Monthly Archives: November 2023
Decreasing Inflation Shouldn’t Stifle Gold Prices, Says Strategist (ETF Trends)
Demand should also stay elevated in the 2024 election year for the U.S
IMF, World Bank and BIS in first ‘tokenisation’ collaboration (Reuters)
“encoding policy and regulatory requirements” into a “common protocol”
An Unclassified Peek Inside Fort Knox Gold Depository (Coin Week)
Exclusive from former Director of the United States Mint
Reshaping Global Trade
UAE Joins BRICS in the Quest for De-Dollarization in Oil Markets
(USAGOLD – 11/30/2023) Gold prices have corrected following yesterday’s 6-month high. Gold is trading at $2,034.06, down $10.18. Silver is trading at $25.13, up 11 cents. The UAE’s shift from the US dollar to local currencies for oil trades reflects a strategic alignment with the BRICS alliance, marking a significant move away from dollar dominance in global oil markets. “Reports indicate that the UAE is eyeing potential oil and gas deals with up to 15 countries, including heavyweights like China, Russia, and Egypt, all of whom are members of the BRICS alliance and advocates of de-dollarization,” Jai Hamid reports. This decision, part of a broader trend towards de-dollarization, could reshape international trade dynamics, indicating the UAE’s role as a pivotal player in a diversifying global economy.
Gold, Silver And Bitcoin Shine Brightly This Holiday Season (Forbes)
Industrial demand for the white metal is expected to hit an all-time high this year
Gold bars and Tokyo apartments:How money is flowing out of China (Japan Times)
an estimated $50 billion a month has been taken out of China this year..
Panama’s top court rules First Quantum contract unconstitutional (Mining.com)
Cobre Panama mine accounts for about 1.5% of global production of copper
Breakthrough in Hydrogen Fuel Cell Technology
Silver Substitutes for Expensive Metals
(USAGOLD – 11/29/2023) Gold prices have retreated from their overnight peaks above $2,050 per ounce, responding to unexpectedly robust economic activity in the third quarter. Gold is trading at $2,039.32, down $1.65. Silver is trading at $25.03, up 1 cent. SLAC National Accelerator Laboratory reported a significant advancement in making hydrogen fuel cells more affordable and practical earlier this month. Researchers from the Department of Energy’s SLAC National Accelerator Laboratory, Stanford University, and the Toyota Research Institute, in collaboration with Technion Israel Institute of Technology, have developed a new approach to fuel cell catalysts. They have successfully reduced the reliance on expensive platinum group metals (PGM) by partially substituting them with silver. This substitution not only lowers the cost but maintains the effectiveness of the fuel cells.
The key innovation lies in simplifying the catalyst’s application onto the cell’s electrodes. Traditionally, the catalyst is mixed into a liquid and spread onto the electrode, a process sensitive to varying lab conditions and challenging to replicate in real-world applications. The SLAC team overcame this by using a vacuum chamber for more controlled catalyst depositions. This method, tested and validated in practical fuel cell applications by Technion, ensures reproducibility and direct applicability to full-scale fuel cells. The partnership’s success in creating a cost-effective, efficient fuel cell opens new possibilities for future research, including the potential to develop entirely PGM-free catalysts. This advancement is crucial for the viability of fuel cells in heavy-duty transportation and clean energy storage, contingent on the continued reduction of manufacturing costs.
Goldman says ‘shine is returning’ for gold as investors ramp up bets on rate cuts (CNBC)
CME’s FedWatch Tool shows a 25% probability of a cut as soon as March
Gold taking pole position in 2023; rhodium has fallen to the back of the pack (Heraeus)
The gold price is currently 8.4% higher than at the start of the year
Gold price hits six-month high as investors bet on rate cuts (FT)
“The US rate outlook is the key driver for gold”
Gold vs. Algorithm
Understanding Diverse Stablecoin Mechanisms in the Private Cryptocurrency Market
(USAGOLD – 11/28/2023) Gold prices continue to rise in early trading this morning. Gold is trading at $2,021.53, up $7.40. Silver is trading at $24.70, up 6 cents. A recent article written by Ruben Adeboy, delves into the contrasting mechanisms of gold-backed and algorithmic stablecoins, each offering a distinct approach to stability in the private cryptocurrency market. Gold-backed stablecoins derive their stability from the physical and historical value of gold, providing intrinsic value and attracting investors who appreciate the security of a tangible asset. However, they face challenges like scalability, centralized storage reliance, and regulatory complexities. Algorithmic stablecoins, in contrast, rely on smart contracts and dynamic algorithms to adjust supply based on market conditions, thus maintaining stability without direct linkage to physical assets. They offer flexibility and decentralization but face issues such as market volatility and governance complexities.
