Precious metals news

A Prudential Financial study reveals that Generation X, currently aged 44-59, is facing significant financial challenges as they approach retirement. This generation, caught between the decline of pension plans and uncertainties about Social Security's future, is less financially secure than their predecessors. Compared to older generations, a larger proportion of Gen Xers expect to need financial and housing support from their families in retirement, potentially becoming "silver squatters." Despite these concerns, many have not yet discussed their potential need for support with their families, highlighting a critical need for financial planning and open communication about retirement expectations.

Traditional recession indicators in the U.S. are proving unreliable in the current economic climate, largely due to the unique disruptions caused by the pandemic. Despite signals such as declines in temporary employment and an inverted yield curve, which historically predicted recessions, no significant downturn has occurred. The pandemic has fundamentally altered labor market dynamics, with businesses less reliant on temporary workers. Additionally, although GDP contracted for two consecutive quarters in 2022, the broader economy has remained resilient. This has led to skepticism about the current relevance of these recession indicators.

Gold prices increased on Wednesday due to a weakening dollar and anticipation of upcoming U.S. economic data that could influence the Federal Reserve's interest rate decisions. Investors are closely watching GDP and personal consumption expenditure reports for clues on potential rate cuts, with markets currently expecting a rate cut in September. Additional factors supporting gold prices include lower U.S. stock prices, higher crude oil prices, and India's recent reduction of import duties on gold and silver. Gold's appeal is further bolstered by expectations of earlier Fed rate cuts and ongoing political developments in the U.S.

African nations are increasingly turning to gold as a means to protect their economies against currency losses and inflation, following the lead of countries like China and India. Countries such as South Sudan, Zimbabwe, Nigeria, Uganda, and Tanzania are either implementing or considering policies to increase their gold reserves. This trend is driven by geopolitical tensions, recent economic disruptions, and a desire to reduce dependency on the US dollar. While this strategy offers potential benefits in terms of diversification and stability, experts note that it's not a complete substitute for US dollar reserves but rather a complementary approach to managing economic risks.

The Peter G. Peterson Foundation asked seven think tanks to come up with plans to address the national debt. All participating think tanks agree on the need to rein in borrowing and propose a combination of revenue increases and spending cuts to reduce the debt-to-GDP ratio by at least one-third by 2054. The report identifies Social Security, healthcare costs, and the 2017 tax cuts as key areas for potential bipartisan reform, suggesting that political will, rather than lack of solutions, is the main obstacle to addressing the debt crisis.

The U.S. economy is experiencing a controlled slowdown, with reduced hiring, consumer spending, and manufacturing activity, alongside a stagnant housing market. Despite these challenges, the economy appears to be achieving a "soft landing," with inflation cooling without significant unemployment increases and continued, albeit slower, economic growth. This controlled deceleration is viewed positively, with economists now seeing a lower risk of recession compared to a year ago. The upcoming economic figures are expected to show the slowest consecutive quarters of growth since 2022, reflecting this managed economic cooling.

Gold prices have reached record highs in 2024, defying typical behavior during U.S. presidential election years. According to the World Gold Council, while elections historically have not directly impacted gold performance, the current political climate of increased polarization and elevated geopolitical risks may be encouraging investors to seek gold as a hedge against portfolio risk. This unique environment has contributed to gold's strong performance, with prices up 16% year-to-date and reaching an all-time intraday high of $2,488.40 on July 17.

Kristina Hooper, Invesco's chief global market strategist, believes multiple rate cuts could be possible in 2024. Despite disappointing existing home sales data, Hooper remains optimistic about potential rate cuts in 2024, suggesting the possibility of two or even three cuts. Hooper attributes the current tech sector rotation to anticipation of these rate cuts, which could prevent an economic downturn and lead to re-acceleration, benefiting cyclically sensitive stocks.

Despite higher prices due to inflation, global demand for Coca-Cola's beverages remained robust, with unit case volume up 2% and pricing up 9%. Coca-Cola reported strong second-quarter results, beating Wall Street estimates with a 3% revenue growth to $12.4 billion and a 7% increase in earnings per share to $0.84. CEO James Quincey attributes the success to strong strategy execution and notes that inflation is normalizing in most markets. As a result, Coca-Cola has raised its full-year guidance, expecting organic revenue growth of 9% to 10%.

