Category 4 hurricane by the weekend as it moves west-northwest. While its exact path isn't certain, it poses a significant threat. Current predictions keep it north of the Leeward Islands and Puerto Rico, but the trajectory may change. Beyond five days, it could turn northeast, away from the U.S. mainland, but uncertainties persist. Preparations and monitoring continue.

Biden heads to G20 in India, but Xi and Putin won't attend. Divisions on Ukraine, fossil fuels, and global debt restructuring may hinder progress. Climate change and Russia's war in Ukraine are on the agenda. China's absence impacts economic cooperation, potentially hampering US efforts. India asserts itself as a global player. G20 faces resistance to fossil fuel phase-outs due to economic concerns from countries like Saudi Arabia and Russia.

US home-purchase mortgage applications hit a 28-year low due to high mortgage rates. The 30-year fixed rate, at 7.21%, is near historic highs. Overall mortgage demand also fell to a nearly 27-year low, pushing housing affordability to its worst point in decades. High rates make homeownership less affordable, and low-rate holders are reluctant to sell, limiting supply and driving up prices. Until borrowing costs drop, the issue may persist, despite new construction. The Fed doesn't seem to lower rates soon, aiming to curb inflation.

Bidenomics appears to be heading into a dark phase. The real-time GDP tracker from the St. Louis Fed, Nowcast, is projecting a -0.07% GDP for Q3, coinciding with a sharp decline in M2 money growth. However, if you're looking for optimism, the Atlanta Fed's GDPNow estimate, led by housing economist Raphael Bostic, paints a brighter picture with a Q3 GDP projection of 5.6%. The question on many minds is when the Federal Reserve will return to its days of low-interest rates.

Japan and China have raised concerns over the rapid depreciation of the yen and yuan, respectively, as both currencies face pressure from the strengthening US dollar. The yen has fallen nearly 8% against the US dollar since mid-July, while the yuan has declined more than 6% since May. Traders anticipate the Federal Reserve will maintain higher interest rates for an extended period, causing pressure on other currencies like the euro and pound, which may need to cut rates faster to mitigate the impact of rising borrowing costs.

Japan and China have raised concerns over the rapid depreciation of the yen and yuan, respectively, as both currencies face pressure from the strengthening US dollar. The yen has fallen nearly 8% against the US dollar since mid-July, while the yuan has declined more than 6% since May. Traders anticipate the Federal Reserve will maintain higher interest rates for an extended period, causing pressure on other currencies like the euro and pound, which may need to cut rates faster to mitigate the impact of rising borrowing costs.

Silver is fundamentally a monetary metal and its price tends to track with gold over time. But it is also an important element in technology and industry. Industrial use makes up more than half of the demand for silver.
We're seeing new uses for silver in technology all the time. The most recent issue of Silver News from the Silver Institute highlights some of these new developments.

Peter Schiff recently appeared on Fox Digital and poured a bucket of cold water on those who believe the Federal Reserve is winning the inflation fight. In fact, the Fed isn't making any progress at all.

Unfortunately, most investors are sleep-walking into the "Collateral Trap" as massive U.S. Treasury issuance has totally disconnected from the physical economy.  It's truly amazing that the global financial system leverages debt based upon U.S. Treasuries, which are also debt...

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Global central banks continued adding to their gold reserves in July with healthy net purchases of 55 tons. While there was a slowdown compared to the previous month, the trend of net buying remains intact. Notably, the People's Bank of China was the largest buyer, adding 23 tons in July and solidifying its position as the leading buyer for the year. The National Bank of Poland increased its gold holdings by 22 tons, marking the fourth consecutive month of net buying. The Central Bank of Turkey, despite being a net seller for the year, turned into a net buyer in July. Other countries including Qatar, Singapore, and the Czech Republic also made gold purchases.

The federal deficit is set to nearly double this year, reaching $2 trillion, compared to last year's $1 trillion. This unprecedented level of deficits, not tied to war or crisis, is concerning. The massive spending imbalance contributes to higher interest rates, impacting consumers and mortgages. In the long term, these interest costs will strain federal priorities. Despite strong economic growth, bigger interest payments and lower tax receipts persist, defying the usual deficit reduction trend. The annual deficit was even larger in 2021, hitting $2.8 trillion due to extensive COVID-related spending.

Subsidized green energy projects are faltering as costs soar. Offshore wind and solar developers demand sharp price increases due to rising expenses, despite the Inflation Reduction Act's subsidies. Government-driven demand for renewable projects has worsened inflation, making solar and wind much pricier than natural gas. Even with generous support, EVs, solar, and wind lack scalability due to mineral shortages and labor constraints. Biden's policies worsen inflation and energy instability.

Bloomberg warns of a recessionary chill as the gap between GDP and GDI widens. GDI has been weaker than GDP for four quarters, signaling economic trouble. Declining GDP growth, plummeting job openings, falling labor leverage ratio, and sinking corporate profits suggest a looming downturn. With data indicating a potential recession since 2022 end, an NBER declaration could highlight the Biden administration's economic struggles. The economy faces risks from inflation, falling wages, and political narratives.

Bloomberg warns of a recessionary chill as the gap between GDP and GDI widens. GDI has been weaker than GDP for four quarters, signaling economic trouble. Declining GDP growth, plummeting job openings, falling labor leverage ratio, and sinking corporate profits suggest a looming downturn. With data indicating a potential recession since 2022 end, an NBER declaration could highlight the Biden administration's economic struggles. The economy faces risks from inflation, falling wages, and political narratives. Mainstream media's belated recognition of these issues may hint at a recession's aftermath.