Digital Currency Disruption
How Crypto Stablecoins Threaten U.S. Financial Supremacy
(USAGOLD – 11/27/2023) Gold prices continue to climb higher with no major geopolitical developments over the long U.S. Thanksgiving holiday weekend. Gold is trading at $2,012.60, up $11.78. Silver is trading at $24.84, up 51 cents. In a recent FT article, Jay Newman and Richard Carty discuss the growing concerns around the use of dollar-based digital instruments, stablecoins, and crypto exchanges, particularly in relation to their impact on the global financial system and U.S. economic policies. These instruments pose risks to the traditional dominance of the U.S. dollar in international finance and they could undermine the United States’ ability to enforce economic sanctions and monitor financial transactions. Crypto stablecoins and exchanges, especially those tied to the Chinese Communist Party (CCP), could challenge U.S. financial supremacy by providing alternative, stateless, and unregulated platforms for monetary transactions. These platforms, being outside the global regulatory net, could be used for both legitimate and illicit activities, making them risky assets with no underlying collateral. Large-scale acceptance of these tokens could weaken U.S. legislative tools like the Trading with the Enemy Act and the International Emergency Economic Powers Act. The authors suggest, “One solution could be for the US government to create its own crypto exchange or to issue its own crypto token, but the Fed or in Congress are dragging their feet. Ignoring a problem won’t make it go away.”
USAGOLD Comment: The calls for a US CBDC get louder and louder under the guise of the government’s need to enforce economic sanctions and monitor financial transactions.
ETF Investors Bail On Gold Bullion For 5 Straight Months (Forbes)
Exchange-traded fund investors are falling out of love with gold bullion
China turns to households in fight to slash carbon emissions (Reuters)
Shenzhen’s “Carbon Road for Everyone” scheme, rewards people for logging their use of public transport, is one of dozens of programs around China encouraging citizens to ditch cars, plant trees and cut energy use
Interview: Joe Cavatoni – Chief Market Strategist For The World Gold Council (InvestmentNews)
Gold set to shine in 2024 thanks to increased central bank buying
The Daily Market Report will be back on Monday November 27th
Have a Great Thanksgiving!
The Digital Iron Curtain
Binance Chief Pleads Guilty To Breaking U.S. Anti-money Laundering Laws
(USAGOLD – 11/22/2023) Gold prices remained flat going in to the Thanksgiving holiday, hovering around $2,000. Gold is trading at $1,999.34, up $1.05. Silver is trading at $23.73, down 2 cents. Binance chief Changpeng Zhao stepped down and pleaded guilty to breaking U.S. anti-money laundering laws as part of a $4.3 billion settlement resolving a years-long probe into the world’s largest crypto exchange, Reuters reports. “Binance made it easy for criminals to move their stolen funds and illicit proceeds on its exchanges,” U.S. Attorney General Merrick Garland said on Tuesday. “Binance also did more than just fail to comply with federal law. It pretended to comply.”
In response to today’s DOJ and US Treasury press conference on the Federal charges against Binance, Balaji Srinivasan, famed angel investor and entrepreneur, suggests that a “Digital Iron Curtain” is descending over the Western world. This is marked by developments like the FedNow quasi-CBDC, increased surveillance, attacks on financial exchanges, and expanded civil forfeiture. This comes amid a backdrop of economic challenges, including a sovereign debt crisis and a crash in bond prices. The U.S. is deeply in debt, and central banks may need bailouts, making it difficult to exit to cryptocurrencies. He argues that those who remain unaware of these issues are living in an illusion, and advises positioning oneself away from financially and socially troubled areas. Balaji concludes, “Because if 2008 was about bank bailouts, soon we’re going to see central bank bailouts. Reverse bailouts, where your currency is debased to bail out the government. QE wasn’t free.”
Gold prices settle above $2,000 an ounce for highest finish late October (MarketWatch)
“Gold is seeing a pattern of strong buying demand coming out of Asia with India importing significantly more gold in October than was forecasted last month”
What asset tokenization will look like in 2024 and beyond (Yahoo)
A multi-trillion market by 2030
Gold in the MENA Region (BullionWorld)
A Profile of Gold Markets in Saudi Arabia,Turkey, Egypt, Iraq, Sudan, Libya, and the UAE
How traceability of gold became a focus for independent jewellers (FT)
Certification of small-scale miners provides ethical reassurance
Ray Dalio says U.S. reaching an inflection point where the debt problem quickly gets even worse (CNBC)
The government spent $659 billion on net interest costs in fiscal 2023 to finance the debt..
Shifting Global Trade Dynamics
China-Saudi $6.98 Billion Currency Swap Agreement
(USAGOLD – 11/21/2023) Gold prices popped higher to start the day, even surpassing $2,000 for a brief period during early trading this morning. Gold is trading at $1,997.73, up $19.77. Silver is also up, trading at $23.85, up 40 cents. Bloomberg reports The People’s Bank of China and the Saudi Central Bank have established a significant bilateral local currency swap agreement, valued at 50 billion yuan (approximately 6.98 billion U.S. dollars or 26 billion Saudi riyals). This agreement, valid for three years with the possibility of extension, marks a notable shift in the financial relationship between China and Saudi Arabia, indicating a move towards using local currencies in bilateral trade, including potentially in the oil sector. This step could signify a broader trend of reducing global reliance on the US dollar in international oil transactions.
