Precious metals news

Following the announcement of the general election on July 4th by Prime Minister Rishi Sunak, The Royal Mint has reported a significant increase in gold sales. Investors, seeking a safe haven during political uncertainty, have caused gold purchases to rise by 117% and spending on bullion to jump by 145%. Notably, 10% of recent buyers are new to investing in precious metals.

Are we on the brink of a nuclear conflict? In this critical video, Mike Maloney dives deep into the escalating tensions between Russia and NATO

In light of the recent pullback and low premiums, now is a unique opportunity to buy silver with prices 40% below their historic highs of $50 per oz. JD and Joel also discuss the cause of the price pullback this week, the shocking Berkshire's stock price fumble, and the 8-figure-fortunes of a GameStop day-trader.

The analysis below covers the Employment picture released on the first Friday of every month. While most of the attention goes to the headline number, it can be helpful to look at the details, revisions, and other reports to get a better gauge of what is really going on.

Public schools are losing students to charter education, and government officials are doing whatever they can to bail them out.
On March 6th, Colorado House Bill 1363 was proposed. The legislation included several anti-charter school reforms, including decreasing funding and allowing public schools with declining enrollment to prohibit new charter schools within the district. However, with the proposal being denied, public schools remain helpless to the rampant success of charter education.

Food has gotten big. Literally. A walk through the produce aisle of a 21st-century grocery store would enthrall people of any historical period other than our own. The size of tomatoes and heads of lettuce is unprecedented in the history of humankind. In just a few short generations we have become accustomed to increasingly genetically modified food. This new food is much more tasteless and durable than food of the past.

Saudi Arabia has joined Project mBridge, a central bank digital currency (CBDC) cross-border trial led by China and supported by the Bank for International Settlements (BIS). This project, which includes central banks from China, Hong Kong, Thailand, and the UAE, aims to facilitate cross-border transactions and reduce reliance on the U.S. dollar in global oil trade. The BIS announced that Project mBridge has achieved the "minimum viable product" stage, advancing beyond the prototype phase. The initiative highlights the growing global interest in CBDCs, with 135 countries exploring their potential despite technical and political challenges.

It's time for the Federal Reserve to cut interest rates, having effectively cooled inflation through aggressive hikes. Persistently high rates are based on a flawed understanding of homeownership costs, which risks unnecessary economic harm. Inflation, measured by the personal consumption expenditures (PCE) deflator, peaked over 7% two years ago and has since fallen below 3%, though still above the Fed's 2% target. However, the PCE and consumer price index measures of inflation are flawed due to their problematic reliance on estimated rental costs for homeowners.

Global PMI data for May indicates a slight increase in the average prices charged for goods and services, driven by persistent price hikes in services and accelerating manufacturing costs. While Europe shows signs of cooling inflation, the U.S. data aligns with the Fed's target inflation levels. The PMI Prices Charged Index rose marginally to 53.3, reflecting sustained inflation rates above pre-pandemic levels.

The European Central Bank (ECB) cut interest rates for the first time since 2019, reducing the key rate from 4% to 3.75% amid persistent inflation in the eurozone. This decision, influenced by updated inflation forecasts and the strength of monetary policy transmission, follows nine months of steady rates. The ECB also raised its inflation outlook for 2024 to 2.5% and for 2025 to 2.2%. Markets had anticipated this 25 basis point cut and predict one more reduction this year, though some economists expect two additional cuts.

Societe Generale warns that the U.S. economy is nearing a recession, citing three key signs observed in the past week: reduced economic growth expectations, slowed manufacturing activity, and declining inflation measures. Despite some optimism for a soft landing, the bank's chief global strategist, Albert Edwards, highlights these red flags as indicators of an impending downturn.

Gold prices surged in Asian trade on Thursday, driven by weak economic data that bolstered expectations of Federal Reserve rate cuts, which weakened the dollar. Traders are optimistic about global monetary easing, with rate cuts expected from the Bank of Canada and the European Central Bank. Spot gold rose 0.6% to $2,370.40 an ounce, while gold futures fell 0.6% to $2,389.70 an ounce. Meanwhile, copper prices rebounded from a one-month low, supported by a softer dollar, with benchmark copper futures rising 1.5% to $10,074.50 a tonne.

Silver, often overshadowed by gold, has recently gained significant investor interest by breaking a key resistance level of $30 per ounce for the first time in over a decade. Despite a slight selloff, silver's performance is reminiscent of past bull runs, outpacing gold in percentage gains with a 44.6% surge from its February low compared to gold's 21.7% increase.

Bond industry leaders warn that the rising U.S. debt load poses significant risks to the Treasury market, with sustained high long-term Treasury yields and an unlikely prospect of spending cuts or tax increases, regardless of the upcoming presidential election results. The U.S. debt has grown to $27 trillion, with projections reaching $48 trillion by 2034, raising concerns about the country's fiscal direction over the next decade.

Gold prices have surged, making the metal a key focus at last week’s Alternatives Symposium. State Street, a leader in gold ETFs, offers the SPDR Gold Shares (GLD) and the SPDR Gold MiniShares Trust (GLDM), both up about 14% this year, with GLDM attracting significant inflows. I interviewed George Milling-Stanley, State Street’s chief gold strategist, to gain insights from this prominent gold analyst.

In 2024, gold prices have surged to record highs, defying traditional market correlations with the U.S. dollar and equity markets. This surge has driven increased physical gold transactions, with strong demand from central banks and continuous buying from China. In the U.S., investors are purchasing gold from various sources, including popular retail chains like Costco. Terry Hanlon, president of Dillon Gage, notes busy activity from both buyers and sellers, driven by geopolitical concerns and inflation. The World Gold Council reports a 3% year-over-year increase in gold demand in the first quarter of 2024, marking the strongest first quarter since 2016.

Those counting on U.S. Shale Gas to peak will have to wait a while as natural gas production hit a record high.  Interestingly, the majority of the increase in U.S. Shale Gas production came from the shale oil fields, not the shale gas fields...

On one hand, the Band of Japan says that it wants long-term interest rates to be dictated by market forces. But on the other hand, the BoJ has been spending 6 trillion yen per month buying bonds to prop up its currency. In other words, it’s doing everything in the world to control short-term interest rates with bond-buying programs and yen interventions, free markets be damned. 

A software glitch during a Monday update caused the New York Stock Exchange (NYSE) to mistakenly halt trading on around 40 stocks and display abnormal trades showing a 99% drop, including in Berkshire Hathaway Inc. The issue, the third market disruption in a week, was resolved after 45 minutes by switching to a backup data center. NYSE will cancel incorrect trades and review the halts for further actions. The error occurred as the Consolidated Tape Association implemented a software update affecting the Securities Information Processor feed.

China is experiencing a surge in fake gold scams, defrauding consumers as gold prices rise and many citizens turn to bullion for financial security amid economic uncertainty. These scams involve selling inferior gold marketed as "999 gold" online. The increased demand for gold, driven by both consumer purchases and the central bank's acquisitions, has expanded the bullion and jewelry market, creating opportunities for fraudsters. Despite numerous complaints, major online platforms have yet to address the issue publicly. The government has issued guidelines to help consumers verify gold authenticity.