Latest Gold & Silver Price News

Another Stock Market Selloff Could Drive More Bullion Buying

Another Stock Market Selloff Could Drive More Bullion Buying

Investors got a look at first quarter GDP, and it wasn’t pretty. The U.S. economy contracted by 4.8%, even worse than the 3.3% decline anticipated by economists. In addition to that bad news, 4 million more Americans filed for unemployment last week. More than 30 million people have lost jobs over the past 6 weeks, and the situation is only getting worse. The S&P 500 lost 2.8% on Friday. Perhaps equity investors are beginning to wonder if share prices, which have moved relentlessly higher in recent weeks, accurately reflect the dismal economic data. Warren Buffett certainly is. The famed investor announced his company, Berkshire Hathaway, had sold all of its […]

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Americans Just Can’t Get Enough Gold & Silver

| May 1, 2020 | COVID-19
Americans Just Can’t Get Enough Gold & Silver

Precious metals markets enter the month of May with some mixed signals near term.  But the long-term picture continues to look constructive.  All the metals appear to have put in major bottoms during the panic selling of mid to late March. Barring another wave of virus outbreaks and economic lockdowns, the gradual reopening of state, local, and national economies should start to unleash more industrial and jewelry demand in the not too distant future. And the extraordinary fiscal and monetary stimulus being pumped into the financial system will, if nothing else, work toward the debasement of the U.S. dollar. Earlier this week, the Federal Open Market Committee met and pledged […]

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Monster Gains in Mining Stocks Bode Well for Gold and Silver

Monster Gains in Mining Stocks Bode Well for Gold and Silver

April marks a second month of truly extraordinary developments in markets – from negatively priced crude oil futures to a record spike in unemployment claims to a lockdown-defying rally in stocks. The financial media is touting the S&P 500’s surge of more than 13% in April – the biggest one-month gain for the index since 1974. While stock market investors have made up a big chunk of their 2020 losses, the major averages and nearly all sectors within them are still down significantly for the year. One exception is the mining sector. The GDX Gold Miners ETF (NYSE:GDX) exploded 42% higher in April to make fresh new 7-year highs. For […]

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What’s Next, Trillion-Dollar Coins?

What’s Next, Trillion-Dollar Coins?

The massive set of stimulus measures rolled out last month by the Treasury Department and Federal Reserve has left many Americans wanting more… and politicians scheming for new ways to dole out additional trillions in cash. Most taxpayers have already received their $1,200 “stimulus” payments. However, that one-time payment will do little to repair the long-term financial health of the 26 million (and rising) who are newly unemployed. And it surely won’t bail out all the small business owners who were callously deemed “non-essential” and forced to shut down during this pandemic. A national WalletHub survey found that 84% of Americans want another stimulus check. The idea of getting free money is […]

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The Oil Futures Crash Is a Warning to Gold Speculators

The Oil Futures Crash Is a Warning to Gold Speculators

The metals complex showed relative stability this week as the oil market suffered a historic meltdown. West Texas Intermediate Crude crashed 70% at one point this week on the continuous contract, bringing prices briefly below $7 per barrel. By Thursday, prices were trading between $14 and $18 per barrel. The volatility on the May futures contract was even more extreme. On Monday, May futures for crude oil crashed to one dollar, then to zero, then to a few pennies below zero, then to an unbelievable negative $37 per barrel. With the world literally running out of places to store oil, oil contracts for immediate physical offtake represented a liability rather […]

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Is Physical Money on the Verge of Elimination?

Is Physical Money on the Verge of Elimination?

The metals markets are being pulled in multiple directions simultaneously like never before. The global virus-triggered economic freeze has caused industrial demand for all commodities to crater. At the same time, mining output is also crashing as virus fears force many mines around the world to suspend operations. What is the “right” equilibrium price for copper, silver, gold, and other metals in an environment of such extreme and unstable supply and demand stresses? The verdict of the market changes – often dramatically – day by day. In March, hard assets tumbled along with stocks as investors priced in increasingly dire scenarios for the economy. A double-digit contraction in U.S. GDP and double-digit spike […]

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Markets Completely Decouple from Reality

Markets Completely Decouple from Reality

Investment demand for physical gold and silver is unrelenting. Buying activity actually picked up slightly last week as paper gold and silver prices drifted sideways to lower. Once again, anyone simply watching the gold price on CNBC would be shocked to know just how many people are buying gold. The Fed, and the cabal of Wall Street Banks it represents, are undoubtedly relieved to have metals prices under control. But they have a serious problem and it is bigger than the gold market. The disconnect between virtually all paper asset prices and real-world fundamentals has never been greater. The screen capture below pretty well sums it up: The ponies at […]

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Supply, Demand, and Depreciation: Key Drivers for Metals as the Economy Reopens

