Gold and Silver Industry & Investing News

The global economic landscape is experiencing a fundamental shift, prompting central banks worldwide to reconsider their traditional investment approaches. OMFIF’s latest Global Public Investor report, surveying 75 central banks managing over $7 trillion in assets, reveals significant changes in reserve management strategies. Key findings show that 96% of reserve managers view US tariffs as a major concern, while over 80% rank geopolitics among their top three investment considerations. This marks a departure from the past decade when central banks primarily sought higher yields through riskier assets. Gold has become the standout performer, with 32% of central banks planning to increase...

Current gold market dynamics show interesting trends despite volatility from tariff discussions. Gold remains a foundational asset for central banks worldwide. The US Treasury holds 8,100 tons of gold across four locations (Fort Knox, NY Fed, Denver Fed, and West Point), valued at $42.22 per ounce on the Fed’s balance sheet, though market value is around $3,000. Gold is unlikely to face tariffs since most imports come from the UK (a trade surplus partner) and Switzerland (which refines 50-70% of global gold). Central banks have been major gold buyers for three consecutive years, purchasing over 1,000 tons annually to diversify...

Since the U.S. abandoned the gold standard in 1971, gold has delivered impressive 8.4% annual returns, nearly matching the 9.2% from global equities. Even more striking, gold has outperformed stocks since 2000, returning 10.1% annually versus 5.9% for equities. Gold’s true value lies in its diversification power – it moves independently from stocks and tends to perform best when equities struggle. During seven major stock market crashes since 1970, gold posted positive returns in six cases, averaging 17% gains. A balanced portfolio of 50% stocks and 50% gold would have outperformed either asset alone with less risk. As governments print...

According to a Defense Intelligence Agency report, US strikes on Iran’s nuclear program achieved far less than publicly claimed by President Trump and Israeli Prime Minister Netanyahu. While B-2 stealth bombers dropped 30,000-pound bunker-busters on the deeply buried Fordo facility, causing entrance collapses and infrastructure damage, the underground facilities survived largely intact. The assessment, based on sources familiar with the intelligence, indicates that Iran anticipated the strikes and moved critical highly enriched uranium out of multiple sites beforehand. With centrifuges mostly operational and only months of delay to their program, experts worry these limited results could actually accelerate Iran’s push...

The Federal Reserve is holding steady on monetary policy as it assesses the economic impact of tariffs, according to Minneapolis Fed President Neel Kashkari. Speaking at an event in Wisconsin, Kashkari acknowledged that recent inflation data has been “quite positive,” with the Fed’s preferred inflation measure dropping to 2.1% in April. However, he emphasized that the central bank needs more time to understand the full effects of tariffs on prices before adjusting interest rates. This cautious stance aligns with Fed Chair Jerome Powell’s recent testimony to Congress, where he indicated no rush to lower rates. Fed officials are currently split...

In congressional testimony on Tuesday, Fed Chair Jerome Powell stood firm against President Trump’s calls for immediate interest rate cuts, stating the Federal Reserve is “well positioned to wait” before making policy changes. Powell explained that the Fed expects tariffs to increase inflation in coming months, starting as early as June, and wants to observe these effects before adjusting rates. Despite Trump’s harsh criticism calling Powell “dumb” and “hardheaded,” the Fed Chair received bipartisan support from committee members who praised his focus on the Fed’s core mission. Powell indicated that rate cuts could come sooner if inflation proves weaker than...

HSBC’s strategy team is pushing back against investor skepticism about their bullish stock market outlook. Despite concerns about tariffs, dollar weakness, and geopolitical risks, HSBC argues these worries are overblown. They point to positive wage growth, household wealth increases, and the potential for AI-driven growth as reasons to be optimistic. The bank also notes that historically, stocks have risen 81% of the time following geopolitical shocks, and they believe current market positioning still signals a buying opportunity.

Central banks have been slowing their gold purchases recently, with buying dropping 33% quarter-on-quarter in early 2024, partly due to reduced purchases from major buyers like China. However, experts don’t expect this trend to signal a permanent decline. The weakening faith in the U.S. dollar as the primary reserve currency is driving continued interest in gold, with sanctions prompting countries to seek alternatives to dollar assets. Gold has already surpassed the euro to become the second-largest global reserve asset in 2024 and is up over 25% for the year. Despite the recent slowdown, analysts believe ongoing economic uncertainty, inflation concerns,...