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 NEWSSilver Stackers: "China Has Your Back" - Mike Maloney
Last night silver investors across the globe experienced the largest pullback we have seen for quite some time.
Silver vs Fiat: The Fall of Minimum Wage in Real Terms | Mike Maloney
In this eye-opening video, Mike Maloney breaks down complex economic concepts to reveal that the minimum wage has effectively fallen by over 70% ...
READ MOREFed Hints at Possible September Rate Cut
According to a Bloomberg survey of economists, the Federal Reserve is expected to signal its intention to cut interest rates in September at its upcoming July 30-31 meeting. While keeping rates unchanged at this meeting, the Fed is likely to use either its policy statement, Chair Powell's press conference, or both to indicate the upcoming rate cut. This move is anticipated to initiate a series of quarterly rate reductions through 2025, reflecting the Fed's growing confidence in inflation control and a balanced labor market. However, some economists believe the Fed may wait until later, possibly at the Jackson Hole symposium in August, to solidify this message.
READ MOREFBI Alerts Public to 'Courier Scam' Targeting Seniors' Life Savings
The FBI is warning about a widespread scam targeting seniors and others, where fraudsters convince victims that their bank accounts are compromised. The scammers then persuade victims to withdraw large sums of cash or purchase gold bars, which are collected by fake couriers posing as officials. This scheme has resulted in significant financial losses for victims, often amounting to hundreds of thousands or even millions of dollars. The FBI is actively investigating these cases and urging the public, especially seniors, to be vigilant against such fraudulent activities.
READ MORECanada's MSB Registry Under Scrutiny: A Loophole for Financial Crime?
An investigation by IJF and CTV National News has uncovered a concerning trend in Canada where multiple money services businesses (MSBs) are registered at the same address, often without the knowledge or consent of the actual occupants. This practice, which includes foreign currency dealers, money transfer businesses, and cryptocurrency exchanges, raises red flags for potential money laundering and terrorist financing. Financial crime experts warn that this goes against the spirit of Canada's registration requirements for high-risk businesses, with some of these MSBs allegedly involved in fraudulent investment schemes. The investigation highlights critical gaps in Canada's enforcement regime, allowing potential financial criminals to exploit the system.
READ MOREChina's Commodity Hoarding: Implications for Global Markets and Security
China's extensive stockpiling of commodities, driven by geopolitical concerns and supply chain disruptions, has reached unprecedented levels. Despite economic challenges, China's imports of essential resources like bauxite, cobalt, natural gas, crude oil, and soybeans have surged. This strategy includes expanding storage capacities and building substantial reserves, raising concerns about potential inflationary impacts on global commodity prices and strategic implications. Analysts warn that China's actions could reshape global trade dynamics and challenge the dominance of the U.S. dollar, particularly through initiatives like promoting a gold-backed renminbi.
READ MOREGold: The Unhackable Asset Continues to Shine
Gold, an enduring asset that "cannot be hacked, erased or degraded," has seen record-breaking prices recently. Despite silver being mined more historically, gold remains a preferred asset for central banks, with over 1,000 tonnes added to reserves in each of the past two years. Gold mining has increased dramatically over time, from 6 tonnes in 1681 to 3,100 tonnes in 2015, with total supply reaching 4,898.8 tonnes in 2023. While the gold price has recently dipped to a two-week low, it maintains its status as an unparalleled long-term store of value.
READ MOREGold at Two-Week Low, Copper Below $9,000/t
Gold and silver prices have experienced significant declines, with gold reaching a two-week low, due to stronger U.S. economic data reducing expectations for interest rate cuts. This has led to a decrease in the probability of a September rate cut. Copper prices have also fallen below $9,000/t, driven by weakening demand outlook in China, particularly in the property sector. While physical gold demand may increase in India due to import duty cuts, the overall sentiment in the metals market remains bearish, with steel inventories in China rising and crude steel production declining.
READ MOREU.S. Economy Defies Expectations with 2.8% Growth in Q2
The U.S. economy grew at a robust 2.8% annualized rate in the second quarter of 2024, surpassing expectations and showing resilience despite high interest rates and inflation. This growth was driven by increased consumer and business spending, which offset declines in housing construction and a widening trade gap. While consumer spending remained solid at 2.3%, there are signs of strain as Americans are saving less and relying more on credit, potentially indicating future economic challenges. This strong economic performance may influence the Federal Reserve's decisions on interest rates.
READ MORENYCB Sheds Mortgage Servicing Arm in $1.4B Deal with Mr. Cooper
New York Community Bank (NYCB) is selling its residential mortgage servicing business, including mortgage servicing rights and third-party origination platform, to Mr. Cooper for $1.4 billion. This move, announced alongside a $323 million second-quarter loss, is part of NYCB's strategy to transform into a "relationship-focused regional bank," according to CEO Joseph Otting. The sale, expected to close in the fourth quarter, suggests NYCB may be planning further divestitures as it refocuses its business model.
READ MOREThe Paradox of Gold: Prices Soar While Retail Investors Step Back
Gold prices have reached record highs, driven by geopolitical tensions, global elections, and economic uncertainties. Despite these factors traditionally boosting gold's appeal as a safe-haven asset, there's an unexpected twist: retail demand for gold has been declining even as prices continue to rise. This paradox suggests that the current gold rally may be fueled by factors beyond typical retail investor behavior, potentially indicating a disconnect between market prices and individual investor sentiment.
