Precious metals news

Copper prices fell again on Wednesday, influenced by a combination of a strengthening dollar and ongoing challenges within China's real estate market, which is a significant consumer of industrial metals. The price of three-month copper on the London Metal Exchange decreased by 0.4% to $8,439 per metric ton by mid-morning, reversing a brief recovery from consecutive losses earlier in the week.

A rare 3,000-year-old gold pendant, believed to be the earliest gold artifact found in Jerusalem, was recently showcased to the public. Unearthed a decade ago during excavations at the Ophel, near Temple Mount, this tiny piece of jewelry from the First Temple period had been largely overlooked until last year. Described by Brent Nagtegaal from the Armstrong Institute of Biblical Archaeology, the artifact is meticulously crafted, resembling a basket with a solid base and distinctive semi-circular "handles" that suggest it may have been used as a pendant or earring. This discovery adds a valuable piece to the historical puzzle of ancient Jerusalem, highlighting the city's rich past and the intricate craftsmanship of its people.

In a compelling guest piece by American historian H.A. Scott Trask, various economic myths are scrutinized and debunked through insightful historical analysis. The article delves into #10 prevalent misconceptions, providing a nuanced understanding of economic principles. Similar to other reality-based historians, Trask's perspective serves as a valuable guide in dispelling lies and fostering a more accurate comprehension of economic truths.

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.

Harmony Gold Mining Co. plans to invest 7.9 billion rand ($410 million) to significantly extend the life of the Mponeng mine, the world’s deepest mine, from seven to 20 years. This decision contrasts with the broader trend of decline in South Africa's gold industry, which has seen production drop to less than a fifth of its peak due to increasing costs and geological challenges. This investment marks a positive development for South Africa’s dwindling gold sector, as many companies have shifted their focus to more favorable mining environments in other regions. Despite this, Mponeng remains a key asset for Harmony, contributing significantly to its output and even generating additional payments to AngloGold due to surpassing production expectations in 2023.

I had no idea how bad the fundamentals were in the Bitcoin Mining Industry until I decided to take a HARD LOOK.  It's no coincidence the Bitcoin price surged higher recently.  If it didn't, the Bitcoin Mining Industry would have been in serious trouble... and still is...

Argentina's Javier Milei has achieved a remarkable fiscal turnaround, transforming the nation's longstanding budgetary woes into its first monthly surplus in over a decade. Within a mere nine and a half weeks, Milei managed to overturn a deficit that had been forecasted to reach 5% of the country's GDP, effectively shifting from what would be equivalent to a 1.2 trillion-dollar annual deficit in the United States to a 400 billion-dollar surplus. This rapid financial correction not only showcases Milei's decisive approach to economic management but also marks a significant milestone in Argentina's efforts to stabilize its economy.

It’s no surprise to readers of this site that metals are often worth more than fiat currency. Gold, silver, and other precious metals are known for their value. But sometimes fiat currency can’t even compete with zinc.

Gold is experiencing a notable resurgence in popularity, particularly among the Gen Z demographic, as it regains its status as a coveted asset. This revival in interest comes despite the previous shift towards diamonds and other gemstones among Chinese consumers. The Spring Festival holiday saw strong gold consumption, with prices remaining high, yet not deterring buyers. The China Gold Association reported that gold jewelry and Year of the Dragon gold bars were especially sought after during the Chinese New Year celebrations. This trend is part of a broader recovery in the domestic consumer market, fueled by policies designed to boost consumption. Last year, gold and silver jewelry sales saw the fastest growth among retail sectors, indicating a renewed appreciation for precious metals in the world's largest precious metals market.

Oil prices have seen an uptick, supported by signs of robustness in the physical crude markets, contributing to the rally observed throughout the month. West Texas Intermediate (WTI) climbed above $78, nearing its peak for 2024, driven by strong refining margins and increased interest from foreign buyers looking to bypass Red Sea shipping complications.

At the recent G-20 meeting in Brazil, finance chiefs have expressed optimism about the global economy's prospects, highlighting an increasing chance of achieving a soft landing despite recent challenges. According to a draft of the G-20's closing statement, this positive shift is attributed to a faster-than-expected disinflation, suggesting a more balanced outlook for the global economy. However, the statement, still under negotiation, acknowledges ongoing challenges such as conflicts in various regions, including Ukraine and Gaza, and geoeconomic tensions, without specifying them. This draft communique, dated February 23 and seen by Bloomberg News, captures a cautiously optimistic stance amidst the backdrop of the pandemic, inflation surges, and rising interest rates, reflecting a significant turnaround from the economic struggles of recent years.