Supply, Demand, and Depreciation: Key Drivers for Metals as the Economy Reopens

The metals markets are being pulled in multiple directions simultaneously like never before. The global virus-triggered economic freeze has caused industrial demand for all commodities to crater. At the same time, mining output is also crashing as virus fears force many mines around the world to suspend operations. What is the “right” equilibrium price for copper, silver, gold, and other metals in an environment of such extreme and unstable supply and demand stresses? The verdict of the market changes – often dramatically – day by day. In March, hard assets tumbled along with stocks as investors priced in increasingly dire scenarios for the economy. A double-digit contraction in U.S. GDP and double-digit spike […]

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All of the Economic Recovery Models Will Be Wrong Too

All of the Economic Recovery Models Will Be Wrong Too

“All of the projection models were wrong. All of them,” admitted New York Governor Andrew Cuomo in an interview last week with MSNBC. Governor Cuomo had been issuing frantic demands for tens of thousands of ventilators… that turned out not to be needed as the rate of new hospitalizations for COVID-19 infections in New York plunged with surprising speed. Governor Cuomo had warned America that New York City was the canary in the coal mine, that other cities would soon suffer similar death rates. And based on models cited by Dr. Anthony Fauci just a few days ago, the United States was expected to rack up around 200,000 deaths from […]

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Federal Reserve Notes Are Now “Backed” by Junk Bonds

Federal Reserve Notes Are Now “Backed” by Junk Bonds

Wild price action and unprecedented interventions once again characterized this holiday-shortened trading week. Oil prices whipsawed lower Thursday on concerns about expected oil production cuts from Russia and Saudi Arabia.  But the general trend for most other assets, including metals and equities, was up – way up. Stocks finished out the week with the major averages posting their biggest weekly gains in decades in the space of just four trading days.  Investors went on a buying spree based on hopes that we will soon see a definitive peak in coronavirus cases and begin the process of restarting the economy. The stock market also got another boost from the Federal Reserve.  […]

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All Is Not Well in the Gold Paper Markets

All Is Not Well in the Gold Paper Markets

London Bullion Market Association (LBMA) officials have loudly proclaimed there are plenty of gold bars in LBMA and COMEX vaults to meet surging demand from buyers. Unfortunately for them, confidence is particularly fragile these days and cracks are starting to appear. Which is why anxious officials there issued not one, but two memos last week in an attempt to reassure traders. It’s interesting the LBMA, along with the COMEX, felt a need to put out back to back statements. If inventories are plentiful, both exchanges should be busy delivering gold, on time and without delay. The best way to build confidence is simply to meet buyers’ expectations. The trouble is these expectations […]

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Crisis Exposes Devastating Consequences of Fed Policy: Americans Have No Savings

Crisis Exposes Devastating Consequences of Fed Policy: Americans Have No Savings

Two weeks ago, during a March 17 address to the nation in response to the COVID-19 outbreak, President Donald Trump asked that Americans work from home, postpone unnecessary travel, and limit social gatherings to no more than 10 people. And last week, on March 27, Trump signed a stimulus package of over $2 trillion dollars to provide relief to an economy on the precipice of collapse. The aid package includes handouts and loans to individuals, small businesses, and other distressed industries. Despite Trump’s “having created the greatest Economy in the history of our Country,” when the markets tanked, massive and immediate government intervention was the only thing left to forestall […]

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Gold & Silver Mines Closed as Physical Silver Becomes “Most Undervalued Asset”

Gold & Silver Mines Closed as Physical Silver Becomes “Most Undervalued Asset”

A surge in coronavirus cases, an expansion of economic lockdowns, and an explosion in unemployment claims hit markets this week.  But this deluge of bad news didn’t seem to catch investors by surprise. Instead of crashing to new lows, the stock market held within a trading range and rallied yesterday following the release of a horrific jobs report. It’s been a huge week for commodity markets as oil prices posted their biggest single day percentage gain ever Thursday, popping more than 25%.  Oil prices lifted from their severely depressed $20 per barrel level after President Donald Trump met with oil executives and announced Russia and Saudi Arabia would agree to […]

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How the C-Factor Could Decimate 2020 Global Gold and Silver Production

How the C-Factor Could Decimate 2020 Global Gold and Silver Production

Item: March 16, 2020. A huge poly-metallic (gold, silver, copper) mining operation in Mongolia “has suspended operations” after authorities “restricted the movement of goods and people within the country.” Item: March 17. In Peru, one of the world’s largest primary silver-gold producers has its 4 mines “temporarily suspended” following the Government’s Declared State of Emergency. Item: March 18. A Canadian mining major suspends construction of a $4.7b copper mine upgrade in Chile affecting 15,000 workers. Item: March 20. Argentina declares a state of emergency and imposes “a nationwide mandatory quarantine starting today.” Silver and gold mines across the country move to halt operations, except for “a reduced workforce to ensure appropriate safety, security and […]

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