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 NEWSThe REAL Reason the South Lost the Civil War
As the Union and Confederate armies faced off during the Civil War, an equally fierce economic battle waged behind the scenes, ultimately deciding the war's fate.
The TRUTH About Costco Gold Bars
There’s a lot of hype about Costco’s gold bar sales lately...what is it all about? Why are Costco selling gold and silver bars in the first place
READ MOREDefying Conventional Thinking: Gold Gains Against Rising Rates and a Robust Dollar
Despite conventional expectations, gold prices have remained resilient in the face of rising interest rates and a strengthening U.S. dollar, traditionally negative factors for the metal. Typically, higher interest rates draw capital towards bonds due to their attractive yields, diminishing gold's appeal as an investment. Simultaneously, a strong dollar usually suppresses gold prices, as it increases the metal's cost in other currencies, encouraging selling. However, current market trends show that gold has diverged from these historical patterns, maintaining its value despite these adversarial conditions.
READ MOREFederal Reserve Reveals Over 1,800 Banks Accessed Emergency Funds Post-SVB Collapse
The Federal Reserve reported that 1,804 depository institutions, representing 20% of all eligible entities, accessed its emergency lending facility following the collapse of Silicon Valley Bank last March. According to the semi-annual Financial Stability Report, most of these institutions—95% in fact—were smaller entities with assets under $10 billion. The Bank Term Funding Program was established to counteract a liquidity crisis triggered by a sudden surge in withdrawals, which led to the failures of major banks like SVB and Signature Bank, necessitating a swift governmental intervention to stabilize the financial sector.
READ MOREGold Climbs for Fifth Week as Middle East Tensions Heighten Market Uncertainty
Gold prices are on pace for a fifth consecutive weekly increase, driven by heightened tensions between Iran and Israel, which spurred safe-haven buying. As of Friday afternoon, spot gold rose 0.7% to $2,395.15 per ounce, with earlier peaks reaching $2,417.59. Over the week, prices climbed by 2.2%. Meanwhile, U.S. gold futures also saw a similar uptick, closing 0.7% higher at $2,413.8 per ounce. This trend reflects investors' concerns over escalating geopolitical risks and their impact on financial markets.
READ MORECostco Offers Gold, But Reselling Proves Challenging
Buying a gold bar at Costco is as easy as adding it to your cart, but selling it involves more effort and can be less lucrative. Adam Xi, a 33-year-old from Philadelphia, experienced this firsthand. After purchasing a gold bar for $2,000, he struggled to resell it without a loss, contacting five different dealers before settling for a price just $20 below market value at $1,960. Many are discovering that gold is not as liquid an asset as they hoped, facing challenges when they decide to liquidate their investments.
READ MOREInside Job at Toronto Airport Leads to $16.5 Million Gold and Cash Heist
In a significant heist at Toronto's airport, a thief stole $14.5 million in gold bars and nearly $2 million in cash using fake documents to claim a shipment. The scheme, which unfolded last April, was later uncovered as an inside job possibly involving Air Canada employees. The discovery led to a yearlong investigation linking the culprits to an international arms-trafficking operation, which was eventually disrupted by Pennsylvania State Police.
READ MOREElderly Woman Cheated Out of $1 Million in Precious Metals by Scammers
A 70-year-old woman from Carlsbad was scammed out of more than $1 million in gold and other precious metals, according to the San Diego federal prosecutors. The scam started with a pop-up message on her computer claiming she had been hacked. Believing her bank account information was compromised, she was deceived by a group posing as tech support who convinced her to download malicious software. This group has been charged with conspiracy to commit wire fraud.
READ MORERay Dalio Recommends Gold as Shield Against Soaring Global Debt and Inflation
Billionaire investor Ray Dalio advocates for owning gold as a strategic hedge against potential debt and inflation crises. Dalio, the founder of Bridgewater Associates, highlights the escalating global debt, notably mentioning the U.S. debt reaching an unprecedented $34 trillion. He warns of a looming U.S. debt crisis that could lead to a balance sheet recession, adversely affecting major economies like China, Japan, and Europe, and threatening the stability of their currencies.
READ MOREWall Street Watch: U.S. Regulators Set to Rein In Executive Bonuses Amid Financial Scrutiny
U.S. banking regulators are reportedly revisiting a plan to restrict executive bonuses at large banks. This initiative, involving six agencies such as the FDIC and OCC, aims to enforce deferred compensations and enhance clawback measures for bonuses in case of financial losses. The proposal, which could be introduced soon, excludes the Federal Reserve from its drafters. This move comes amid longstanding debates over Wall Street executives' pay and the need for more rigorous financial accountability.
READ MOREZeroHedge: Gold's "Catapult Has Been Built; Silver's is Next"
The time has come to cite the many reasons why Gold has risen, and why Gold will continue to launch to much higher levels. ZeroHedge explains 20 solid reasons for the gold breakout... and why silver will be next.
READ MOREThe Psychology of Inflation: Why Many Dispute Government Inflation Figures
The psychology of inflation plays a significant role because it impacts individuals differently based on their personal circumstances. For homeowners with fixed mortgage rates and minimal debt, inflation may pose little threat to their financial stability. However, for renters, prospective homebuyers, or those needing to purchase big-ticket items or borrow money, inflation can be severely detrimental. This disparity in experiences contributes to widespread skepticism about official inflation figures, as people feel the impacts of inflation vary greatly from what is reported by the government.
