Precious metals news

Japanese authorities, concerned about the yen's sharp decline to a 38-year low against the dollar, have signaled their readiness to intervene in the currency market. Finance Minister Shunichi Suzuki emphasized the need for stable exchange rates and expressed worries about the economic impact of rapid, one-sided moves. Chief Cabinet Secretary Yoshimasa Hayashi also indicated that Tokyo would take appropriate action against excessive currency fluctuations. The yen was trading at 160.52 per dollar on Thursday, close to its recent low of 160.88.

Gold prices increased by 0.7% to $2,314.22 per ounce on Thursday as the dollar weakened, with traders focusing on upcoming U.S. inflation data that could influence the Federal Reserve's interest rate decisions. The dollar index fell by 0.2%, making gold more appealing to investors holding other currencies. Analysts note that gold has consistently found support when dipping below $2,300 since April. However, if expectations for Federal Reserve rate cuts by the end of 2024 diminish, gold prices may struggle to stay above this key level. Currently, traders estimate a 62% chance of a rate cut in September.

“Retaliatory measures will definitely follow,” Kremlin officials promise the U.S. ambassador after a Ukrainian missile strike was allegedly conducted with U.S.-supplied weapons and intelligence.

Gold futures experienced consecutive losses on Wednesday, with the most-active contract reaching its lowest settlement since early May. The spot price briefly dipped below $2,300 an ounce, attributed more to technical factors than fundamental changes. Despite the downward movement in gold, silver prices increased slightly. Experts suggest that gold may be entering a typical summer trading range following its strong spring rally, with potential for a price breakout in the near future as volatility narrows.

A recent study by State Street Global Advisors and the World Gold Council reveals that financial advisors are maintaining or increasing their gold allocations. 29% of North American advisors plan to increase gold holdings over the next 12-18 months, while 62% will maintain current levels. Gold's price has risen significantly in 2024, and advisors are increasingly viewing it as a core asset for long-term investment. The survey shows that nearly 90% of advisors currently allocate to gold, with physically backed gold ETFs being the most popular investment vehicle.

Money Supply is a very important indicator. It helps show how tight or loose current monetary conditions are regardless of what the Fed is doing with interest rates. Even if the Fed is tight, if Money Supply is increasing, it has an inflationary effect.

The Federal Reserve's efforts to combat inflation by maintaining higher interest rates are exacerbating the national debt. Although inflation has decreased since the Fed raised rates to a two-decade high, officials remain concerned about the pace of price increases. Higher interest rates mean the federal government must borrow money at greater costs, contributing to rising deficits. Projections indicate that interest payments on the national debt could surpass defense spending in the coming decade. The Congressional Budget Office forecasts that public debt, currently over $27 trillion, will grow from 99% of GDP in fiscal 2024 to 122% in ten years. Experts note that while government spending is a primary driver of the debt increase, the Fed's high interest rates also play a significant role.

Paul Dietrich, chief investment strategist at B. Riley Wealth Management, warns that the S&P 500 could plummet by 48% when the current stock-market bubble bursts and a recession hits. He attributes this potential crash to an overvalued market, persistent inflation, high interest rates, and rising taxes. Dietrich compares the current hype around AI to the dot-com bubble and highlights the Buffett Indicator's surge to 188%, nearing a dangerous level. He also notes that gold prices have soared as institutional investors seek safe-haven assets in anticipation of a major market correction. Dietrich points to high price-to-earnings ratios and low dividend yields as further evidence of an impending downturn.

Sixteen Nobel Prize-winning economists have issued a warning about the potential economic consequences of a second Trump presidency. In a letter obtained by Axios, they argue that Trump's proposed policies, including new tariffs on imports and Chinese goods, could reignite inflation and harm the global economy. The economists collectively endorse Joe Biden's economic agenda as "vastly superior" to Trump's. This intervention aligns with the Biden campaign's strategy to shift focus from defending the current economic situation to highlighting the potential risks of Trump's economic plans. The economists' statement aims to lend academic credibility to the argument that inflation would worsen under Trump, addressing voter concerns about the economy and inflation.

Americans have been increasingly investing in cash-like assets, such as Treasury bills and money-market funds, due to high interest rates. However, as the Federal Reserve is expected to cut rates, investors face a dilemma: continue holding cash with diminishing returns or redistribute their funds into other investments. This decision is challenging and depends on individual circumstances, but experts warn that remaining in cash risks missing out on potential long-term gains from a diversified portfolio. J.P. Morgan Asset Management refers to this situation as the "cash trap," highlighting the need for investors to consider future market conditions rather than past performance when making investment decisions.

