Gold and Silver Industry & Investing News

Gold prices dropped about 1% after the June jobs report showed stronger employment numbers than economists expected. The precious metal had been trading higher earlier in the day but reversed course following the data release. Despite the pullback, analysts remain optimistic about gold’s long-term prospects, with some predicting it could reach $4,000 per ounce within the next year due to ongoing economic uncertainties and geopolitical concerns.

Texas Governor Greg Abbott has signed House Bill 1056, making gold and silver legal tender in the state starting May 1, 2027. The law allows residents to use precious metals for everyday transactions based on values determined by the state comptroller. While the legislation recognizes gold and silver as payment options, it doesn’t require businesses to accept them, and Federal Reserve notes remain valid. This move, along with Texas’s approval of a Bitcoin reserve, represents the state’s exploration of alternative currency options beyond traditional U.S. dollars.

Silver posted impressive 10% returns in June 2024, outperforming stock and bond markets in Japan, Europe, and the U.S. Historical data suggests this momentum could continue, as July has been silver’s strongest month over the past decade. Two key factors are driving silver’s gains: First, with gold up 43% over the past year, investors are turning to silver as an alternative precious metal. Second, industrial demand is growing from solar panels and semiconductors, especially with the AI boom. For investors interested in silver exposure, the iShares Silver Trust ETF offers the most liquid option with $17 billion in physical silver...

A key market sentiment indicator from Barclays is flashing warning signs of excessive speculation in US stocks. The bank’s “Equity Euphoria Indicator” has risen to 10.7%, well above its historical average of 7% and matching levels seen during previous market bubbles. This surge coincides with multiple signs of frothy market behavior: ARK Innovation ETF posting historic gains, SPAC listings exceeding the past two years combined, and volatile sectors like Bitcoin stocks (+78%), quantum computing (+69%), and meme stocks (+44%) recording massive second-quarter rallies. While optimism stems from potential trade deals and Fed rate cuts, market experts caution that fundamentals have...

The US is pushing global partners to reduce Chinese content in their supply chains through new trade deals. With a July 9 deadline approaching, countries face a stark choice: agree to US terms or face heavy tariffs. Key developments: India is negotiating how much local content qualifies products as “Made in India” (US wants 60%, India wants 35%) Vietnam faces tiered tariffs up to 20% based on Chinese component levels Taiwan and South Korea are already blocking Chinese goods from being rerouted through their countries The EU is under pressure to adopt strict supply chain rules similar to the UK’s...

Federal Reserve Chair Jerome Powell confirmed that the U.S. central bank will maintain its dollar swap lines program, which provides emergency dollar loans to other central banks during financial crises. Powell emphasized these swap lines have significantly contributed to global financial stability since the 2008 financial crisis. While some worry the Trump administration might end this international cooperation tool, no action has been taken yet. The Bank of Korea’s governor noted that countries still need their own reserves since the Fed can’t address all local dollar shortages.

US private-sector employment unexpectedly declined by 33,000 jobs in June, marking the first decrease in over two years according to ADP data. The drop was driven by service sector losses of 66,000 jobs, particularly in professional services, healthcare, and education. While manufacturing and construction added jobs, small and medium businesses reduced their workforce. Companies are becoming more cautious about hiring due to trade policy concerns and are working to align staffing with slower economic activity.

The euro zone achieved its inflation target in June, with consumer prices rising 2% year-over-year according to Eurostat’s flash data. This marks a slight increase from May’s 1.9% reading and aligns perfectly with the European Central Bank’s goal. Core inflation remained steady at 2.3%, but services inflation edged up to 3.3%, signaling potential underlying price pressures. ECB Chief Economist Philip Lane indicated that the major inflation-fighting cycle is complete, though the bank will remain vigilant. Markets responded positively, with the euro gaining against the dollar. Despite external risks like oil price volatility and potential U.S. tariffs, economists expect the ECB...

The Senate just passed President Trump’s major tax and spending package, which extends the 2017 tax cuts and adds new tax breaks for workers earning tips and overtime pay. The bill raises the state and local tax deduction limit to $40,000 for five years and includes significant cuts to Medicaid that would affect nearly 12 million Americans. It also ends tax credits for electric vehicles and clean energy projects earlier than planned, while providing $50 billion for rural hospitals and major funding for defense and immigration enforcement.