Precious metals news

A recent Deutsche Bank survey reveals a significant shift in investor sentiment regarding the U.S. economy's future. While last year, a majority of investment banks and Wall Street investors were bracing for a recession, driven by persistent inflation and rising interest rates, the current outlook has dramatically changed. Now, nearly half of all investors believe in a 'no landing' scenario, where inflation persists without leading to a recession.

Vivek Ramaswamy, a notable figure in the 2024 presidential primaries, has garnered attention for his critical stance on the Federal Reserve, a topic largely ignored by other candidates. He advocates for a monetary policy centered on maintaining a stable dollar price level. This unique focus on the Fed's role in economic stability distinguishes Ramaswamy's approach from his political peers.

The World Bank shares their Gold Investing Handbook for Asset Managers. Spanning over 70 pages, this handbook compiles cutting-edge research on gold investments from some of the world's leading experts.

Researchers from the Federal Reserve Bank of Philadelphia, Jesús Fernandez-Villaverde and Daniel Sanches, have found that adopting a gold standard could lead to long-term price stability. Their study, published in February, simulates how a gold standard might function in a small open economy. According to their findings, prices would naturally align with their long-term equilibrium, making inflation and deflation temporary issues. This suggests that a gold-based monetary system could offer a more stable pricing environment.

In this thought-provoking video, precious metals expert Mike Maloney dives deep into the current economic landscape.

Gold's recent rally to over $2,200 an ounce, marking a significant 10% increase since mid-February, underscores a turning point for the precious metal. This surge, surprising to many, affirms the strength of several factors working in favor of gold. The Federal Reserve, under Jerome Powell's guidance, has hinted at a softer monetary approach, potentially cutting rates up to three times in 2024. This shift away from the stringent monetary policies of the past year and a half signals a brighter outlook for gold. As real yields decrease, the appeal of gold, which doesn't bear interest, naturally grows, positioning it as an increasingly attractive investment amidst the anticipated rate cuts.

Joe Cavatoni, a market strategist at the World Gold Council, recently appeared on 'Closing Bell: Overtime' to share insights into gold's burgeoning market performance as it approaches record-high values. Cavatoni emphasized that the current economic climate, marked by rate cuts, is highly favorable for investing in gold. His analysis points to the precious metal's appeal as a safe-haven asset, particularly in times of financial uncertainty and adjustments in monetary policy.

Silver presents an attractive investment option, thanks to its dual role as both a precious metal, akin to gold, and a critical component in various industrial applications, ranging from solar panels and computing to healthcare. Its value is uniquely positioned to benefit from economic growth, making it particularly responsive to the state of the economy. Currently, silver is considered undervalued when compared to gold, as highlighted by the gold/silver ratio. According to Charlie Morris from ByteTree, the ratio now stands at about 88 ounces of silver for one ounce of gold, against a 30-year average of 67 ounces, indicating silver's potential for growth.

Gold prices experienced a notable increase overnight, nearing $2,200 per ounce, influenced by the market's anticipation of potential interest rate cuts by the U.S. Federal Reserve within the year. This surge in gold values comes as traders keenly await upcoming inflation data, which is expected to play a crucial role in determining the timing of these anticipated rate adjustments.

Federal Reserve Chair Jerome Powell is prepared to lower interest rates to support the job market, despite potential risks of sustained high inflation. This shift, aimed at preventing job losses, marks a notable pivot from the Fed's previous strategy of raising rates to curb inflation. Powell emphasized this potential policy change in light of recent unemployment trends, highlighting the Fed's focus on employment stability over short-term inflation concerns.

In 2024, CEOs see the U.S. national debt as the top geopolitical threat amid global economic turmoil, including rising costs, labor challenges, trade tensions, and geopolitical instability. The Conference Board's survey of 1,247 C-suite executives highlights concerns over debt and deficits, amidst broader issues like AI technology, human capital management, and sustainability. This perspective underscores the need for future-ready leadership amidst global challenges.

Experts say the housing market likely won't see more affordable mortgage interest rates for a while.

The Federal Reserve is anticipated to lower interest rates, which may positively impact President Joe Biden's reelection campaign by potentially easing public concerns over high inflation and increasing housing costs. This move, however, is expected to attract criticism, especially from Republican circles, including Donald Trump, who argue that the Fed's actions could unfairly influence the election outcome. Trump has preemptively suggested that Fed Chair Jerome Powell, appointed by him in 2018, might lower rates to benefit the Democrats.

Iran's currency dropped to an all-time low of 613,500 to the dollar amid the Persian New Year celebrations. The scarcity of open exchange shops during the Nowruz holiday, which spans from March 20 to April 2, exacerbated the situation. High demand for foreign currency, particularly dollars and Euros, due to holiday travel, coupled with limited access to exchange services, significantly influenced the currency's valuation. This event reflects broader economic pressures and the impact of seasonal factors on Iran's financial stability.

In 2024, gold is expected to shine brightly, driven by three pivotal factors: anticipated interest rate cuts by the US Federal Reserve, a weakening US dollar, and ongoing geopolitical tensions. These elements are forecasted to sustain high gold prices, with expert predictions suggesting that the metal will not only remain above $1,950 per ounce but could also surpass the $2,500 mark. This optimistic outlook is supported by several research agencies, which have adjusted their price forecasts upward, indicating a robust period ahead for gold investors.

Recently, gold has responded strongly to real yields, buoyed by significant central bank purchases. With real yields peaking, ongoing geopolitical tensions, sustained demand from central banks, and robust retail jewelry demand, JP Morgan holds a positive outlook on gold. They argue for its inclusion in diversified portfolios for its potential to protect against short-term risks, serve as a long-term store of value, and diversify portfolio risk.

Over the last three years, physical gold has significantly outshined gold-mining company shares, marking one of the most substantial performance gaps in recent decades. Gold's value soared to a new record, surpassing $2,200 per ounce, whereas the PHLX Gold/Silver Index, representative of gold-mining companies, has not seen growth in the same period. This trend suggests that after a phase where gold shares lag behind physical gold, gold-mining shares usually bounce back, outperforming rather than gold bullion's performance declining. Therefore, the historical pattern indicates potential for gold-mining shares to offer lucrative returns in the wake of their underperformance compared to physical gold.

Last week, Peter was interviewed on Speak Up with Anthony Scaramucci. In their conversation, they covered a wide range of important topics, including inflation, the fate of the dollar, and the trade-offs between gold and cryptocurrency. 

Goldman Sachs forecasts a positive returns for commodities in 2024, anticipating a 15% return driven by global central banks lowering interest rates. This monetary policy shift aims to bolster both industrial and consumer demand. The firm highlights potential in copper, aluminum, gold, and oil, emphasizing selective investment due to non-uniform gains across all commodities. The optimism stems from a notable first-quarter performance, with commodities like crude oil strengthening, gold reaching new highs, and copper prices surging.

Not ONE, but TWO European Silver ETFs saw significant increases in silver inventories and investment over the past two weeks.  Who are the entities buying silver in Europe?  Also, it's time to put some light on the lousy analysis by members of our community on the Bitcoin Mining Industry...