The startling size of US debt and its rapid pace of accumulation have many investors focused on the federal deficit. However, there’s another monstrous debt problem looming on the horizon: US credit card debt. Americans have collectively racked up more than $1 trillion in debt, underscoring the country’s problematic spending habits.

Understanding US Credit Card Debt

US credit card debt refers to the total amount of debt incurred through the use of credit cards among the entire American populace. It represents the money borrowed by consumers with the requirement to repay the principal amount plus interest by specific deadlines over time. The country’s entire credit card debt is a reliable indicator of consumer confidence, individual spending habits, and credit accessibility. This impact makes it an important consideration when assessing the broader economy’s health.

Similar to the impact of US national debt, credit card debt comes with advantages and considerations. It promotes economic growth through increased investment flexibility and convenience but also leads to financial strain and significant debt accumulation when not managed properly. Unfortunately, a toxic mix of irresponsible personal spending and federal fiscal policies has led to a potential credit card debt crisis in the US.

US Credit Card Debt in Numbers

It’s tough to underestimate the severity of US credit card debt which has recently notched record highs and shows no signs of slowing down. Dissecting the numbers behind this grim milestone can paint a more accurate picture for investors.

• $1.08 Trillion – The total amount of credit card debt among Americans
• 56 Million – The number of people who have carried debt for at least a year.
• 71% – The increase in US credit card debt over the past 10 years.
• $8,000 – The average credit card debt per person.
• 84 – The average number of credit cards owned by Americans.
• 30% – The amount the average annual percentage rate (APR) has increased in the last year and a half.
• 98% – The percentage of delinquent (90 or more days late) credit card balances.

👉 Related:What Happens if the US Defaults On Its Debt?

Why US Credit Card Debt Matters

In light of US debt surpassing $34 trillion, some investors might justifiably question the severity of credit card debt. After all, the government’s failed fiscal responsibility far outpaces that of the average consumer. However, that seemingly logical thought process ignores the relationship between national and credit card debt. While technically differing calculations, these two major forms of debt are synergistically detrimental. Here are some macroeconomic ripple effects of the surging credit card debt:

Economic Vulnerability

Consumers are the driving force behind the economy. When broad swathes of the population struggle to repay their debt, spending naturally subsides. This economic weakness doesn’t stay isolated as a rapid decline in investor confidence has the potential to rattle the foundations of the economy. This phenomenon is akin to what was witnessed following the Great Recession when a housing bubble tanked the entire economy.

Exacerbate National Debt

While not factored into the national debt, high levels of credit card debt indirectly affect the government’s ability to manage a balanced budget and service its debt. Higher levels of debt lead to reduced consumer spending which can slow economic growth. In the end, this reduces tax revenue which slashes federal income and compels increased borrowing.

Entrenched Volatility

One of the unseen and unacknowledged causes of this market volatility is credit card debt and other forms of consumer debt. Economic booms increase consumer confidence and encourage debt accumulation which can lead to inflationary pressures. During market downturns, high debt levels prolong recovery as consumers are reluctant to spend, instead focusing on repaying debt.

Global Implications

The US has enjoyed dominance on the global economic stage for nearly a century, but that prestige is starting to wane. Countries around the world are losing faith in the stability and security of the US dollar because of America’s debt problem. That includes national and credit card debt. This irresponsible spending across the board has set a process of de-dollarization in motion where governments actively transition away from dependence on the US.

Find Protection in Precious Metals

In the face of a looming debt crisis — on the federal and consumer level – you can take steps to minimize investment vulnerability and make sure you are diversified with physical investments such as precious metals. Gold and silver can offer protection from volatility of a potential debt crisis due to their tendency to rise while the rest of the economy falters.

If you’re interested in learning more about how you can diversify, protect, and grow your portfolio with gold and silver assets, download our FREE Precious Metals Investment Guide.

The startling size of US debt and its rapid pace of accumulation have many investors focused on the federal deficit. However, there’s another monstrous debt problem looming on the horizon: US credit card debt. Americans have collectively racked up more than $1 trillion in debt, underscoring the country’s problematic spending habits.

Understanding US Credit Card Debt

US credit card debt refers to the total amount of debt incurred through the use of credit cards among the entire American populace. It represents the money borrowed by consumers with the requirement to repay the principal amount plus interest by specific deadlines over time. The country’s entire credit card debt is a reliable indicator of consumer confidence, individual spending habits, and credit accessibility. This impact makes it an important consideration when assessing the broader economy’s health.