Digital Asset Week 2023
Major Financial Institutions Embrace Tokenization and Digital Assets
(USAGOLD – 11/20/2023) Gold is moderately down as we go into the holiday week. Gold is trading at $1,968.67, down $12.15. Silver is trading at $23.41, down 31 cents. The Digital Asset Week (DAW23) conference was held in London last week and marked a significant step in the adoption of digital assets by major financial institutions. Key players like JP Morgan, BNY Mellon, BlackRock, and others shared their strategies for transitioning from proof of concept to production applications in digital assets. The focus was on liquidity, operational efficiency, and the development of new products like tokenized ETFs, securities lending, and repo. The conference also highlighted the growing interest in the tokenization of various assets, including precious metals, property, and private markets, with an emphasis on private protocols and networks to comply with jurisdictional laws and regulations.
Global Silver Industrial Demand Forecast to Achieve New High in 2023 (Yahoo)
Silver Industrial demand is expected to grow 8% to a record 632 million ounces (Moz) this year
JPMorgan adds ‘holy grail’ payments feature as part of blockchain push (Blockworks)
“a real-time and a programmable treasury”
How Can I Use My Gold In A Cashless Society (Robots)
Financial Crisis Protection..
The Shanghai Arbitrage
Unpacking China’s Shift in Global Financial Strategy
(USAGOLD – 11/17/2023) Gold is moderately higher and remaining stable going into the weekend. Gold is trading at $1,986.24, up $5.40. Silver is trading at $23.91, up 17 cents. China’s recent activities in the gold market point to a strategic shift in its approach to acquiring and managing gold reserves. The country has been actively purchasing gold, leading to a surge in global gold acquisitions, as it aims to reduce reliance on the U.S. dollar. This is evident from China’s central bank acquiring a significant amount of the total gold purchased by central banks worldwide. By July, China’s gold reserves were estimated to be the fifth-largest globally, amounting to 2,113 tonnes, representing 4% of its total declared assets.
Singapore to pilot use of wholesale central bank digital currencies in 2024 (CNBC)
Here they come..
IMF chief urges more proactive push for central bank digital currencies (Reuters)
When it rains it pours..
Human Rights Foundation (HRF) Launches Central Bank Digital Currency Tracker (HRF)
So you are informed going forward..
Fitch says US regional bank challenges to persist in 2024 (Reuters)
“Regional banks lacking in scale will be disproportionately pressured to reduce cost bases and optimize loan composition”
Hong Kong Ousts Dubai as Biggest Hub for Russian Gold Trade (Yahoo)
Hong Kong imported 68 tons of Russian gold this year, four times as much as the whole of 2022
I’m a Gen Z worker who just graduated and started my first full-time job. I was shocked by the 9-to-5 schedule. (Business Insider)
Says it’s really depressing to work a 9-to-5 schedule
Gold Gains Momentum as U.S. Inflation Slows
Fed Rate Hikes Questioned
(USAGOLD – 11/16/2023) Gold is rallying following the recent release of employment data, which unexpectedly revealed significant weaknesses in the U.S. labor market. Gold is trading at $1,973.24, up $13.39. Silver is trading at $23.96, up 52 cents. Saxo Bank reports the unexpected slowdown in inflation raised expectations that the Federal Reserve might end its rate hiking cycle, leading to a surge in global stock markets and a decrease in the U.S. dollar’s value. “Having just found support near $1930, the news helped send gold higher,” says Ole Hansen, Head of Commodity Trading. Gold’s rally is supported by central bank purchases and investor demand, with further upside potential if interest rates peak and reduce the cost of holding non-interest-bearing metals like gold. Even hedge funds like famed David Einhorn’s Greenlight Capital, snaps up SPDR Gold Trust GLD as it cuts stake in top two holdings, U.S. homebuilder Green Brick Partners and Pennsylvania coal miner Consol Energy, Morningstar reports.
USAGOLD Comment: Gold ETF total holdings have been drawn down for close to 18 months. Will the total holdings increase from here with hedge funds jumping in now?
Switzerland Explores New Banking Measures to Prevent Future Runs
(USAGOLD – 11/15/2023) Gold is gaining momentum as U.S. PPI drops 0.5%, sees biggest decline since April 2020. Gold is trading at $1,966.25, up $1.96. Silver is trading at $23.38, up 29 cents. Swiss authorities and leading banks, including UBS, are discussing new measures to prevent bank runs following Credit Suisse’s rescue earlier this year, Reuters reports. These talks, which are part of a broader review of the country’s banking rules, primarily target top Swiss banks and could significantly impact their wealth clients. Among the proposed measures are options to stagger a larger portion of withdrawals over extended periods and the possibility of imposing fees on exits. Another suggestion under consideration is to offer higher interest rates to clients who commit their savings for longer durations. These discussions are in the initial stages and involve the Swiss National Bank and the Swiss Finance Ministry. A representative from the finance ministry indicated that these discussions are part of an overall evaluation of the regulatory framework for banks deemed “too big to fail.” A report on this matter is expected to be published by the Swiss government in the upcoming spring.