Gold and Silver News

The U.S. dollar (USD) is under threat from various fronts. Stock market losses, bearish unemployment numbers, and impending rate cuts rattle the domestic economy. From abroad, the growing coalition of BRICS nations challenges USD dominance.

In this week’s The Gold Spot, Scottsdale Bullion & Coin Founder Eric Sepanek and Sr. Precious Metals Advisor Steve Rand discuss how the economy is cooling, the growing de-dollarization block, and the importance of financial privacy.

Slowing Economy

Job openings dropped to the lowest level in over three years, according to a report from the Labor Department. The openings fell more than 5% below expectations, undermining the incumbent administration’s reassurances that the economy remains strong. This decline follows significant layoffs, particularly in the tech sector, as companies grapple with broad economic troubles.

These employment challenges have also been mirrored in Wall Street’s recent performance, with significant losses earlier this week. NVIDIA, often seen as a bellwether for the broader stock market, experienced the largest single-day loss of any U.S. company. The S&P 500 has already seen consecutive losses, reversing its record-setting growth earlier this year. Global markets have followed suit, with notable declines in Japan and Europe.

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These weaknesses increase the likelihood that the Federal Reserve may adopt a more aggressive approach to cutting interest rates, which could weaken the dollar quicker than anticipated. Fed Chair Jerome Powell has made it clear that slashes are incoming, but investors are holding their breath in anticipation regarding the pace of those cuts. Generally, a declining economy triggers more decisive rate-cut measures.

BRICS Boom

The challenges facing the U.S. dollar are not confined to domestic issues. An increasing number of countries actively seek to decouple their economies from the dollar, viewing it as a liability rather than an asset. This shift is driven by mismanagement of the dollar through over-weaponization via sanctions and reckless spending, exemplified by the soaring national debt.

The BRICS nations – an increasingly tighter collection of growing economies – stand at the forefront of this de-dollarization movement. Representing 45% of the world’s population, this economic block is quickly turning from a thorn in the side of the dollar to the biggest threat to USD hegemony. Most recently, Turkey expressed interest in joining BRICS, highlighting the group’s expanding influence and appeal.

[BRICS] expansion is going to be catastrophic for the dollar.

–SBC Founder Eric Sepanek

The flip side of this shift away from the dollar is a rush into physical gold. Central banks broke records in the first half of 2024, following a non-stop binge between 2022 and 2023. China, the block’s de facto ringleader, recently implemented gold-buying quotas. These moves into gold are intended to act as a reliable foundation in lieu of the dollar.

“Scary” Policy Proposals

Last-minute Democratic presidential nominee Kamala Harris has received widespread criticism for her controversial tax proposals. Namely, the current vice president’s plan to tax unrealized gains has alarmed investors who are scrambling to safeguard their wealth from these unprecedented and constitutionally questionable policies.

The proposal has sparked backlash, as mainstream publications have called the plan “dumb” and “scary.” This aligns with Harris’ previous comments about hiking the long-term capital gains tax to 28%. Regardless, these proposals have more people thinking about financial protection and privacy, not only growth.

Time to Sell Gold?

Gold prices saw a minor pullback last week after a record-breaking rally, but the yellow metal has quickly rebounded, now holding firm above the $2,500/oz mark. The brief dip left some investors questioning whether it was the right time to sell. However, a broader view shows that the underlying factors driving gold’s rise remain firmly in place.

When you look around at what’s going on in the world right now, it would be a hard time to say, ‘I want to sell my lifeboat right now.’

–Sr. Precious Metals Advisor Steve

To learn more about which gold and silver products offer the greatest privacy, profit, and protection, request our FREE Investor Grade Coins Report.

The U.S. dollar (USD) is under threat from various fronts. Stock market losses, bearish unemployment numbers, and impending rate cuts rattle the domestic economy. From abroad, the growing coalition of BRICS nations challenges USD dominance.

In this week’s The Gold Spot, Scottsdale Bullion & Coin Founder Eric Sepanek and Sr. Precious Metals Advisor Steve Rand discuss how the economy is cooling, the growing de-dollarization block, and the importance of financial privacy.