Similar to the impact of US national debt, credit card debt comes with advantages and considerations. It promotes economic growth through increased investment flexibility and convenience but also leads to financial strain and significant debt accumulation when not managed properly. Unfortunately, a toxic mix of irresponsible personal spending and federal fiscal policies has led to a potential credit card debt crisis in the US.

US Credit Card Debt in Numbers

It’s tough to underestimate the severity of US credit card debt which has recently notched record highs and shows no signs of slowing down. Dissecting the numbers behind this grim milestone can paint a more accurate picture for investors.

• $1.08 Trillion – The total amount of credit card debt among Americans
• 56 Million – The number of people who have carried debt for at least a year.
• 71% – The increase in US credit card debt over the past 10 years.
• $8,000 – The average credit card debt per person.
• 84 – The average number of credit cards owned by Americans.
• 30% – The amount the average annual percentage rate (APR) has increased in the last year and a half.
• 98% – The percentage of delinquent (90 or more days late) credit card balances.

👉 Related:What Happens if the US Defaults On Its Debt?

Why US Credit Card Debt Matters

In light of US debt surpassing $34 trillion, some investors might justifiably question the severity of credit card debt. After all, the government’s failed fiscal responsibility far outpaces that of the average consumer. However, that seemingly logical thought process ignores the relationship between national and credit card debt. While technically differing calculations, these two major forms of debt are synergistically detrimental. Here are some macroeconomic ripple effects of the surging credit card debt:

Economic Vulnerability

Consumers are the driving force behind the economy. When broad swathes of the population struggle to repay their debt, spending naturally subsides. This economic weakness doesn’t stay isolated as a rapid decline in investor confidence has the potential to rattle the foundations of the economy. This phenomenon is akin to what was witnessed following the Great Recession when a housing bubble tanked the entire economy.

Exacerbate National Debt

While not factored into the national debt, high levels of credit card debt indirectly affect the government’s ability to manage a balanced budget and service its debt. Higher levels of debt lead to reduced consumer spending which can slow economic growth. In the end, this reduces tax revenue which slashes federal income and compels increased borrowing.

Entrenched Volatility

One of the unseen and unacknowledged causes of this market volatility is credit card debt and other forms of consumer debt. Economic booms increase consumer confidence and encourage debt accumulation which can lead to inflationary pressures. During market downturns, high debt levels prolong recovery as consumers are reluctant to spend, instead focusing on repaying debt.

Global Implications

The US has enjoyed dominance on the global economic stage for nearly a century, but that prestige is starting to wane. Countries around the world are losing faith in the stability and security of the US dollar because of America’s debt problem. That includes national and credit card debt. This irresponsible spending across the board has set a process of de-dollarization in motion where governments actively transition away from dependence on the US.

Find Protection in Precious Metals

In the face of a looming debt crisis — on the federal and consumer level – you can take steps to minimize investment vulnerability and make sure you are diversified with physical investments such as precious metals. Gold and silver can offer protection from volatility of a potential debt crisis due to their tendency to rise while the rest of the economy falters.

If you’re interested in learning more about how you can diversify, protect, and grow your portfolio with gold and silver assets, download our FREE Precious Metals Investment Guide.

Gold ticks up but still sticking in a tight range Wednesday morning ahead of Fed minutes as markets eye Middle East tensions.

Investors were awaiting the minutes of the Federal Reserve’s last policy meeting, which are due out Wednesday, for signals on the central bank’s thinking about future interest rate cuts. The Fed is widely expected to keep interest rates elevated until June after a series of positive economic reports and negative inflation reports. Meanwhile, safe-haven demand for gold was buoyed by escalating conflict in the Middle East.

Front-month gold futures rose 0.8% Tuesday to settle at $2,039.80 an ounce on Comex after the most-active April contract fell 0.7% last week. Comex trading on Monday didn’t settle until Tuesday because of the U.S. Presidents Day holiday, which shuttered government offices, banks and financial markets. Bullion declined 0.2% in January after gaining 0.7% in December and rising 3.2% in November. The metal rose 13% in 2023. The April contract is currently up $0.90 (+0.04%) an ounce to $2040.70 and the DG spot price is $2028.70

In addition to the Fed minutes, a number of Fed officials are scheduled to speak this week and may provide further direction. They include Atlanta Fed President Raphael Bostic on Wednesday and Fed Governor Lisa Cook and Minneapolis Fed President Neel Kashkari on Thursday. The European Central Bank is also set to release an account of its January meeting on Thursday.