A new study by the Atlantic Council's GeoEconomics Center reveals that the U.S. dollar remains the world's dominant reserve currency, with neither the euro nor BRICS countries making significant progress in reducing global reliance on the dollar. The "Dollar Dominance Monitor" highlights the dollar's continued supremacy in foreign reserve holdings, trade invoicing, and currency transactions. Despite efforts by BRICS to shift towards other currencies, particularly accelerated by Western sanctions on Russia, the group has not advanced in its de-dollarization initiatives. The robust U.S. economy, tighter monetary policy, and geopolitical risks have further solidified the dollar's dominant role.

China's 10-year government bond yield has fallen to its lowest level since 2002, reaching 2.22%, as investors seek safe-haven assets amid concerns about the country's economic growth. This trend reflects ongoing economic challenges, expectations for further stimulus measures, and ample liquidity in the banking system due to weak loan demand. The bond rally persists despite increased government borrowing for fiscal stimulus. While this reflects a subdued risk sentiment and anticipation of monetary policy support, some analysts caution against chasing long-term yields lower, suggesting they may be disproportionately low compared to potential GDP growth.

Gold ownership among North American professional investors has significantly increased, with 85% reporting an allocation to gold investments, up from 69% in 2018. This trend is driven by gold's recent strong performance and record-high prices. Over half of the surveyed investors hold at least 1% of their assets under management (AUM) in gold, with 24% allocating 3% or more. Investors view gold as an excellent portfolio diversifier, inflation hedge, and risk reducer.

Los Angeles is facing a severe housing affordability crisis, with only 2.8% of non-homeowner households able to afford a typical mortgage. This crisis is driven by high mortgage rates, extreme lack of housing supply, and soaring home prices. The median home price in LA has surged to $1,050,000, more than double the national median. Factors contributing to this crisis include strict zoning laws, high construction costs, limited land availability, and wage growth that hasn't kept pace with housing costs or inflation. The situation is so dire that the household income needed to afford a median-priced house in California is $197,057, more than twice the average household income in the city.

Sunny Verghese, CEO of Olam Agri, warned that the world is on the brink of "food wars" due to geopolitical tensions and climate change, which are straining food supplies. Speaking at a recent conference, Verghese highlighted that government-imposed trade barriers, intended to protect domestic food stocks, have exacerbated food inflation. He noted that the proliferation of non-tariff trade barriers in response to the Ukraine war has created an exaggerated demand-supply imbalance, driving up prices. Wealthier nations stockpiling strategic commodities have further intensified this issue, leading to higher global food prices and deepening food insecurity, especially in poorer countries.

In this eye-opening and potentially polarizing video, Mike Maloney dives deep into the foundations of prosperity and the economic laws that drive it.

The Green Energy Industry took another BIG HIT when Enviva, the world's largest wood pellet company, filed for bankruptcy in March.  This is terrible news for power plants in Europe and Asia that have converted to burning wood pellets instead of coal...

An article in yesterday’s Washington Post assured readers that no matter who wins the 2024 US presidential election, we can count on massive expansion of the national debt to be among the common denominators. The article looked at a recent report from the Committee for a Responsible Federal Budget, or CRFB, analyzing the debt increases of both the Trump and Biden administrations.

A-Mark Precious Metals, Inc. has increased its ownership stake in Silver Gold Bull, a prominent online precious metals retailer in Canada, becoming the majority owner. This strategic move expands A-Mark's presence in the Canadian market and strengthens its position in the precious metals industry. The investment aligns with A-Mark's growth strategy and is expected to enhance its distribution capabilities while leveraging Silver Gold Bull's established customer base and market expertise.

Citigroup and Bank of America have issued bullish forecasts for gold prices, predicting they could reach $3,000 per ounce within the next year. This optimistic outlook is driven by expectations of increased investor inflows and anticipation of the Federal Reserve cutting interest rates. Citigroup analysts, led by Aakash Doshi, have revised their 2024 average price prediction to $2,350 and significantly increased their 2025 forecast to $2,875. They expect gold to frequently challenge and surpass the $2,500 mark in the second half of this year.