Welcome back to our weekly precious metals market update, where we provide you with a comprehensive overview of the performance of gold, silver, platinum, and palladium. Whether you are a seasoned investor or someone considering precious metals as an investment option, this update will equip you with valuable insights into the recent performance of these timeless assets.
The first week of 2024 saw Gold measuring the markets while the December employment numbers hung over the mood of institutional investors about what 2024 would mean for interest rates. It is a confusing time for the markets. A better-than-expected jobs report would normally be good news, but some traders saw this as a potential signal to the Federal Reserve that their job is not in fact completed. History proves that when the Fed gets “involved” with the economy, they prefer not to stop “fiddling” until they break something.
One can only hope that they are satisfied with breaking the housing market, and sometime this year, perhaps the commercial real estate market. Gold has a very comfortable footing above the $2,000.00 mark, which is an extremely important psychological level. The all-time high is easily in sight and you would be hard pressed to find an economist, bank, or analyst that does not agree it will be breached this year. More information is in the weekly Blog on Wednesday.
There are some serious battles going on in Silver right now as is evident by the trading range last week. It will be important at the beginning of this year to watch when Silver and Gold break strides to determine how the loyalists of each interpret press releases and Government Reports. This will help determine if Silver still stands on its own and outside of Gold’s shadow.
The demand for physical Silver has not waned, which is a surprise based on the reduction of disposable income due to Bidenflation. Silver American Eagles maintain a 30% markup at the largest internet dealers. Bars and Rounds have closed the gap that was a more palatable option to own Physical Silver. There is very little difference in generic rounds and bars, with premium refineries being a little more expensive.
It will not be necessary to read about a global recovery of the manufacturing sector and economy to know that it has happened. One would only need to observe a sustained rally in the Platinum family of metals. Neither metal has cemented their reputation as an investment vehicle. Industrial demand clearly is the driving force behind this group.
It has been a disappointing couple of years but for speculators, there is an opportunity for a long-term play. Most of the fat has been trimmed on both Platinum and Palladium as the spot price approaches the production price. Both metals are near their absolute low, and some day in the future profits can be booked from this point
Outlook and Conclusion
2024 is destined to be a historic year. If you thought 2020 was trying, hang on to your hats. We will see headlines between now and November that we would not be able to imagine here in the first week of January. Metals are always strong in Presidential election years due to the “volatility index”. Couple that with the meteoric increase in Federal debt creation which is described in greater detail in the Wednesday Blog this week. It is no wonder the general consensus is behind a Recession and Gold price increases. There is never a bad time to buy Gold & Silver. But, some times are better than others.
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