Slowing Economy

Job openings dropped to the lowest level in over three years, according to a report from the Labor Department. The openings fell more than 5% below expectations, undermining the incumbent administration’s reassurances that the economy remains strong. This decline follows significant layoffs, particularly in the tech sector, as companies grapple with broad economic troubles.

These employment challenges have also been mirrored in Wall Street’s recent performance, with significant losses earlier this week. NVIDIA, often seen as a bellwether for the broader stock market, experienced the largest single-day loss of any U.S. company. The S&P 500 has already seen consecutive losses, reversing its record-setting growth earlier this year. Global markets have followed suit, with notable declines in Japan and Europe.

Get More Out of Your Gold & Silver Investments

Learn How

These weaknesses increase the likelihood that the Federal Reserve may adopt a more aggressive approach to cutting interest rates, which could weaken the dollar quicker than anticipated. Fed Chair Jerome Powell has made it clear that slashes are incoming, but investors are holding their breath in anticipation regarding the pace of those cuts. Generally, a declining economy triggers more decisive rate-cut measures.

BRICS Boom

The challenges facing the U.S. dollar are not confined to domestic issues. An increasing number of countries actively seek to decouple their economies from the dollar, viewing it as a liability rather than an asset. This shift is driven by mismanagement of the dollar through over-weaponization via sanctions and reckless spending, exemplified by the soaring national debt.

The BRICS nations – an increasingly tighter collection of growing economies – stand at the forefront of this de-dollarization movement. Representing 45% of the world’s population, this economic block is quickly turning from a thorn in the side of the dollar to the biggest threat to USD hegemony. Most recently, Turkey expressed interest in joining BRICS, highlighting the group’s expanding influence and appeal.

[BRICS] expansion is going to be catastrophic for the dollar.

–SBC Founder Eric Sepanek

The flip side of this shift away from the dollar is a rush into physical gold. Central banks broke records in the first half of 2024, following a non-stop binge between 2022 and 2023. China, the block’s de facto ringleader, recently implemented gold-buying quotas. These moves into gold are intended to act as a reliable foundation in lieu of the dollar.

“Scary” Policy Proposals

Last-minute Democratic presidential nominee Kamala Harris has received widespread criticism for her controversial tax proposals. Namely, the current vice president’s plan to tax unrealized gains has alarmed investors who are scrambling to safeguard their wealth from these unprecedented and constitutionally questionable policies.

The proposal has sparked backlash, as mainstream publications have called the plan “dumb” and “scary.” This aligns with Harris’ previous comments about hiking the long-term capital gains tax to 28%. Regardless, these proposals have more people thinking about financial protection and privacy, not only growth.

Time to Sell Gold?

Gold prices saw a minor pullback last week after a record-breaking rally, but the yellow metal has quickly rebounded, now holding firm above the $2,500/oz mark. The brief dip left some investors questioning whether it was the right time to sell. However, a broader view shows that the underlying factors driving gold’s rise remain firmly in place.

When you look around at what’s going on in the world right now, it would be a hard time to say, ‘I want to sell my lifeboat right now.’

–Sr. Precious Metals Advisor Steve

To learn more about which gold and silver products offer the greatest privacy, profit, and protection, request our FREE Investor Grade Coins Report.

Gold boosts on the August jobs report after rallying early Friday as it heads for a weekly gain as investors anticipate a Fed rate cut.

Non-farm payrolls grew by 142,000 in August per this morning’s report from the Labor Department’s Bureau of Labor Statistics. Economists polled by Dow Jones expected a gain of 161,000. However, the unemployment rate edged down to 4.2%, in line with expectations. DG spot gold rose $11.80 on the news, while U.S. gold futures firmed 0.4% to $2,552.80, but then lost some ground on profit-taking.

Traders were looking to the monthly U.S. jobs report for confirmation of the Federal Reserve’s plans to cut interest rates later this month and for signals on the size of the reduction.

The private payrolls report from ADP Employment Report showed the smallest increase in three and a half years in data released Thursday. Separately, weekly U.S. initial jobless claims data for last week showed the biggest drop in almost a year.