Last week, the U.S. consumer price index and producer price index came in hotter than expected for January, making it less likely that the Fed will cut rates in the next few months. But U.S. consumer sentiment increased for a third straight month in February, a sign of a resilient economy that the Fed may see as able to tolerate the high rates.

Higher interest rates are typically considered bearish for gold, so cuts would be supportive for the precious metal. But holding rates high for a longer period of time would be bearish.

About 93.5% of the investors tracked by the CME FedWatch Tool are betting that the Fed will keep rates unchanged next month, while 6.5% expect a 25 basis point cut. A month ago, about half of investors were anticipating a cut in March. A majority of investors tracked by the tool now also anticipate the Fed will hold rates steady at the following policy meeting in May, too. Most are now looking to June for a rate cut.

The central bank has raised interest rates by 5.25 percentage points since March 2022 in an effort to cut inflation, but kept rates unchanged at 5.25% to 5.50% earlier this month.

In other economic news, U.S. initial jobless claims and existing home sales are scheduled to come out Thursday.

Front-month silver futures fell 1.4% Tuesday to settle at $23.14 an ounce on Comex after the March contract gained 3.9% last week. Silver fell 3.8% in January after dropping 6.1% in December and advancing 12% in November. It ticked up 0.2% in 2023. The March contact is currently down $0.051 (-0.22%) an ounce to $23.085 and the DG spot price is $23.09.

Spot palladium gained 3.8% Tuesday to $996.50 an ounce Tuesday after rising 9.2% last week. Palladium tumbled 11% last month after advancing 8.6% in December and losing 9.5% in November. Palladium plummeted 38% last year. The current DG spot price is down $8.30 an ounce to $985.00.

Spot platinum edged up 30 cents Tuesday to $912.40 an ounce after increasing 3.6% last week. Platinum fell 8% last month after rising 8.1% in December and falling 0.7% in November. Platinum dropped 6.8% in 2023. The DG spot price is currently down $15.70 an ounce to $898.60.

Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or a recommendation regarding any particular security, commodity, or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities, or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand, and accept this disclaimer.

Gold ticks up but still sticking in a tight range Wednesday morning ahead of Fed minutes as markets eye Middle East tensions.

Investors were awaiting the minutes of the Federal Reserve’s last policy meeting, which are due out Wednesday, for signals on the central bank’s thinking about future interest rate cuts. The Fed is widely expected to keep interest rates elevated until June after a series of positive economic reports and negative inflation reports. Meanwhile, safe-haven demand for gold was buoyed by escalating conflict in the Middle East.

Front-month gold futures rose 0.8% Tuesday to settle at $2,039.80 an ounce on Comex after the most-active April contract fell 0.7% last week. Comex trading on Monday didn’t settle until Tuesday because of the U.S. Presidents Day holiday, which shuttered government offices, banks and financial markets. Bullion declined 0.2% in January after gaining 0.7% in December and rising 3.2% in November. The metal rose 13% in 2023. The April contract is currently up $0.90 (+0.04%) an ounce to $2040.70 and the DG spot price is $2028.70

In addition to the Fed minutes, a number of Fed officials are scheduled to speak this week and may provide further direction. They include Atlanta Fed President Raphael Bostic on Wednesday and Fed Governor Lisa Cook and Minneapolis Fed President Neel Kashkari on Thursday. The European Central Bank is also set to release an account of its January meeting on Thursday.

Last week, the U.S. consumer price index and producer price index came in hotter than expected for January, making it less likely that the Fed will cut rates in the next few months. But U.S. consumer sentiment increased for a third straight month in February, a sign of a resilient economy that the Fed may see as able to tolerate the high rates.

Higher interest rates are typically considered bearish for gold, so cuts would be supportive for the precious metal. But holding rates high for a longer period of time would be bearish.

About 93.5% of the investors tracked by the CME FedWatch Tool are betting that the Fed will keep rates unchanged next month, while 6.5% expect a 25 basis point cut. A month ago, about half of investors were anticipating a cut in March. A majority of investors tracked by the tool now also anticipate the Fed will hold rates steady at the following policy meeting in May, too. Most are now looking to June for a rate cut.

The central bank has raised interest rates by 5.25 percentage points since March 2022 in an effort to cut inflation, but kept rates unchanged at 5.25% to 5.50% earlier this month.

