Monthly Archives: September 2023
Recommended Headline News & Opinion
200 Years of Global Gold Production, by Country (ELEMENTS)
Talk about striking gold! Britain’s oldest coin hoard is discovered in Buckinghamshire dating back 2,173 years (Dailymail)
Made in 150BC
aXedras and the Royal Canadian Mint collaborate on digitalization of provenance and product integrity (Newswire)
More trends of digitalization of gold
Bribing Senators With Gold Bars
Not A Joke But A Sign Of The Times
(USAGOLD – 9/27/2023) Gold is experiencing a strong reversal this morning from the low of $1864 yesterday. Gold is trading up at $1875.39, up $10.16. Silver is also positive trading at $23.42, up 79 cents. Treasury yields have taken a breather this morning from their rapid sell off this week.
Central Banks, Gold Accumulation, and the Inflation Charade: Insights from Frank Giustra
Physical Gold Is Moving East
(USAGOLD – 9/27/2023) After Gold’s ~$20 move down yesterday, the yellow metal still remains under pressure. Gold is down $1.73 to $1873.34. Silver is slightly up 6 cents to $22.60. With the looming government shutdown unresolved and Treasury yields continuing to climb, Gold has yet to find it’s footing. In a recent interview with Daniela Cambone, Frank Giustra offers a critical perspective on the global financial landscape, emphasizing the significance of gold in the current economic scenario. He warns, “The next crash is underway for a specific reason that almost no one is paying attention to.”
Recommended Headline News & Opinion
Must-watch: Singapore Reserves Revealed insight into the country’s rainy day fund (CNA)
Insight into the country’s rainy day fund
Gold hastens retreat on higher-for-longer rate bets (Reuters)
Costco is selling gold bars and they are selling out within a few hours (CNBC)
$1.50 Hotdog and an ounce of gold
Gold’s Timeless Value in the Age of Digital Currencies and De-dollarization
93% Of Monetary Authorities Around The World Are Considering Central Bank Digital Currencies (CBDC)
(USAGOLD – 9/27/2023) Gold and Silver are under continued pressure for a third day in a row this week. Gold is down $9.26 to $1891.39. Silver is down 22 cents to $22.63. An article from Markets Insider highlights that approximately 93% of global central banks are investigating the potential of introducing their own digital currencies. These central bank digital currencies (CBDCs) have the potential to enhance local-currency payments and further the de-dollarization movement, as stated in a research paper by the International Monetary Fund (IMF) staff. China has already launched a digital yuan, and Russia is progressing with plans for a digital version of the ruble. The introduction of CBDCs in dollarized or euroized economies could promote a more significant use of the local currency, making it a more appealing payment method. The Hong Kong Monetary Authority (HKMA) is set to expand its mBridge central bank digital currency (CBDC) initiative in response to the global trend of moving away from transactions in the U.S. dollar. The mBridge project, a collaboration involving multiple central banks and commercial banks, as a pivotal component in HKMA’s future plans. The platform aims to expedite cross-border payments, reduce costs, and enhance transparency.
Silver’s Ascending Role in the Electrifying Automotive Landscape
90 Million Ounces Of Silver Absorbed Annually In The Automotive Industry By 2025
(USAGOLD – 9/26/2023) Gold and Silver are under continued pressure this morning. Gold is down $6.19 to $1909.73. Silver is down 8 cents to $23.06. With the continued meltdown in bonds and the looming U.S. government shutdown, most markets – if not all – remain under pressure. A report conducted by Metals Focus delves into the increasing significance of silver in the automotive sector. Silver’s unique properties, including the highest thermal and electrical conductivity of any metal, have made it indispensable in a variety of automotive applications. The ongoing electrification of vehicles, transitioning from traditional ICEs to electric vehicles (EVs) and eventually to autonomous driving, is expected to further boost silver demand. In 2021, 61 million ounces of silver was used for auto manufacturing. By 2025, this figure could approach 90 million ounces.
UAE Emerges as Major Hub for Russian Gold Amid Western Sanctions
From London to the Gulf: The Reshaping of Gold Trade Dynamic
(USAGOLD – 9/25/2023) Gold and Silver open up slightly down from last week’s close. Gold starts off the week at $1924.12 down $1.11 from last weeks close. Silver is trading at $23.47, down 9 cents from last weeks close. The United Arab Emirates (UAE) has emerged as a significant trade center for Russian gold following the imposition of Western sanctions on Russia due to the Ukraine conflict. Following the conflict’s initiation, many global banks, logistics companies, and precious metal refiners ceased handling Russian gold, which was traditionally sent to London, a major gold trading and storage hub. However, Russian gold producers swiftly identified new markets in nations that hadn’t sanctioned Moscow, notably the UAE, Turkey, and China.
Takeaways From The 35th Denver Gold Forum Americas
Legends In The Mining Industry Discuss Where Gold is Going
(USAGOLD – 9/21/2023) Gold prices recovered some ground on Friday opening up this morning at $1,926.48, up $6.46. Silver is also positive at the open up 29 cents at $23.69. Gold prices appeared set to end the week with minimal fluctuations, despite experiencing a significant sell-off following the Federal Reserve’s policy meeting on Wednesday. The most interesting news this week was an interview out of the Denver Gold Forum.
Although the Denver Gold Forum is a predominately a gold mining conference, Danelle Cambone, from Stansberry Research, interviewed Pierre Lassonde, Frank Giustra and Robert Friedland for the Ultimate Gold Panel. The three main takeaways from this profound interview were:
1. Gold’s position in the global market, as its value has increased in various currencies worldwide including Japan, China, Turkey, Argentina, and Saudi Arabia, to name a few.
