Mike Maharrey

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.

Well, that didn’t take long. In April, Zimbabwe introduced a gold-backed currency in an effort to stabilize the country’s financial system. Less than six months later, the Reserve Bank of Zimbabwe has already devalued the new money. I hate to say, “I told you so,” but, well, I told you so.

Talking heads and politicians laud the “resilience” of American consumers. They managed to keep spending despite rapidly rising prices thanks to post-pandemic price inflation. But they rarely talk about how Americans have weathered the inflationary storm. When you look hard, it’s not a story of resilience but one of desperation.

According to the Russian website Russia’s Pivot to Asia, Russian businesses are buying physical gold in Russia and then transporting it to Hong Kong via courier. There, the gold is sold, and the cash is deposited into the bank accounts of Chinese suppliers to pay for goods and services.

Nassim Taleb, best known for his book The Black Swan, said on X that “people are not seeing the real de-dollarization in progress.” He pointed out that global transactions are still generally labeled in dollars “as an anchor currency. But central banks (particularly BRICS) have been storing, that is putting their reserves, in Gold.”

ING Bank has revised its short and midterm gold price forecast higher, saying the gold rally is “just getting started.” The Dutch financial group cites the prospect of a Federal Reserve rate-cutting cycle, geopolitical risks, and uncertainty going into the presidential election as potential catalysts to drive gold to new record highs.

Gold demand in China has been strong this year, reflecting a broader movement of the yellow metal from the West to the East. But the Chinese aren’t just accumulating gold. They have also been hoarding silver in recent months. Is China deliberately driving up the price of silver to drain the West’s resources?

There has been quite a bit of pushback against central bank digital currencies. But in the scramble to block CBDCs, some people seem to have forgotten that there is a more fundamental problem: government-issued paper fiat is the parent of a CBDC, and whether it is in physical or digital form, fiat currency isn’t real money.

For the first time ever, a 400-ounce bar of gold is worth $1 million. We hit the $1 million gold bar milestone on Friday when the price of gold topped $2,500 for the first time. The price of gold is up about 22 percent on the year and has set several new records along the way.