READ MOREU.S., Japan, and South Korea Unite to Stabilize Dollar
The Biden administration, along with Japan and South Korea, is taking coordinated action to curb the recent surge of the U.S. dollar against Asian currencies, which has been exacerbated by changing market expectations regarding U.S. interest rates. This collaborative effort was highlighted in a joint statement by U.S. Treasury Secretary Janet Yellen and her counterparts, following a trilateral meeting in Washington. They expressed a commitment to closely monitor and consult on foreign exchange market developments, especially after recent U.S. inflation data prompted a reassessment of anticipated Federal Reserve rate cuts, leading to significant gains for the dollar. The finance ministers also recognized the serious concerns of Japan and South Korea regarding the rapid depreciation of their currencies.
READ MOREMetalsDaily – We need to talk about China...
In his latest article on MetalsDaily.com, Ross Norman highlights the significant purchasing trends on the Shanghai Futures Exchange (SHFE), which offer a glimpse into China's unique perspective on gold. Unlike the prevailing global view, China exhibits a distinct cognitive bias favoring gold, a stance not mirrored by weaker demand in other regions at current price levels. This discrepancy may stem from what's known as "false consensus bias," where people mistakenly believe others share their views. Norman's analysis suggests that understanding China's distinct market behavior is crucial for interpreting global gold trends.
READ MOREUS Treasury Yields Stabilize as Middle East Tensions Ease
After a significant rally, U.S. Treasuries have pared their gains following a de-escalation in Middle East tensions, which refocused attention on inflation expectations. The 10-year U.S. government bond yields dropped slightly by five basis points to 4.59%, nearly reversing an earlier 14 basis point decline. This change occurred after a senior Iranian official indicated that Iran would not immediately retaliate against Israel, easing fears of further conflict escalation. Despite this recent volatility reducing the impact of this year’s earlier sell-off, the 10-year Treasury is on track for a fourth consecutive week of losses. Investors are now anticipating a more gradual approach to monetary easing, reflected in the nearly one percentage point increase in bond yields from their late 2023 low, reaching levels last seen in November.
READ MOREMiddle East Tensions Stir Global Economic Concerns as Oil Prices Climb
Global central bankers are increasingly concerned about the Middle East's volatility and its potential to disrupt their efforts to control inflation. This anxiety was heightened when an Israeli attack on Iran caused crude oil prices to spike by more than 4%, surpassing $90 a barrel, although prices later stabilized somewhat. The incident underscores the delicate balance central bankers must maintain amidst geopolitical tensions that could reignite inflationary pressures. These developments come as world leaders, including UN Secretary-General Antonio Guterres, warn of the region's instability, and as top diplomats from the Group of Seven discuss global threats in Italy, all coinciding with the International Monetary Fund meetings in Washington where the economic implications of these geopolitical tensions are a focal point.
READ MOREGlobal Concerns Rise Over U.S. Economy's Impact on World Currencies
During President Joe Biden's campaign tour in Pennsylvania, he praised the U.S. economy as the strongest globally, but international financial leaders meeting in Washington for the IMF-World Bank spring meetings voiced concerns. They urged moderation, highlighting how the robust U.S. economy, characterized by high interest rates and a strong dollar, has negatively impacted other countries by devaluing their currencies and complicating efforts to reduce borrowing costs. These sentiments were underscored by Federal Reserve Chair Jerome Powell, who announced that expected rate cuts would be delayed due to persistent high U.S. inflation.
READ MOREGold Prices Rise for Fifth Week Amid Iran-Israel Tensions
Gold prices continued their upward trend, marking a fifth consecutive week of gains as investors sought refuge in the safe-haven asset amid escalating Middle East tensions between Iran and Israel. On Friday, spot gold increased by 0.1% to $2,380.68 per ounce and had earlier reached up to $2,417.59. The overall gain for the week was over 1%. U.S. gold futures also saw a rise of 0.1%, standing at $2,396.60. Tensions heightened following reported explosions in an Iranian city, attributed to an Israeli attack, although Iran downplayed the incident, suggesting no immediate retaliation. Analyst Peter Fertig highlighted that these geopolitical uncertainties are bolstering gold's status as a safe-haven investment.
READ MOREPowell Signals Delay in Rate Cuts Amid Ongoing Inflation Concerns
Federal Reserve Chair Jerome Powell has indicated that due to persistently high inflation, anticipated interest rate cuts might be postponed to later this year, potentially maintaining higher rates for an extended period. Speaking at the Wilson Center, Powell expressed concerns that recent data do not confirm inflation is under control and hinted it may take longer than previously expected to stabilize. He emphasized that if high inflation continues, the Fed is prepared to keep interest rates elevated as necessary. This stance suggests that the Fed might implement fewer rate reductions than the three quarter-point cuts previously forecasted in March.
READ MOREHas the Housing Market Crash Arrived?
The economy might be booming, but housing is in a recession: Top real estate CEO says he’s never seen anything like it in 20 years...
READ MORESilver Market Faces Major Deficit as Industrial Demand Hits Record Highs
The Silver Institute's annual World Silver Survey, conducted by UK-based Metals Focus, projects the silver market it to experience its second-largest deficit in two decades in 2024. This forecast is driven by a record 9% increase in industrial demand, expected to reach 710.9 million ounces, with the solar sector playing a crucial role. Demand for silver in photovoltaic (PV) solar panels alone is anticipated to surge by 20% to 232 million ounces. As a result, robust demand continues to surpass supply, supporting high silver prices and leading to a further depletion of above-ground stocks.
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