2. China’s role in the gold market, with the potential to become the dominant market in the future, leading to significant fluctuations in gold prices.
3. The digital transformation and the future of currency, including Central Bank Digital Currencies (CBDCs) and a digital gold currency that would exist outside the traditional banking system, providing users with a sense of security and autonomy.
USAGOLD Comment: The interview underscores the complexities of the global financial system, the evolving role of gold, and the potential shifts in global monetary dynamics. The panelists highlight the importance of understanding these changes and being prepared for the future implications they might have on investments and the broader economic landscape.
Fed Held Rates Unchanged (As Expected) – Neutral
Gold Rallied Up To Near $1950 Intraday Before Fading
(USAGOLD – 9/21/2023) After touching $1950 yesterday intraday and closing around $1930, Gold opened lower still today at $1916, down $14. Silver opens at $22.95, down 28 cents. The fed funds rate was kept unchanged in a range of 5.25%-5.5% on Wednesday after the central bank raised rates in July by 0.25%. The newly published dot plot suggests the Fed will likely raise rates by 0.25% one more time this year, and plans to hold interest rates at their historically high levels for longer than previously anticipated (indicating no rate cuts until at-least Q3 of 2024).
Enhanced Transparency In The Gold Supply Chain
Major Step In The Digitalisation Of Gold
(USAGOLD – 9/20/2023) Gold prices were trading slightly higher on Wednesday after rising for four straight sessions as investors await an interest-rate decision from the Federal Reserve. Gold is trading at $1,932.36, up a dollar, and Silver is trading at $23.32, up 12 cents. The Federal Reserve is expected to pause its interest-rate hikes Wednesday while leaving the door open for another increase as early as November.
In other news this week, All 33 World Gold Council members with operating mines, who collectively produce c.1,300 tonnes of gold per annum, have committed to publishing the names and locations of their refining partners on at least an annual basis, to include all operations where the primary revenue comes from the production of gold. David Tait, CEO of the World Gold Council, commented: “I am delighted that our members have committed to lead the way in transparency. Pursuing enhanced supply chain transparency is good for the companies who produce, the communities who benefit from employment, training and skills, and investors and consumers, who can be assured their gold has been responsibly produced and responsibly traded. The responsible gold mining industry should be rightly proud of the positive impact they have on the communities and countries where gold is mined.”
The Gold Bar Integrity Platform, an initiative started by the World Gold Council and LBMA, will provide the gold industry with a robust and verifiable ledger of responsibly mined gold, which will create significant opportunities for new product development and increase gold’s attractiveness as a trusted asset class for existing and new investors.
China Imported 900 Tonnes of Gold So Far This Year, Highest In Five Years
Does Physical Gold Provide a Hedge Against Recessions?
Horstmeyer Ran The Numbers, Fed Policy Update This Week
(USAGOLD – 9/18/2023) Gold and Silver opened up flat this morning, with Gold at $1,923.87, down 3 cents, and Silver at $23.03, with no change. Gold’s stubborn range bound trading continues to persist due to the ongoing battle between the Federal Reserve’s hawkish monetary policy stance and the looming threat of a potential recession, competing forces that remain the central focus in the broader market. This week, while the Federal Reserve commands the majority of the spotlight, investors will also closely monitor monetary policy announcements from the Bank of England, the Bank of Japan, and the Swiss National Bank. Investors have been closely monitoring gold demand in Japan due to a weakening yen, which has led to a surge in domestic interest in the precious metal. Currently, gold is trading at nearly historic levels against the yen, surpassing ¥284,000, and premiums for physical bullion are also maintaining their all-time highs.
It is with great sadness and a heavy heart that I share that my father, Michael J. Kosares, owner and founder of USAGOLD, passed away last Thursday (September 7, 2023) after a multi-year battle with cancer. He was 75 years old. After fifty years of dedication and devotion to the precious metals business, my father only hung-up his hat just a few weeks ago when he was physically no longer able to work.
Despite countless professional accolades over the course of his storied career, he was never one to boast, nor one to seek out acknowledgement or praise. For him, true success came in a well written article – one he deemed ‘had what it took’ to make a lasting impact, not necessarily just for our company, but for our industry as a whole, for our colleagues, for our clients, for our subscribers and site visitors, and for really anyone and everyone who took an interest in precious metals and encountered his work. He was an unwavering and tireless advocate for gold and silver ownership throughout his career, educating generations of investors on the merits of owning physical metals as a means to preserve and protect their wealth during turbulent economic times. From his hardcopy newsletter, ‘News & Views’, to three editions of his educational treatise, ‘The ABC’s of Gold Investing,’ to volumes of original content delivered via our website over the past 25 years, he spent five decades on the vanguard of gold market news, analysis, and commentary. A truly gifted writer, he made economics accessible, displaying again and again a remarkable ability to simplify even the most complex subjects for his readers. He would take on vast and complicated financial topics, distill them down to the salient points, weave in an interesting history lesson, and top it all off with a bit of clever humor – leaving his readers not only informed and enlightened, but truly entertained.
To say he will be missed is certainly an understatement. To answer ‘was his career a success?’, look no further than the countless individuals who know his name, have been inspired by his work and have benefitted from his wisdom. He leaves behind an exemplary legacy, and one I am deeply honored to carry forward.
COO/Owner – USAGOLD