In February, consumer confidence in the U.S. experienced its first decline since November, marking a notable shift in public sentiment regarding the economy. The Conference Board reported a decrease in the Consumer Confidence Index to 106.7, down from January's revised figure of 110.9. This decline came as a surprise to many, particularly following January's preliminary high of 114, which was the highest in two years. Expectations had been set even higher, with economists anticipating a February reading of 115. Additionally, the Expectations Index, which forecasts consumers' short-term outlook on income, business, and labor market conditions, also dipped to 79.8 from January's 81.5. The Conference Board's chief economist, Dana Peterson, noted an index value below 80 often precedes a recession within the next year, adding to concerns about the U.S. economy's trajectory amid ongoing uncertainty.

Gold prices are currently experiencing a slight decline, sitting at $2,041.7 per troy ounce, with a modest outlook for imminent price increases according to Macquarie analysts. Despite gold's strong recent performance, driven largely by significant physical demand from China, the prospect for near-term price growth remains limited. This is attributed to the inverse relationship between gold prices and physical demand changes. Initially, expectations were set high for a March rate cut by the Federal Reserve, but with the Fed Funds futures now anticipating three to four 25 basis points cuts from June, the outlook appears more balanced. However, Macquarie analysts anticipate a more favorable macrofinancial environment later in the year, which could propel gold prices to new heights, suggesting that while immediate gains may be constrained, the potential for a rise in gold prices later in the year remains.

The possibility of the U.S. Federal Reserve reducing interest rates in 2024 could be impacted by recent economic indicators, including robust job growth and less promising inflation data, potentially postponing rate cuts until summer. Despite inflation receding from its peak, there's a concern that it may have plateaued around 4%, rather than continuing its descent towards the Fed's target of 2% per annum. This development challenges earlier market expectations of an imminent rate cut, suggesting that the Fed may adopt a cautious approach to monetary policy adjustments until clearer trends emerge, underscoring the delicate balance between stimulating economic growth and controlling inflation.

BUNA, the UAE-based cross-border payment platform, is poised for a significant expansion by integrating currencies from Pakistan, India, China, as well as various African and European nations during 2024-2025. Announced by Fahad Al Turki, chairman of the Arab Regional Payments Clearing and Settlement Organization, at the World Governments Summit in Dubai, this initiative seeks to enhance BUNA's connectivity with national payment systems globally. This expansion is aimed at fostering financial collaboration across continents, with UAE Minister of State for Financial Affairs, Mohamed bin Hadi Al Hussaini, emphasizing BUNA's role in promoting investments and the usage of Arab currencies in financial transactions, while also upholding strict compliance against money laundering and terrorism financing.

According to Jim Bianco, a renowned Wall Street analyst, the Federal Reserve may not lower interest rates throughout 2024, deviating from earlier predictions of potential rate cuts. In a recent Bloomberg interview, Bianco shifted his stance closer to expecting no rate reductions, suggesting that the current high interest rates have not significantly harmed the economy. He challenges the notion that rates must fall to prevent economic damage, pointing out that, aside from minor issues like those in commercial real estate, the broader economy has remained resilient.

The average American is now shouldering a historically high level of credit card debt. As reported by the Federal Reserve, the total amount owed rose to $1.13 trillion in the final quarter of 2023. This staggering figure is mirrored by the fact that nearly 170 million consumers are currently carrying a balance on their credit cards, highlighting a widespread financial challenge, according to TransUnion. Understanding the magnitude of one's own debt is a crucial step towards devising a strategic plan to address and mitigate this financial burden, underscoring the importance of personal financial awareness and proactive management.

Jamie Dimon, the CEO of JPMorgan Chase & Co., has expressed a cautiously optimistic outlook regarding the commercial real estate sector, emphasizing that challenges within the industry could remain limited to specific areas, provided the U.S. steers clear of a recession. In a recent interview with CNBC, Dimon noted that despite the pressures from higher interest rates leading to lower property valuations, this situation does not constitute a crisis but is rather an anticipated adjustment. He suggested that many property owners are in a position to manage the current stress by refinancing and injecting more equity if necessary. However, Dimon also warned that an increase in rates coupled with a recession could exacerbate problems in the real estate market, with certain banks potentially facing significant difficulties.

Economists are forecasting a promising outlook for the U.S. economy in 2024, anticipating faster growth, reduced inflation, and robust job creation, defying the previous year's recession fears. The National Association for Business Economics projects a 2.2% increase in GDP, alongside a decrease in the Consumer Price Index to 2.4%, signaling a significant improvement from past years. This optimistic scenario suggests a balanced economic environment, with moderated inflation and sustained growth.

The housing affordability crisis in America has reached a dire point where nearly two-thirds of American families are unable to afford the construction costs of an average home. To determine what Americans can actually afford, Creditnews Research delved into the costs in the various stages of residential property construction and how they compare to Americans' purchasing power. The research highlights that less than half of American households can bear the expenses of constructing a standard single-family house. Furthermore, a staggering one in four households is financially incapable of securing a mortgage that extends beyond covering the basic structure of a home.