Mike Maharrey

The gold-silver ratio has surged to over 90-1. This indicates that silver is extremely underpriced from a historical perspective. In other words, silver is on sale. The last time we saw a gold-silver ratio over 90-1 was in the early days of the pandemic lockdowns. In the modern era, the ratio has averaged between 40-1 and 60-1.

We could be setting up for a significant squeeze in the gold and silver markets. We’re seeing signs that tariff concerns are growing, creating an interesting dynamic in the London precious metals market. Owners of gold in London vaults can loan their metal on a short-term basis and last week, lease rates suddenly surged to over 3.5 percent.

Over the last four months, the Federal Reserve has cut interest rates by a full percentage point. It started with a supersize 50 basis point cut in September, followed by quarter-point cuts in November and December. But despite slashing rates, Treasury bond yields have risen sharply. What’s going on in the bond market?

China announced an increase in its official gold reserves in November. It was the first reported increase after a 6-month pause, and it appears it wasn’t a one-off event.
And by the way, the Chinese have a lot more gold than they admit.

For the first December since 2019, gold-backed ETFs globally reported net inflows of gold. Asian funds drove the global increase in ETF gold holdings to close out 2024. On the year, ETF gold holdings dropped modestly by 6.8 tons, but assets under management rose 26 percent to a record high of $271 billion thanks to skyrocketing gold.

Gold was one of the best-performing asset classes in 2024, outgaining the red-hot U.S. stock market. People who follow financial news know that gold had a great year. Despite its typical apathy toward gold, even the mainstream was forced to sit up and take notice. But you may not realize just how well gold did.

How awesome would it be to dig around in your garbage can and find gold? Well, that’s pretty much what the British Royal Mint is doing. No, you won’t find mint employees dumpster diving, but they have developed a process to turn electronic waste into gold and silver jewelry.

Analysts at major Wall Street banks expect the gold bull rally to continue into 2025. And mainstream analysts tend to think the year will remain free from any kind of significant economic chaos or crisis. Gold had a tremendous 2024, setting multiple records and closing the year with a 26.5 percent gain – one of the best-performing assets last year.

Producer prices came in hotter than expected in November. This came on the heels of a CPI report showing price inflation is sticky. With inflation worries mounting, investors sold gold. Wait. People sold an inflation hedge with increasing signs of inflation? Yes. You read that correctly.

After rebounding in September, central bank gold buying surged in October, doubling the 12-month average. Central banks added a net 60 tonnes of gold to reserves in October, the highest monthly total year-to-date, according to data collected by the World Gold Council.

It took 118 days to add another trillion dollars to the national debt. That’s just under 16 weeks. On Thursday, Nov. 21, the national debt officially blew past $36 trillion. To be exact, it hit $36,034,994,586,981.97. You might be thinking, “Didn’t we just eclipse $35 trillion? Yes. It was on July 26, just under four months ago.

According to a report by the World Gold Council, the answer is yes. Gold’s excellent conductivity and its malleability make it an important component in the manufacture of electronic devices. Gold can be formed into extremely thin wires, making the metal ideal for use in small computer chips.

This is the conclusion of a new report by Toronto-based Capitalight Research Inc. commissioned by the Silver Institute: “Institutional investors seeking to strengthen their portfolios through diversification should consider the compelling benefits of investing in silver.” The report focuses on increased fragility in the geopolitical environment.

The United Arab Emirates is poised to usher in an “Asian Century” for gold to challenge dollar dominance, according to a report published by the Dubai Multi Commodities Centre (DMCC). The UAE leapfrogged the United Kingdom to become the world’s second-largest gold trade hub in 2023.

After running the third-largest budget deficit in history in fiscal 2024, the Biden administration kicked off fiscal 2025 in a similar manner. The federal government ran a $257.45 billion budget shortfall to start the new fiscal year, with revenue down and spending up, according to the latest statement from the Department of Treasury.

We’re currently cursed to the tune of $35.9 trillion and counting. To make matters worse, the size of the debt is exacerbating the debt. Uncle Sam paid $1.13 trillion in interest expense in fiscal 2023. In fiscal 2024, the federal government paid more for interest expense than national defense and Medicare.

India has brought more of its gold home. Last spring, the Reserve Bank of India repatriated 100 tons of gold, moving it from the UK to vaults within India’s borders. According to a report by the New Indian Express, the RBI recently moved another 102 tons of gold home.

The votes are counted, and the results are in! Donald Trump will occupy 1600 Pennsylvania Avenue for the next four years. The GOP will also control both houses of Congress. Much will change in the next four years. But it’s also important to consider the things that will almost certainly stay the same…

Gold and silver have been on a tremendous run in 2024. In fact, they are the two best-performing assets this year. As of the end of October, silver was up by 42.4 percent, and gold was up by 33.7 percent. This compares to a 24 percent gain in the NASDAQ, the best-performing stock index.

While President Biden and talking heads in mainstream media talk about the amazing robust economy, retail stores are closing at a frenetic pace. According to Coresight Research, 6,189 stores have already closed in 2024. That puts retail store closures at the fastest pace since 2020, when government shutdowns decimated the retail sector.

Gold demand set a third-quarter record, driving the price to a series of record highs. Including over-the-counter (OTC) sales, gold demand came in at 1,313 tons in Q3, a 5 percent year-on-year increase. Gold averaged a record $2,474 an ounce in the third quarter. That represented a 28 percent year-on-year increase.

Eerily Symbolic: Treasury Seal Falls Off Podium as Yellen Is Asked About Dollar’s Status! The universe seems to know the dollar is in trouble. During a recent news conference, a reporter asked Treasury Secretary Janet Yellen, “How concerned are you about the potential impact of the dollar’s status as the world reserve currency?” And the seal fell off…

HSBC Hong Kong announced it will formally join China’s Cross-Border Interbank Payment System (Cips). The move is yet another body blow to dollar dominance. According to the Financial Times, it will give “the world’s biggest player in trade finance a key role in Beijing’s push to expand use of the renminbi.”

Gold is typically seen as a store of value. Over time, investors expect its price to keep pace with inflation. We find gold’s returns are tightly correlated with the general price level as measured by the consumer price index. Using this assumption, the long-term expected return for gold generally ranges between zero and 1 percent. However…

According to National Bank of Poland Governor Adam Glapiński, the county holds 420 tons of gold “on behalf of all Poles,” noting that Poland “has thus entered the exclusive club of the world’s largest gold reserve holders.” Only 10 countries hold more gold than Poland – Poland now holds more gold than Great Britain.

How close are Americans to hitting their credit card limits? Based on the latest consumer credit data from the Federal Reserve, they may be getting closer. American consumers have been yo-yo-ing between slowing credit card spending and going on spending sprees. But in August, credit card balances contracted significantly.

Gold is being boosted by a “debasement trade,” and according to JPMorgan analysts, this dynamic “may have legs.” According to a team of JPMorgan strategists led by Nikolaos Panigirtzoglou, the gold price has climbed above what should be expected, given these factors.

According to Bank of America, gold has overtaken the euro to become the world’s second-largest central bank reserve asset. With the central bank gold buying spree over the last several years, along with the rapid rise in price in 2024, the yellow metal now makes up about 16 percent of total reserve assets, just ahead of the euro.