Precious Metals News

John Maynard Keynes fired the first salvo in 1923 when he declared gold a “barbarous relic.” He argued that the gold standard was a primitive monetary system that “enlightened modern economies” had outgrown. He believed the future belonged to fiat currencies managed by economic technocrats.

This comes at a time when the silver supply is already under significant pressure. Silver demand is forecast to outstrip supply for the sixth straight year in 2026, driven by a 20 percent increase in physical investment offtake. Demand outstripped supply by about 95 million ounces last year, leading to the fifth straight market deficit

The bulk of the U.S. gold reserves held in Fort Knox is made up of impure “non-standard” bars that don’t qualify for use in international settlements. In practice, this means that most of America’s massive gold stockpile is illiquid and wouldn’t be readily accepted on the international market should the need arise.

In a move that netted a nice capital gain, the Banque de France (BdF) sold the remainder of its gold held in the U.S. and replaced it with higher-quality bars purchased in Europe. And while officials won’t talk about it out loud, it also gave the U.S. a little less control over French finances.

Despite sales by Turkey and Russia, net central bank gold buying was positive in February, rebounding from a tepid January. In total, central banks globally added a net 19 tonnes of gold to their reserves in February. That was up from just 5 tonnes in January.

When talking heads on CNBC or Fox Business talk about inflation, they always reference the CPI. This measures the price changes in a “basket of goods” and gives a fair approximation of price inflation (although intentionally understated), but it doesn’t give a good gauge on the trajectory of inflation as historically economically defined.

The Swiss Bankers Association says the yellow metal will continue to become more important as a store of value in an increasingly fragmented and politically uncertain global economy. “Against a backdrop of geopolitical and economic tensions and rising government debt, demand for safe investments is increasing.”

We know one reason there has been so much downward pressure on gold since the beginning of the Iran War: Turkey recently sold and swapped 60 tonnes of gold to support its currency. It appears some central banks are also being forced to sell assets to stabilize their own currencies and fund oil purchases as prices skyrocket.

India is increasingly bypassing the U.S. dollar in oil transactions. The U.S. granted India a waiver to purchase Russian oil despite ongoing sanctions, as the Iran war squeezes global crude supplies. However, the waiver expires on April 11. According to a Bloomberg report, Russian refiners are seeking alternative payment arrangements.

Even as gold faces significant price pressure as the Iran war drags on, dealers in Singapore are bracing for continued high demand. The Straits Times reports that bullion dealers, jewelers, and pawn shops report a surge in precious metals buying, and many retailers are boosting inventories to keep up with surging gold sales.

China imported 790 tonnes of silver through the first two months of 2026, with 470 tonnes flowing into the country in February. As Bloomberg described the situation, “Strong demand has pushed local prices well above international benchmarks, whittling down already-low exchange stockpiles and hoovering up metal from abroad.”

Following the escalation of conflict involving the United States, Israel, and Iran, the 10-year Treasury yield rose from 3.96 percent to 4.20 percent. Rising yields indicate falling bond prices and weakening demand. Instead of capital flowing into Treasuries, investors appear to be pulling away.

Despite gold’s sideways performance in recent weeks, UBS still expects gold to gain 20 percent from its current price this year. Since the big selloff in January, gold has generally traded in a range between $5,000 and $5,200 an ounce. It got a little bump when the U.S. began military operations in Iran, but quickly settled back into that range.

The federal government ran another big budget deficit in February, as the national debt nudges close to $39 trillion. According to the Monthly Treasury Statement, the Trump administration spent $307.5 billion more than it took in last month. This was almost identical to the February 2025 deficit, despite an increase in revenue.