Front-month gold futures rose 0.7% Thursday to settle at $2,543.10 an ounce on Comex. The most-active December contract advanced 0.6% so far this week. U.S. financial markets were closed Monday for the Labor Day holiday. Bullion gained 2.2% in August after increasing 5.7% in July, its biggest monthly gain since March. Gold fell 0.3% in June. The metal rose 13% in 2023. The December contract is currently up $0.20 (+0.01%) an ounce to $2543.30 and the DG spot price is $2513.10.

The U.S. jobs report is important because the Fed closely looks at both labor market and inflation data when crafting monetary policy. The Fed’s favorite inflation measure, the personal consumption expenditures price index, came in in line with expectations last week with July data.

Rate cuts are considered bullish for gold because they make it a more attractive investment than some other assets.

The private payrolls report from ADP missed estimates Thursday, showing a gain of just 99,000 jobs last month. Economists had forecast 140,000. New applications for unemployment benefits fell 17,000 last week to 233,000 in separate data from the Labor Department.

The Beige Book, the economic report from the Fed’s 12 regional banks, on Wednesday indicated that economic activity was flat or declining in most regions of the country. Meanwhile, U.S. factory orders in July beat expectations, separate data showed Wednesday.

Investors tracked by the CME FedWatch Tool unanimously expect the Fed to begin interest rate cuts at the central bank’s next policy meeting ending Sept. 18. About 55% expect a 25 basis point cut, while the rest anticipate a 50 basis point cut. The Fed has kept interest rates at 5.25% to 5.50% for a year after raising them by 5.25 percentage points since March 2022 to rein in inflation.

Front-month silver futures rose 1.9% Thursday to $29.10 an ounce on Comex, but the December contract slipped 0.2% so far this week. Silver gained 0.7% last month after dropping 2.1% in July and falling 2.9% in June. It ticked up 0.2% in 2023. The December contract is currently up $0.096 (+0.33%) an ounce to $29.195 and the DG spot price is $28.86.

Spot palladium increased 1.1% Thursday to $953.00 an ounce. It’s down 2.7% so far this week. Palladium increased 3.2% last month after decreasing 4.3% in July and gaining 8.1% in June. Palladium plummeted 38% last year. The DG spot price is currently up $8.10 an ounce to $963.00.

Spot platinum rallied 2.4% Thursday to $933.60 an ounce. It increased 0.2% so far this week. Platinum slid 5.2% in August after losing 2.1% in July and falling 3.7% in June. Platinum dropped 6.8% in 2023. The current DG spot price is up $5.40 an ounce to $939.70.

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 boosts on the August jobs report after rallying early Friday as it heads for a weekly gain as investors anticipate a Fed rate cut.

Non-farm payrolls grew by 142,000 in August per this morning’s report from the Labor Department’s Bureau of Labor Statistics. Economists polled by Dow Jones expected a gain of 161,000. However, the unemployment rate edged down to 4.2%, in line with expectations. DG spot gold rose $11.80 on the news, while U.S. gold futures firmed 0.4% to $2,552.80, but then lost some ground on profit-taking.

Traders were looking to the monthly U.S. jobs report for confirmation of the Federal Reserve’s plans to cut interest rates later this month and for signals on the size of the reduction.

The private payrolls report from ADP Employment Report showed the smallest increase in three and a half years in data released Thursday. Separately, weekly U.S. initial jobless claims data for last week showed the biggest drop in almost a year.

Front-month gold futures rose 0.7% Thursday to settle at $2,543.10 an ounce on Comex. The most-active December contract advanced 0.6% so far this week. U.S. financial markets were closed Monday for the Labor Day holiday. Bullion gained 2.2% in August after increasing 5.7% in July, its biggest monthly gain since March. Gold fell 0.3% in June. The metal rose 13% in 2023. The December contract is currently up $0.20 (+0.01%) an ounce to $2543.30 and the DG spot price is $2513.10.

The U.S. jobs report is important because the Fed closely looks at both labor market and inflation data when crafting monetary policy. The Fed’s favorite inflation measure, the personal consumption expenditures price index, came in in line with expectations last week with July data.

Rate cuts are considered bullish for gold because they make it a more attractive investment than some other assets.

The private payrolls report from ADP missed estimates Thursday, showing a gain of just 99,000 jobs last month. Economists had forecast 140,000. New applications for unemployment benefits fell 17,000 last week to 233,000 in separate data from the Labor Department.