In other economic news, U.S. initial jobless claims and existing home sales are scheduled to come out Thursday.

Front-month silver futures fell 1.4% Tuesday to settle at $23.14 an ounce on Comex after the March contract gained 3.9% last week. Silver fell 3.8% in January after dropping 6.1% in December and advancing 12% in November. It ticked up 0.2% in 2023. The March contact is currently down $0.051 (-0.22%) an ounce to $23.085 and the DG spot price is $23.09.

Spot palladium gained 3.8% Tuesday to $996.50 an ounce Tuesday after rising 9.2% last week. Palladium tumbled 11% last month after advancing 8.6% in December and losing 9.5% in November. Palladium plummeted 38% last year. The current DG spot price is down $8.30 an ounce to $985.00.

Spot platinum edged up 30 cents Tuesday to $912.40 an ounce after increasing 3.6% last week. Platinum fell 8% last month after rising 8.1% in December and falling 0.7% in November. Platinum dropped 6.8% in 2023. The DG spot price is currently down $15.70 an ounce to $898.60.

Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or a recommendation regarding any particular security, commodity, or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities, or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand, and accept this disclaimer.

Gold rebounds near one-week high in holiday trading after posting two consecutive weekly losses on signs that the Federal Reserve will hold interest rates elevated for a few more months. The yellw metal getting support from a weakened dollar and Middle East tensions.

Prices were hovering just above the $2,000-an-ounce threshold but could come under increased pressure from high interest rates. The U.S. producer price index came in hotter than expected for January on Friday, coming on the heels of a similar showing by the consumer price index earlier in the week. Both made it less likely that the Fed will cut rates in the next few months. Most investors now aren’t anticipating a rate cut in June.

Comex electronic trading on Monday won’t settle until Tuesday because of the U.S. Presidents Day holiday, which has shuttered government offices, banks and financial markets. The light trading may make prices more volatile.

Front-month gold futures fell 0.7% last week to settle at $2,024.10 an ounce on Comex, though the most-active April contract gained 0.5% Friday. Bullion declined 0.2% in January after gaining 0.7% in December and rising 3.2% in November. The metal rose 13% in 2023. The April contract is currently up $3.90 (+0.19%) an ounce to $2028.00 and the DG spot price is $2018.30.

Wholesale prices rose more than expected in January, in a further sign of persistent inflation. The PPI rose 0.3% in January, the biggest monthly move since August, according to data released Friday from the Labor Department. Economists had forecast a gain of 0.1% after PPI fell 0.2% in December. So-called core PPI, which excludes volatile food and energy prices, also came in above expectations, gaining 0.5% compared with estimates of a 0.1% gain.

So-called core CPI, the cost of goods excluding volatile food and energy prices, gained 0.4% in January and was up 3.9% from a year earlier, according to data from the Labor Department earlier in the week. That compares with economists’ forecasts for 0.3% and 3.7% respectively. Including food and energy, the CPI rose 0.3% for the month and 3.1% year on year, compared with estimates of 0.2% and 2.9% respectively.

But U.S. consumer sentiment increased for a third straight month in February, a sign of a resilient economy that the Fed may see as able to tolerate the high rates. Sentiment rose to the highest level since July 2021, according to the preliminary February reading from the University of Michigan.

Higher interest rates are typically considered bearish for gold, so cuts would be supportive for the precious metal. But holding rates high for a longer period of time would be bearish.

About 89.5% of the investors tracked by the CME FedWatch Tool are betting that the Fed will keep rates unchanged next month, while 10.5% expect a 25 basis point cut. A month ago, more than 55% of investors were anticipating a cut in March. A majority of investors tracked by the tool now also anticipate the Fed will hold rates steady at the following policy meeting in May, too. Most are now looking to June for a rate cut.

The central bank has raised interest rates by 5.25 percentage points since March 2022 in an effort to cut inflation, but kept rates unchanged at 5.25% to 5.50% earlier this month.

Front-month silver futures gained 3.9% last week to $23.48 an ounce on Comex after the March contract advanced 2.3% Friday. Silver fell 3.8% in January after dropping 6.1% in December and advancing 12% in November. It ticked up 0.2% in 2023. The March contract is currently down $0.365 (-1.55%) an ounce to $23.110 and the DG spot price is $23.09.