In this eye-opening video, Mike Maloney breaks down complex economic concepts to reveal that the minimum wage has effectively fallen by over 70% ...

Goldman Sachs remains bullish on gold, driven by expectations of potential Federal Reserve rate cuts and strong, consistent demand from China. Despite rising U.S. interest rates, which typically lower gold prices, structural changes in the Chinese market and significant gold purchases by China's central bank are creating a robust outlook for gold. Goldman Sachs forecasts gold prices to reach $2,700 by 2025, supported by central bank buying and anticipated Western capital inflows due to potential rate cuts.

Gold has been outperforming the S&P 500 in recent months, defying its traditional role as a hedge against market downturns. This unusual behavior is attributed to bearish bets against a concentrated market, central bank actions, and increased interest from sovereign wealth funds and countries seeking alternative stores of value. Despite its atypical performance, gold remains an attractive investment option due to its diverse appeal beyond traditional hedging purposes, making it a useful tool in investment portfolios.

Global markets have stabilized following Joe Biden's withdrawal from the U.S. presidential race, with investors shifting their focus to corporate earnings and economic data. While Biden's exit has introduced uncertainty about a potential Republican victory under Donald Trump, markets are now in a holding pattern as they await further developments. Investors are particularly interested in upcoming earnings reports from major tech companies and how polling data might affect market volatility and equity performance.

Rising prices of feminine hygiene products, outpacing even food inflation, are forcing many American women to make difficult choices between purchasing menstrual supplies and other essential items. This price increase has led to a significant decline in sales of pads and tampons since 2020, with unit sales dropping by 12% and 16% respectively. Major manufacturers like Procter & Gamble have reported decreased sales volumes due to price hikes, highlighting the growing challenge for women to afford these necessary products and the lack of affordable alternatives in the market.

Russia's crude oil exports have declined for the third consecutive week, reaching a seven-month low. The four-week average exports have dropped by 620,000 barrels per day since April's peak, with Baltic port shipments decreasing by 41% since mid-June. This reduction is likely due to Russia's improved compliance with OPEC+ output targets and increased domestic refining activity. However, a recent Ukrainian drone attack on a refinery and scheduled maintenance at Ust-Luga port may further impact export volumes in the coming weeks.

The US economy is showing signs of stabilization despite a sluggish first half of the year. While certain sectors like manufacturing and housing are struggling, consumer spending remains resilient. The recent rise in unemployment is largely due to increased labor supply rather than job losses. Inflation is decelerating, which should support real disposable income and consumption. Although near-term recession risks remain low, challenges persist in consumer sentiment and building permits. Overall, the economy appears to be transitioning to a more sustainable growth rate, albeit with some bumps along the way.

Restaurants in Turkey's holiday towns are struggling this summer as soaring inflation, reaching 91% in some areas, drives both locals and tourists away. Social media posts highlight exorbitant prices in Turkish resorts, while a fast-track visa program has facilitated a significant increase in Turkish visitors to Greek islands. The devaluation of the Turkish lira has eroded purchasing power, leading to a decline in business for many eateries, despite some restaurants seeing a shift in clientele from higher-income segments.

CrowdStrike's recent outage, affecting 8.5 million Windows devices, has caused widespread disruptions across industries, particularly in air travel. The company warns of hackers exploiting the situation by distributing malware disguised as a fix. As CrowdStrike works to resolve the issue, its stock has plummeted, and the company faces scrutiny from lawmakers. The incident has severely impacted airlines, especially Delta, leading to thousands of flight cancellations and ongoing travel disruptions.

India has significantly reduced import duties on gold and silver from 15% to 6%, aiming to boost retail demand and combat smuggling in the world's second-largest bullion consumer. This move is expected to create a more level playing field for industry stakeholders and potentially increase global gold prices. However, it may also widen India's trade deficit and pressure the rupee. The decision led to an immediate drop in local gold prices, which could stimulate demand that had been suppressed by record-high prices earlier in the month.

What's going on at the world's largest primary silver mining company?  With Fresnillo PLC being one of the worst-performing silver miners, is its share price undervalued?  Or is something else going on?  In this update, I provide my detailed analysis...