Gold and Silver Industry & Investing News

Federal Reserve Chair Powell now warns that Trump’s new global tariffs will have “significantly larger than expected” economic effects, causing higher inflation and slower growth. This marks a shift from his March position that tariff impacts would be temporary. Despite these concerns, Powell emphasized the Fed will remain patient before adjusting interest rates, stating they are “well positioned to wait for greater clarity.” His priority is preventing temporary price increases from becoming a persistent inflation problem. Markets responded negatively during his remarks, with stocks falling and bonds rising. Powell believes policy uncertainty should decrease within a year, making the actual...

The U.S. stock market is experiencing a major two-day drop following President Trump’s announcement of new tariffs. The S&P 500 fell 4.8% on Thursday and continued falling over 5% on Friday, reaching as low as 5,101.75. However, it would need to fall further to 5,018.76 (a 7% drop) to trigger a “circuit breaker.” Circuit breakers are automatic pauses in trading that kick in during steep market declines. They were created after the 1987 market crash to prevent panic selling. There are three levels: a 7% drop pauses trading for 15 minutes, a 13% drop does the same, and a 20%...

Chinese gold demand is rising as trade war fears push investors toward this safe-haven asset. Chinese dealers now charge $6-$13 per ounce above global prices – a notable shift from last week when gold traded between a $4 discount and $1 premium. Analyst Ross Norman explains this as a “two-way market” where uncertainty brings in new buyers while others sell to lock in profits from record prices. New gold bars are selling particularly well. Meanwhile, Indian buyers are holding back, offering discounts up to $20 per ounce (improved from $33 discounts last week) as they wait for prices to stabilize....

Senate Republicans have started work on President Trump’s economic package, nicknamed his “big, beautiful bill.” This plan includes $4.5 trillion in tax breaks and $2 trillion in spending cuts. The Senate voted 52-48 to begin drafting their version, with only Republican Senator Rand Paul voting against it alongside all Democrats. This action follows the House Republicans’ proposal from last month. This economic package comes at a difficult time, as markets are still reacting to Trump’s new tariffs. While Democrats don’t have enough votes to stop the bill, they plan to use procedure rules to slow it down. Democrats argue the...

JPMorgan’s recent analysis casts doubt on Bitcoin’s status as “digital gold.” Investors appear to be reassessing their inflation protection strategies, with funds flowing from Bitcoin ETFs to gold-backed alternatives. Gold has reached record highs above $3,100 per ounce and currently attracts over $9 trillion in total allocations, including $4 trillion held by central banks. Bitcoin’s underperformance since early 2025 and its correlation with technology stocks have raised questions about its effectiveness as a safe haven asset. While cryptocurrency experts estimate Bitcoin’s production cost at around $62,000—potentially providing an empirical price floor—this support appears tenuous. Bitcoin ETFs have recorded significant outflows...

Early Friday morning the gold to silver ratio hit 100 to 1. This ratio represents how many ounces of silver it takes to purchase one ounce of gold. A ratio of 100 means that gold is trading at 100 times the price of silver, which is historically high. The long-term average over the past century has typically ranged between 40 to 60, making the current level notable for investors. A high ratio often suggests that silver may be undervalued relative to gold, potentially signaling a buying opportunity for silver or indicating unusual market conditions in precious metals.

A massive arbitrage trade in precious metals that flooded the United States with over $80 billion worth of gold and silver has suddenly ended following Wednesday’s announcement that these metals would be exempt from Donald Trump’s new tariff policy. For several months, traders had been responding to unusual price premiums in New York compared to global benchmarks, as markets priced in the risk of potential tariffs on precious metals. The price differentials—known in the industry as the “exchange for physical” or EFP—collapsed dramatically on Thursday after the exemption announcement. Gold’s premium dropped from over $62 to just $21 an ounce,...

Gold prices strengthened by 0.5% to $3,128.76 an ounce on Friday, continuing its upward momentum after hitting a record $3,167.57 earlier this week, as investors fled to safe-haven assets amid heightening global trade conflicts. China’s finance ministry announced retaliatory 34% tariffs on all US goods effective April 10, responding to President Trump’s announcement of a 10% baseline tariff on all US imports with higher duties for major trading partners. Despite some price volatility, analysts remain bullish, with City Index’s Matt Simpson suggesting strong support around $3,080 and Wisdom Tree’s Nitesh Shah projecting gold could approach $3,600 by early 2026. Physical...

Financial forecasters are increasingly concerned about recession risks following new trade tensions. J.P. Morgan has raised its global recession probability to 60% (from 40%), specifically citing “disruptive U.S. policies” as the biggest threat to economic stability. S&P Global increased its U.S. recession odds to 30-35% (from 25%), while Goldman Sachs raised its estimate to 35% (from 20%) even before the April 2 tariff announcement. These concerns follow the Trump administration’s broad tariff impositions and China’s subsequent retaliation, creating fears of escalating trade wars. Multiple institutions including HSBC, Barclays, BofA, Deutsche Bank, RBC, and UBS have issued warnings about heightened recession...

Gold prices have surged over 40% since late 2023, now approaching $3,200 per ounce. This increase stems not from jewelry or industrial demand but from gold’s role as a financial safe haven during uncertain times. Though gold pays no interest like bonds or dividends like stocks, it serves as protection against inflation and economic instability. Gold-backed ETFs have made it easier for investors to add gold to their portfolios. The metal demonstrated its value during COVID-19 when prices jumped 22% in six months despite low inflation. Central banks have also increased gold purchases following sanctions on Russia, as many seek...