Spot palladium rose 9.2% last week to $960.00 an ounce, though it slipped 1% Friday. Palladium tumbled 11% last month after advancing 8.6% in December and losing 9.5% in November. Palladium plummeted 38% last year. The current DG spot price is down $10.30 an ounce to $952.50.

Spot platinum increased 3.6% last week to $912.10 an ounce after gaining 0.7% Friday. Platinum fell 8% last month after rising 8.1% in December and falling 0.7% in November. Platinum dropped 6.8% in 2023. The DG spot price is currently down $8.60 an ounce to $904.90.

Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or a recommendation regarding any particular security, commodity, or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities, or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand, and accept this disclaimer.

Gold rebounds near one-week high in holiday trading after posting two consecutive weekly losses on signs that the Federal Reserve will hold interest rates elevated for a few more months. The yellw metal getting support from a weakened dollar and Middle East tensions.

Prices were hovering just above the $2,000-an-ounce threshold but could come under increased pressure from high interest rates. The U.S. producer price index came in hotter than expected for January on Friday, coming on the heels of a similar showing by the consumer price index earlier in the week. Both made it less likely that the Fed will cut rates in the next few months. Most investors now aren’t anticipating a rate cut in June.

Comex electronic trading on Monday won’t settle until Tuesday because of the U.S. Presidents Day holiday, which has shuttered government offices, banks and financial markets. The light trading may make prices more volatile.

Front-month gold futures fell 0.7% last week to settle at $2,024.10 an ounce on Comex, though the most-active April contract gained 0.5% Friday. Bullion declined 0.2% in January after gaining 0.7% in December and rising 3.2% in November. The metal rose 13% in 2023. The April contract is currently up $3.90 (+0.19%) an ounce to $2028.00 and the DG spot price is $2018.30.

Wholesale prices rose more than expected in January, in a further sign of persistent inflation. The PPI rose 0.3% in January, the biggest monthly move since August, according to data released Friday from the Labor Department. Economists had forecast a gain of 0.1% after PPI fell 0.2% in December. So-called core PPI, which excludes volatile food and energy prices, also came in above expectations, gaining 0.5% compared with estimates of a 0.1% gain.

So-called core CPI, the cost of goods excluding volatile food and energy prices, gained 0.4% in January and was up 3.9% from a year earlier, according to data from the Labor Department earlier in the week. That compares with economists’ forecasts for 0.3% and 3.7% respectively. Including food and energy, the CPI rose 0.3% for the month and 3.1% year on year, compared with estimates of 0.2% and 2.9% respectively.

But U.S. consumer sentiment increased for a third straight month in February, a sign of a resilient economy that the Fed may see as able to tolerate the high rates. Sentiment rose to the highest level since July 2021, according to the preliminary February reading from the University of Michigan.

Higher interest rates are typically considered bearish for gold, so cuts would be supportive for the precious metal. But holding rates high for a longer period of time would be bearish.

About 89.5% of the investors tracked by the CME FedWatch Tool are betting that the Fed will keep rates unchanged next month, while 10.5% expect a 25 basis point cut. A month ago, more than 55% of investors were anticipating a cut in March. A majority of investors tracked by the tool now also anticipate the Fed will hold rates steady at the following policy meeting in May, too. Most are now looking to June for a rate cut.

The central bank has raised interest rates by 5.25 percentage points since March 2022 in an effort to cut inflation, but kept rates unchanged at 5.25% to 5.50% earlier this month.

Front-month silver futures gained 3.9% last week to $23.48 an ounce on Comex after the March contract advanced 2.3% Friday. Silver fell 3.8% in January after dropping 6.1% in December and advancing 12% in November. It ticked up 0.2% in 2023. The March contract is currently down $0.365 (-1.55%) an ounce to $23.110 and the DG spot price is $23.09.

Spot palladium rose 9.2% last week to $960.00 an ounce, though it slipped 1% Friday. Palladium tumbled 11% last month after advancing 8.6% in December and losing 9.5% in November. Palladium plummeted 38% last year. The current DG spot price is down $10.30 an ounce to $952.50.

Spot platinum increased 3.6% last week to $912.10 an ounce after gaining 0.7% Friday. Platinum fell 8% last month after rising 8.1% in December and falling 0.7% in November. Platinum dropped 6.8% in 2023. The DG spot price is currently down $8.60 an ounce to $904.90.

Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or a recommendation regarding any particular security, commodity, or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities, or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand, and accept this disclaimer.