Gold and Silver Industry & Investing News
Today’s gold and silver market news, curated from the best of GoldSilver's team and around the web. Everything precious metals investors need to know including updates on big price swings, macro analysis, and breaking stories. Check back often or subscribe to get the highlights in your inbox. Monitor live spot prices on our charts page.
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TOP NEWSThis Is the Greatest Manipulation of Gold In History
Discover shocking insights with Mike Maloney as he delves into what he claims is the greatest gold manipulation in history.
Thirty-Six Minutes of Chaos: Analyzing the Flash Crash
The "Flash Crash" wiped out nearly $1 trillion in market value in minutes, leading to significant regulatory reforms.
READ MORECentral Banks Turn to Gold as Hedge Against U.S. Dollar Dominance
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.
READ MOREZeroHedge: Rothschild Family Ventures Into Bitcoin
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.
READ MOREChina's Top Banks Launch $8.3 Billion Bond Sale to Boost Capital Reserves
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.
READ MORECopper Takes Center Stage in High-Stakes Global Commodities Battle
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.
READ MOREGold Prices Tick Higher in Anticipation of Influential U.S. Inflation Data
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.
READ MOREFed Officials Suggest Interest Rates May Stay High to Combat Persistent Inflation
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.
READ MOREStocks Rise; Key Economic Updates and Corporate Earnings on the Horizon
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.
READ MOREGlobal Platinum Market Faces Increased Deficit in 2024, Says WPIC
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.
READ MOREInvestingHaven Reveals Seven Charts that Shows Silver is Undervalued
InvestingHaven's analysis presents seven charts illustrating that silver is substantially undervalued when its price is compared across various assets like the Australian Dollar, copper, the Dow Jones, treasuries, the CRB index, and even Bitcoin. This method of assessing silver's value through relative readings against diverse assets reveals a consistent undervaluation, providing a broader perspective on its potential as an investment. This multifaceted approach enhances the understanding of silver's market positioning beyond traditional price evaluations.
READ MOREChina Launches Massive $140 Billion Bond Sale to Fuel Economic Growth
China has initiated the sale of approximately $140 billion (Rmb1tn) in long-dated bonds to stimulate its economy and fund critical long-term projects. The People’s Bank of China is currently consulting with brokers to determine pricing for this substantial bond issue, which was announced during the annual legislative session to boost economic momentum and address ongoing challenges in the property sector. These bonds, which are part of a series of special sovereign bond issuances dating back to 1998, aim to support significant investments in modernization projects that require central government intervention and offer a more secure investment option amid volatility in regional banking and property markets.
READ MORESurvey Shows U.S. Tech Stocks Perceived as New Inflation Hedge
According to a recent Bloomberg Markets Live Pulse survey, while gold remains the preferred hedge against inflation for 46% of respondents, nearly a third now view major U.S. tech stocks as a viable alternative, reflecting a significant shift towards betting on innovation to counteract rising prices. This suggests a growing confidence in the tech sector's ability to offer financial stability even during inflationary periods.
READ MORECurrency Markets Hold Steady as Traders Eye U.S. Inflation Data
Currency markets stabilized on Monday as traders anticipated upcoming U.S. inflation data, which could influence the Federal Reserve's decisions on potential rate cuts in 2024. Following recent weak U.S. labor market results and the Fed's decision against further rate hikes, expectations for easing have increased, with markets predicting about an 80% likelihood of a rate cut by September and a total reduction of around 40 basis points for next year, according to LSEG data.
READ MOREHigh Prices Dampen Gold Demand at India's Akshaya Tritiya Festival
Demand for gold during the Akshaya Tritiya festival in India, a major gold-buying event, was notably lower this year as soaring prices led to reduced retail interest. Despite dealers offering significant discounts, the high costs deterred many buyers, leading them to limit their purchases to small denomination coins. Jewelry sales were particularly weak, with one Mumbai jeweller reporting only about two-thirds of the sales compared to the previous year.
READ MOREGold Retreats from Recent Highs with Upcoming U.S. Inflation Reports in Focus
Gold prices fell on Monday as investors awaited upcoming U.S. inflation reports to gain insights on potential Federal Reserve rate cuts. Spot gold dropped by 0.7% to $2,344.53 per ounce, marking its largest decline in nearly two weeks, while U.S. gold futures also saw a decrease of about 1%. Analysts suggest that profit-taking in anticipation of the CPI data release is influencing the current dip in prices, with expectations that gold will remain relatively stable provided inflation slows down. Key economic indicators, such as the producer price index and consumer price index, are set to be released on Tuesday and Wednesday, respectively.
READ MORESilver Demand Soars as Solar Power Industry Expands Globally
The global surge in solar power adoption is significantly increasing the demand for silver, which is essential for making photovoltaic (PV) panels due to its superior electrical conductivity and thermal efficiency. With silver prices reaching their highest in a decade, mining companies are ramping up production to meet this demand. Last year, global investment in solar PV manufacturing skyrocketed to approximately $80 billion, representing 40% of the world’s clean technology manufacturing investments, according to the International Energy Agency. Notably, China has more than doubled its investment in solar PV manufacturing from 2022 to 2023. This investment has contributed to a 50% increase in global renewable capacity last year, with solar PV accounting for three-quarters of this growth, marking the fastest expansion in 30 years.
READ MOREForbes: What To Expect From April’s CPI Report
The April 2024 Consumer Price Index (CPI) report, scheduled for release on May 15 at 8:30 a.m. ET, is anticipated to reflect a continuation of this year’s relatively higher inflation trends, with headline inflation expected at 0.4% and core inflation at 0.3%. These figures, according to models from the Cleveland Federal Reserve and forecasts from Kalshi, suggest inflation will remain above the Federal Open Market Committee’s (FOMC) annual target of 2%. Given these conditions, and with another CPI release set for the day of the FOMC’s June meeting, it is unlikely the FOMC will consider interest rate cuts before July, potentially extending further depending on economic indicators such as job market conditions. This scenario supports the expectation that the Federal Reserve might delay any easing of monetary policy if inflation remains stubbornly high.
READ MOREHow a Second Trump Presidency Could Influence U.S. Inflation Rates
As the 2024 election approaches, economists are speculating on the potential impact of a Donald Trump victory on U.S. inflation. Predictions suggest that a second Trump term could lead to higher tariffs and increased deficits, among other policies, potentially driving inflation upwards. While economic forecasting is not precise, these predictions are based on previous policies and anticipated future actions that could shape economic conditions.
READ MOREBeyond the Numbers: The Varied Impact of Inflation
Inflation, while a key economic indicator, does not impact all demographics uniformly due to the aggregate nature of its measurement. Monthly inflation rates are calculated based on a general basket of goods which may not reflect the true spending habits of various groups, such as low-income or rural families. By examining disaggregated product groups and leveraging high-frequency online price data, researchers can uncover how inflation differentially affects diverse populations, revealing that the experience of inflation varies significantly among different groups.
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$20,000 Gold: Is A Treasury Revaluation Possible?
Could gold be the key to solving America’s debt crisis?
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