Precious metals news

Iran and Russia's Central Banks are exploring a gold-backed "stable coin" to supplant the US dollar in trade, especially beneficial in Astrakhan's Special Economic Zone. Sergey Glazyev suggests a new pricing strategy: "Fixing the price of oil in gold at the level of 2 barrels per 1g will give a second increase in the price of gold in dollars," according to Credit Suisse's Zoltan Pozsar. This acts as a solid counter to Western 'price ceilings'. Glazyev's approach is gaining attention, potentially laying the groundwork for a "G7 of the East" with the current BRICS nations at its core. As global trade dynamics evolve, such a gold-backed currency could drastically alter the world's financial status quo.

The Argentina peso, already this year's weakest global currency, is predicted to plummet further, warns Bank of America Corp. strategists. Expectations are that the rate might sink to 545 per dollar by year's end and drastically tumble to 1,193 by 2024. Following electoral losses, the government devalued the peso by 18%, exacerbating Argentina's economic challenges. Key concerns include political instability, impending general elections, inflation, and mounting national debt.

The IMF lists the US dollar among its eight primary currencies. Historically backed by gold, today's currencies are now based on devalued paper backed by debt, with the dollar's worth plummeting to 4 cents since 1930. As nations like BRICS hoard gold and seek a return to the gold standard for stability, Western nations deplete their gold reserves. The gold standard would curb excessive government borrowing. With the Federal Reserve's manipulations, the dollar's value has decreased, while gold's value has surged. A push towards digital currency could further erode the traditional financial system, risking the US's economic stability.

BRICS nations are intensifying de-dollarization efforts by settling oil and gas trades in local currencies, threatening the dominance of the U.S. dollar. Ahead of the BRICS summit in Johannesburg, the alliance aims to leverage oil, a global trade linchpin, to promote local currencies. India notably settled crude oil transactions in Rupees with the UAE, while France and Russia have begun transacting in the Chinese Yuan for gas and oil trades respectively. With Saudi Arabia considering the Yuan for oil settlements and eight Arab nations keen to join BRICS, the U.S. dollar's supremacy in global trade could face significant challenges.

Globally, further falls in consumer price inflation are now unlikely and there are yet further interest rate increases to come. Bond yields are already on the rise, and a new phase of a banking crisis will be triggered.
This article looks at the factors that have come together to drive interest rates higher, destabilising the entire global banking system. The contraction of bank credit is in its early stages, and that alone will push up interest costs for borrowers. We have an old fashioned credit crunch on our hands.
A new bout of price inflation, which more accurately is an acceleration of falling purchasing power for currencies, also leads to higher interest rates. Savage bear markets in financial and property values are bound to ensue, driving foreign investors to repatriate their funds.
This will unwind much of the $32 trillion of foreign investment in the fiat dollar which has accumulated in the last fifty-two years. And BRICS’s deliberations for replacing the doll...

During the 1970s, a period marked by high inflation and economic uncertainty, investors witnessed something extraordinary.

As the cost of living skyrockets and financial security feels like a distant dream for many, gold is catching more eyes...

Saudi Arabia's US Treasuries holdings have plummeted 41% since 2020, reaching their lowest levels in over six years with a $3 billion offload in June. In a similar move, China divested $11.3 billion in June. This downturn aligns with a broader shift among Gulf nations, signifying diminishing confidence in US financial assets. Such significant divestments could destabilize US interest rates and impact the broader financial framework.

Foreign investors sustained a record nine-day selloff of Shanghai and Shenzhen equities, leading to a 46.2 billion yuan ($208 million) downturn, the most pronounced since 2016. Driven by faltering economic data and property-sector instability, this trend not only dampens the outlook for China's market but also has global implications.

Berkshire Hathaway, led by Warren Buffett, sold a net $8 billion in stocks between April and June, amassing a cash reserve of $147 billion and signaling increasing economic pessimism. Following a hefty $13.3 billion stock offload earlier this year, prominent experts like Steve H. Hanke and Robert Kiyosaki have voiced concerns. Hanke underscored a money supply contraction rate not seen since 1938.