READ MOREGold Finds Support at 50-Day EMA, Eyes Gradual Rebound
Gold prices have found support at the 50-day EMA, suggesting a potential rebound after recent significant sell-offs. The market remains bullish in the long term, supported by an uptrend line and ongoing geopolitical risks, as well as central bank accumulation. While the $2,400 level presents resistance, breaking above it could lead to further gains towards $2,475. Investors are likely to view pullbacks as buying opportunities, indicating a gradual upward movement for gold.
READ MOREGold Prices Rebound Slightly, Investors Eye Fed's Preferred Inflation Gauge
Gold prices recovered slightly on Friday after a sharp decline the previous day, with investors awaiting key U.S. inflation data that could influence the Federal Reserve's interest rate decisions. Despite the modest gain, gold is down 1% for the week and 4.5% from its recent record high, pressured by strong U.S. economic growth data. While demand in China has weakened due to high prices and seasonal factors, India's gold market has been boosted by a reduction in import taxes. The precious metal remains up 15% for the year, with its price currently fluctuating between key moving averages.
READ MOREU.S. GDP Surges 2.8% in Q2, Outpacing Expectations as Inflation Eases
The U.S. economy grew at an annualized rate of 2.8% in the second quarter, surpassing economists' expectations of 2% and improving from the first quarter's revised 1.4% growth. This stronger-than-anticipated performance, coupled with easing inflation, suggests a robust economic outlook for the period. However, economists like Oren Klachkin of Nationwide predict this may be the best quarter of the year, with future growth likely to cool as consumer spending and business investments slow. The data has prompted speculation on when the Federal Reserve might start cutting interest rates, with markets anticipating a possible rate cut by the end of September.
READ MOREElon Musk Sounds Alarm on U.S. Fiscal Health as Debt Interest Consumes Tax Revenue
Elon Musk has warned that "America is going bankrupt" in response to a report highlighting the alarming proportion of U.S. income tax revenue being consumed by interest payments on the national debt. According to economist E.J. Antoni's analysis of the latest Monthly Treasury Statement, in June 2024, interest payments on Treasury debt securities amounted to 76% of the individual income tax revenue collected that month.
READ MORETriple Threat: U.S. Stocks, Gold, and Dollar Defy Economic Logic
The U.S. stock market, gold prices, and the dollar have all been soaring simultaneously, defying traditional economic explanations. While factors such as AI advancements, geopolitical uncertainties, and monetary policy expectations have been suggested as reasons, none fully account for all three trends. The most plausible explanation appears to be the robust U.S. economy, which has consistently outperformed expectations, driven by strong consumer demand and government economic initiatives. This economic strength has fueled demand for U.S. assets across the board, leading to the unusual concurrent rise in stocks, gold, and the dollar.
READ MOREJP Morgan's Warning Sparks Gold Rush
The current economic landscape, including geopolitical tensions, central bank purchases, and the upcoming U.S. presidential election, are creating a bullish environment for gold, according to analysts at JP Morgan. As equity markets face a significant downturn, gold is being touted as a "massive buying opportunity." Analysts predict a potential "new super bull" run for gold, especially if Donald Trump wins the election, given his previous presidency's impact on gold prices. The current pullback in gold prices is seen as an opportunity for investors who missed the initial surge, with experts forecasting 2024 as the "Year of the Metals."
READ MOREGovernment Measures Aim to Strengthen Demand for ZiG in Zimbabwe
Zimbabwe's Finance Minister Mthuli Ncube has announced measures to boost demand for the country's new bullion-backed currency, ZiG (Zimbabwe Gold). These include requiring government departments to accept ZiG for goods and services, mandating certain taxes be paid exclusively in ZiG, and increasing circulation of ZiG notes without expanding money supply. The government aims to strengthen the local currency, which replaced the Zimbabwean dollar in April after it lost 80% of its value against the US dollar, fueling inflation. Ncube credits the ZiG for helping to curb inflation and is implementing these measures to further support its adoption and stability.
READ MOREU.S. Dollar Stabilizes After Better-Than-Expected GDP Report
The U.S. dollar pared its losses on Thursday after data showed stronger-than-expected economic growth and slowing inflation in the second quarter. The GDP grew at an annualized rate of 2.8%, surpassing economists' forecasts of 2.0%. This positive economic data helped the dollar recover slightly against the yen and other currencies, though it remained down overall.
READ MOREU.S. Economy Defies Expectations: GDP Grows 2.8% in Q2
The U.S. economy showed unexpected resilience in the second quarter of 2024, with GDP growing at 2.8%, surpassing economists' expectations and accelerating from the first quarter's 1.4% growth. This robust performance comes despite high interest rates and persistent inflation, and amidst a heated political debate about the economy's health. While President Biden touts these figures as evidence of economic strength, nearly three in five Americans incorrectly believe the country is in a recession. The Federal Reserve is now considering when to start cutting interest rates as inflation shows signs of cooling towards their 2% target.
READ MOREConsumer Sentiment Gap Raises Recession Fears
The U.S. stock market and economy are currently experiencing an unusual split, which could mean trouble is on the horizon... There's a significant gap between the Conference Board's Consumer Confidence Index (CCI) and the University of Michigan's Index of Consumer Sentiment (UMICS), which has historically preceded recessions. In the past, this has been a reliable recession indicator. Factors contributing to these differing perspectives include disparities in stock and home ownership, varying impacts of interest rates, and contrasting employment reports. Investors are advised to recognize the validity of both perspectives to navigate these economic uncertainties effectively.
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