Precious metals news

Gold prices dropped by 0.3% to $2,344.20 per ounce on Tuesday as investors took profits after a recent rally, influenced by a reduced likelihood of Federal Reserve rate cuts. Despite the decline, gold remained on track for a fourth consecutive month of growth. The market is now awaiting key U.S. inflation data. The drop follows Fed meeting minutes suggesting the current interest rate will be maintained, with discussions of potential future hikes.

Archaeologist Tehiya Gangate discovered a 2,300-year-old gold ring in Jerusalem while working at the Givati National Archaeology Park. The well-preserved ring, set with a red stone, likely belonged to a child from the Hellenistic period. The Israel Antiquities Authority and Tel Aviv University noted that the ring, dating to around 300 BC, reflects the increased popularity of stone-set jewelry following Alexander the Great's conquests. Gangate described the find as an emotionally significant and rare discovery.

As the US devalues and burns through cash at a record-setting pace, gold continues to gain. Gold has risen 89% in the past five years, compared to a disappointing 0.7% for the US aggregate bond index (as of May 17, 2024, according to Bloomberg). Our guest commentator explains why the government is eroding our purchasing power, and what will happen next.

The Comex report for last month correctly identified a potential big move in silver while the same report two months ago preceded a massive up move for the price of gold. The data this month is not as obvious or compelling, but it is clear the stress on the Comex continues to build.

The cost of higher education has skyrocketed. And we have the government to blame.

In the fight against inflation, is it the Fed or the Treasury that calls the shots? The answer is, it’s both. The Fed raises interest rates to make loans less attractive and bring inflation down, but The Treasury has its own set of magic tricks to artificially “stimulate” or “tighten” the economy as well. One of them is a Treasury buyback program, something that was just reincarnated for the first time in about two decades. This is where the Treasury repurchases its own outstanding securities from the open market to increase liquidity, stoke, demand, and bring down yields. 

As U.S. Utility companies continue to transition to Green Energy, they are setting up for massive failure in the future.  In this second update, I show how Portland General Electric in Portland, Oregon, is typical of utility companies' unsustainable economics...

Silver broke $30 per ounce and gold $2,500 this past week. Joel and JD unpack the recent breakout and Peter Schiff's analysis, and what to look out for in the leg up.

Artificial Intelligence has already had an incredibly disruptive effect on many industries. It has allowed inexperienced workers the ability to increase their productivity and outpace older workers with less tech-savvy. It has begun to help some companies make efficient decisions that they would have been blinded to if they had only considered their own industry conventions. AI is different from many other tools because it can shift the direction of industry rather than merely being a tool used towards a predetermined end. Because of its ability to make decisions objectively and create unpredictable objectives, AI will throw a great deal of uncertainty into the prices of money, stocks, and bonds. 

Ronald Stoeferle, founder of the comprehensive gold market study "In Gold We Trust," reaffirms his long-term gold price target of $4,821 per ounce by the end of 2030. This forecast, introduced in 2020, anticipates an annualized return of just under 12%. Stoeferle's model, based on the gold coverage ratio, previously achieved higher returns in past decades.

A recent Harris poll for The Guardian reveals that a majority of Americans believe the economy is in a recession, although it is not. The poll also shows misconceptions, with nearly half thinking the S&P 500 is down this year and unemployment is at a 50-year high. In reality, the economy is growing, the S&P 500 is up by about 11% in 2024, and unemployment is near historic lows, highlighting a significant disconnect between perception and reality.

House Republicans are set to pass a bill preventing the Federal Reserve from implementing a central bank digital currency (CBDC) without congressional approval. Sponsored by House Majority Whip Tom Emmer, the CBDC Anti-Surveillance State Act aims to address privacy concerns. While likely to pass in the Republican-majority House with some bipartisan support, the bill faces challenges in the Democratic-controlled Senate and requires President Biden's approval to become law.

Walmart and Target are reducing prices on thousands of items, offering some relief to consumers despite ongoing inflation. Walmart reported a 3.8% increase in first-quarter sales and announced price cuts on nearly 7,000 items, highlighting deflationary trends in general merchandise. Target also slashed prices on over 1,500 items, responding to the strain higher prices have placed on its middle-class customers, although it reported its fourth consecutive quarter of sales declines.

U.S. Treasury yields remained mostly unchanged on Friday as investors evaluated recent economic data. The 10-year yield rose to 4.478% and the 2-year yield increased to 4.9375%. Despite the University of Michigan's consumer sentiment index for May beating estimates, it dropped to its lowest level since November 2023. April's durable goods orders exceeded expectations, and services and manufacturing sectors showed expansion according to the latest purchasing managers' index.

Cleveland Fed President Loretta Mester, nearing mandatory retirement, emphasized the importance of acknowledging uncertainties in economic forecasting and policy. Reflecting on nearly 40 years at the Federal Reserve, Mester noted that while transparency has increased, the Fed cannot predict future economic conditions with precision. She stressed that central bankers should adapt their policies as the economy evolves, especially in the unpredictable post-pandemic landscape.

Oil prices remained steady on Friday as rising U.S. gasoline demand balanced concerns over interest rate uncertainties following the Federal Reserve's recent comments. Brent crude futures were slightly up at $81.37 a barrel, while U.S. West Texas Intermediate crude futures edged down to $76.85. Both benchmarks had hit multi-month lows on Thursday. Investors are evaluating the Fed's stance on potential future rate hikes amid persistent inflation.

Legendary oil trader Pierre Andurand predicts that copper prices will quadruple to $40,000 per ton over the next four years due to surging demand driven by the global energy transition. Andurand believes this demand will outstrip supply until the latter half of the 2020s. The renowned hedge fund manager, famous for his successful commodity market bets, made this prediction in an interview with the Financial Times.

Gold prices rose on Friday but are set for their first weekly decline in three weeks as expectations for U.S. interest rate cuts have diminished due to the Federal Reserve's recent hawkish stance. Spot gold increased by 0.4% to $2,338.57 per ounce, while U.S. gold futures went up 0.1% to $2,339.80. The dollar index also dropped, making gold cheaper for foreign buyers.

In this episode, Peter recounts silver’s notable rise above $30/oz and addresses the latest FOMC minutes that were released this week, in which the Fed signaled that rate cuts could be delayed even further. Peter also calls out the SchiffGold Silver Breakout Sale to celebrate the metal’s long-awaited breakout. 

Join Alan Hibbard in this thought-provoking video as he dives into the possibility of the US Treasury revaluing gold to $20,000 per ounce.