US inflation-adjusted bond yields have soared to alarming levels not seen since the 2008 financial crisis, with real yields spiking to 185bps — the most since the Lehman Brothers debacle. This sharp ascent signifies increasingly burdensome borrowing conditions in the US. Rising real yields not only boost the allure of bonds but also cast a shadow over the stock market's prospects. As the Fed intensifies its interest rate hikes to combat persistently high inflation, ominous signs like an inverted yield curve hint at deeper economic turbulence ahead. Market experts warn of a potential downturn and lasting repercussions.

US households' excess savings from the pandemic era are anticipated to run out this quarter, warns the Federal Reserve Bank of San Francisco, potentially diminishing a major propellant of the US economy amidst rising inflation. Earlier research estimated $500 billion in excess savings as of March 2023. However, updated figures show less than $190 billion by June. This decline, combined with growing spending, lowered income data, and inflationary pressures, hints at economic headwinds, especially as the Fed continues its aggressive interest rate hikes.

First-time jobless claims in the US saw a slight decrease to 239k, but continuing claims rose above 1.7mm for the first time since early July, indicating potential instability in the labor market. Previous claims may have been inflated due to fraudulent filings in Ohio and expanded eligibility in Minnesota. Despite minor improvements, the labor market's strength seems disconnected from The Fed's policy actions.

Dishonest money is destroying our standard of living.
What do I mean by "dishonest" money?
I mean government fiat money that it can create out of thin air. This is inflation and it constantly eats away our purchasing power.

Good news! The recession is off!
For months, economists predicted the Federal Reserve's rate hikes to fight price inflation would spin the US economy into a recession. But there is a growing consensus that the central bank can slay price inflation while guiding the economy to a "soft landing."
Economists Bob Murphy and Jonathan Newman say, "Not so fast!"

If you want to know the "Science" behind what it would take for much higher Gold & Silver prices, this is a MUST-WATCH VIDEO.  While we in the precious metals community are guilty of putting out extremely high price forecasts, this is based on a more scientific approach...

In Anglesey, Wales, metal detectorists have unearthed a first-of-its-kind treasure: 15 gold coins from the Iron Age. Named "staters", these coins were minted between 60 B.C. and 20 B.C. Their designs, deeply influenced by Macedonian gold coins of Philip II, king of ancient Macedonia, showcase the Greek god Apollo's bust on one side and a detailed two-horse chariot and rider on the other. Presumed to be used by the Corieltavi tribe, this discovery is now celebrated as a "treasure". Given such coins are rarely found in Wales, experts speculate they may have been religious offerings. This remarkable collection will soon grace the Oriel Môn museum in Anglesey.

As August 2023 unfolds, US Industrial Production for July has merely reached 2007 levels, despite extensive spending from Washington DC and significant stimulus from the Federal Reserve. Is this the best result we could anticipate? In year-over-year terms, US Industrial Production is on a decline, registering a decrease of -0.23%, even if it shows a slight month-on-month uptick.

FOMC Minutes Signal Hawkish Fed Fears "Significant Upside Risks To Inflation." Market expectations for The Fed have oscillated since the last FOMC meeting. Amid a shifting backdrop, traders are keenly watching for the Fed's growth and inflation stance. Despite the Atlanta Fed's optimistic +5.8% GDP growth forecast for Q3, the central bank's discussions suggest further rate hikes could be on the horizon. The labor market remains tight, and while some banks grapple with rising rates, the majority of the Fed's members seem inclined to adjust rates upwards to counteract inflation.

Gold rose on Wednesday due to a weaker dollar and dropping bond yields, regaining its position after a decline below $1,900. A strong British core inflation data for July pushed the pound up, offering gold short-term support against a softer dollar. As 10-year Treasury yields fell, the metal's appeal grew, especially with potential interest rate hikes to combat inflation. "The main factor slowing gold's decline is the lack of confidence in the health of the global economy with the latest data out of China adding to that negative sentiment," analyst Rupert Rowling said in a note.