Precious metals news

An increasing number of Americans are struggling to keep up with credit card payments, with 8.9% of balances falling into delinquency over the past year, according to the Federal Reserve Bank of New York. Rising costs and high interest rates are putting pressure on consumers, especially those under 30 and in low-income neighborhoods. Nearly 20% of cardholders are "maxed out," using 90% or more of their credit limit, which significantly raises the risk of falling behind on bills.

Gold prices reached a three-week high on Wednesday, driven by a weaker dollar and lower yields after the U.S. consumer price index rose less than expected in April, increasing the likelihood of Federal Reserve interest rate cuts. Spot gold rose 0.4% to $2,367.29 per ounce, and U.S. gold futures rose 0.6% to $2,372.70, as investors anticipated that cooling inflation could lead to rate cuts by September.

The Consumer Price Index (CPI) report for April showed a 0.3% increase from March, indicating that inflation is easing slightly. However, consumer prices are still up 3.4% from a year ago, matching expectations. Core inflation, excluding food and energy, was 3.6%, the lowest since April 2021.

A short squeeze in New York's copper market has driven futures prices to record highs, causing a scramble to ship metal to the US. This surge has resulted in a significant premium for July Comex futures over later months and other global exchanges, prompting traders, particularly in China, to redirect copper shipments to meet delivery requirements.

Peter recently appeared on the Bald Guy Money show for a conversation on gold’s role in American and global politics, the influence of the BRICS coalition on metals markets, and, as always these days, the disastrous monetary policy coming out of the Fed. 

FINALLY... the silver price closed above $29 for the first time in a decade and is now trading at $30.  But what does the Bearish copper chart say about what's next for silver??  While silver closed near the highs today, the copper price fell nearly 4% from its intraday highs...

This week on the Peter Schiff Show, Peter covers a week of dismal economic reports. Both jobless claims and consumer sentiment came in worse than expected last week, with both figures missing predictions by a wide margin. Peter also discusses public statements made by both Joe Biden and Donald Trump on the nature and origin of inflation.

Federal Reserve Chair Jerome Powell stated that inflation is decreasing more slowly than anticipated, necessitating that interest rates remain steady for an extended period. Speaking in Amsterdam, Powell acknowledged the unexpected persistence of inflation and emphasized the need for patience with current restrictive policies, while ruling out further rate hikes.

Gold remains a vital financial asset, especially during times of crisis, and is held by many central banks for its stability and liquidity. This article uses the latest data from GoldHub to reveal which 30 countries have the largest gold reserves as of the first quarter of 2024.

Amid geopolitical tensions and a reevaluation of economic partnerships, central banks are significantly increasing their gold purchases, viewing the metal as a stable, politically neutral asset. This trend, highlighted by IMF Deputy Managing Director Gita Gopinath, reflects a shift away from heavy reliance on the U.S. dollar due to its increasing use as a geopolitical tool. The World Gold Council reports that central banks have bought over 1,000 tons of gold annually in 2022 and 2023, making up a quarter of the total gold demand, underscoring gold's role as a hedge in a fragmenting global economic order.

In a notable shift within the investment landscape, the Rothschild family, traditionally associated with the origins of central banking, has entered the cryptocurrency market by purchasing a small stake in Bitcoin. This move came to light in recent SEC filings, which also revealed several major U.S. banks and asset managers disclosing investments in Bitcoin ETFs. Noteworthy banks like JPMorgan and Wells Fargo reported holdings, but the Rothschild investment, though modest at $3.6 million, stands out due to the family's historical financial influence.

Two of China’s largest state-owned banks, Industrial & Commercial Bank of China Ltd. and Bank of China Ltd., are initiating the sale of 60 billion yuan ($8.3 billion) in total loss-absorbing capacity (TLAC) bonds this week. This move is part of a broader strategy to bolster capital reserves and enhance their ability to support economic growth, in line with global banking requirements set for 2025. This issuance is also aligned with Beijing’s objectives to facilitate credit supply and reduce funding costs for businesses, even as it pressures the banks' already tight profit margins.

The global demand for copper has intensified recently, evidenced by significant moves in the industry such as the Biden administration's efforts to prevent Chinese dominance in copper supply by discussing potential investments in Zambian copper mines with companies from various nations friendly to U.S. interests. This strategic maneuver aims to secure a stake in First Quantum Minerals valued at up to $3 billion. Additionally, the high-profile takeover attempt by BHP Group for Anglo American's copper assets, which was recently rejected, underscores the fierce competition for control over this essential metal, crucial for technologies ranging from electric vehicles to AI data centers. Anglo American's decision to focus more on copper by divesting from other commodities further highlights the metal's central role in future global developments.

Gold prices rose modestly on Tuesday, climbing 0.4% as investors awaited a key U.S. inflation report due later in the week. This report is anticipated to have significant implications for U.S. interest rate decisions, influencing the financial landscape and potentially easing the Federal Reserve's current rate cycle starting in September. Lower interest rates typically make gold, which does not yield interest, more attractive to investors. The outlook is partly based on consumer expectations, with predicted inflation rates expected to moderate over the next few years.

Discover shocking insights with Mike Maloney as he delves into what he claims is the greatest gold manipulation in history.

The silver price continued to rally after the release, showing an increase in the Producer Price Index this morning.  Silver initially sold off but then turned around and surged toward $29 before correcting and then closing near the day's highs.  So, what's next for the silver price..

On Friday, Don Ma interviewed Peter on NTD’s Business Matters. Their conversation focuses on declining consumer sentiment. With GDP and unemployment figures also signaling a recession, a worsening consumer outlook bodes poorly for the economy.

Several Federal Reserve officials have indicated that the aggressive interest rate hikes over the past two years might need more time to effectively reduce inflation, hinting at the possibility of maintaining or even increasing rates rather than cutting them this year. Despite sharp increases, higher borrowing costs have not significantly impacted American spending habits or cooled inflation as expected. This observation suggests that current interest rates may not sufficiently restrain economic activity or inflationary pressures, possibly requiring rates to remain elevated for an extended period. Fed Chair Jerome Powell also expressed the need for further observation to ensure inflation approaches the target, leaving the door open for continued high rates.

This week, the stock market saw gains, with the Nasdaq, S&P 500, and Dow Jones rising as Wall Street experienced a lull in economic data. The S&P 500 notably surpassed the 5,200 mark for the first time since early April. Looking ahead, key economic indicators such as the April inflation report, retail sales data, and initial jobless claims—which recently hit a nine-month high—will capture attention. Meanwhile, earnings reports from major corporations like Walmart, Home Depot, and Alibaba are set to punctuate a quieter earnings week.

The World Platinum Investment Council (WPIC) forecasts a deeper global platinum deficit in 2024 than initially expected, attributing the shortfall to diminishing mine supplies from South Africa and Russia. Although the anticipated deficit of 476,000 troy ounces is less than 2023's 851,000 ounces, due to a 5% decrease in demand, it remains significant. This marks the second consecutive year of platinum scarcity, influenced by ongoing production challenges, including restructuring and delayed production increases in South Africa, along with reduced Russian output due to smelter maintenance and the impact of Western sanctions.