The Beige Book, the economic report from the Fed’s 12 regional banks, on Wednesday indicated that economic activity was flat or declining in most regions of the country. Meanwhile, U.S. factory orders in July beat expectations, separate data showed Wednesday.

Investors tracked by the CME FedWatch Tool unanimously expect the Fed to begin interest rate cuts at the central bank’s next policy meeting ending Sept. 18. About 55% expect a 25 basis point cut, while the rest anticipate a 50 basis point cut. The Fed has kept interest rates at 5.25% to 5.50% for a year after raising them by 5.25 percentage points since March 2022 to rein in inflation.

Front-month silver futures rose 1.9% Thursday to $29.10 an ounce on Comex, but the December contract slipped 0.2% so far this week. Silver gained 0.7% last month after dropping 2.1% in July and falling 2.9% in June. It ticked up 0.2% in 2023. The December contract is currently up $0.096 (+0.33%) an ounce to $29.195 and the DG spot price is $28.86.

Spot palladium increased 1.1% Thursday to $953.00 an ounce. It’s down 2.7% so far this week. Palladium increased 3.2% last month after decreasing 4.3% in July and gaining 8.1% in June. Palladium plummeted 38% last year. The DG spot price is currently up $8.10 an ounce to $963.00.

Spot platinum rallied 2.4% Thursday to $933.60 an ounce. It increased 0.2% so far this week. Platinum slid 5.2% in August after losing 2.1% in July and falling 3.7% in June. Platinum dropped 6.8% in 2023. The current DG spot price is up $5.40 an ounce to $939.70.

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.

Russia and China have hit a crucial milestone in trying to break free from the US dollar by conducting 90% of trade in local currencies. This development deals a serious blow to the stability of the world economy and the greenback upon which it rests. This economic upheaval is pushing countries and investors into gold and other precious metals.

The Numbers

• More than 90% of trade between Russia and China is completed in rubles and yuan.
• At the start of 2024, President Biden slapped Moscow with 500 new sanctions.
• Russia holds over 2,299/oz of gold reserves.
• China’s gold reserves exceed 2,000 tons, following 18 months of gold buying.
• Collectively, the BRICS nations account for 16% of gold reserves.
• Central bank gold demand broke records in the first half of 2024.

Why Investors Should Care

The rising share of local currencies in Russia-China bilateral trade shows that de-dollarization continues apace. This breakthrough also signals to all countries that economic stability without the greenback is achievable and viable. Every step away from a dollar-dominant economy means a weaker currency, slower economic growth, higher inflation, and diminished buying power for American investors.

Market Impact

The US dollar became the world reserve currency following the abandonment of the gold standard. Now, a slew of countries — primarily the BRICS nations — are challenging the greenback’s status. A crippling combination of rampant national debt, irresponsible fiscal policies, and the weaponization of the dollar is motivating governments to ditch the dollar. The severe reduction of USD in Russia-China trade shakes the foundation of the dollar and, in turn, the global economy. The flip side of the dollar dump is a modern-day gold rush as central banks top up their reserves as market uncertainty mounts.

Expert Insights

“There has been a concerted move by the BRICS countries to become more independent in international trade…away from the US dollar towards their own currencies and gold,” explains Tim Murphy, Precious Metals Advisor at Scottsdale Bullion & Coin.

As the biggest economy in BRICS, China is often seen as the economic group’s ringleader. Underscoring the country’s true motivation, fellow SBC Precious Metals Advisor John Karow explains, “China…wants the Yuan to be broken free of the dollar.”

An analysis of Russia-China trade policy by the Atlantic Council came to a similar conclusion, saying “Beijing has a longer-term goal of competing with the dollar and of advancing the yuan as an international currency.”

Unfortunately, America’s economic incompetence and weakening geopolitical muscle have contributed to the problem. Karow continues, “The US government…has opened the door for China, and they’ve walked right through.”

What’s Behind the News?

The concerted effort between Russia and China to snub the US dollar has been years in the making. Both countries have been subject to constrictive sanctions, spurring an attempt to circumnavigate Western influence. This largely successful endeavor has caught the attention of dozens of nations who want more economic independence. The BRICS consortium is a direct reflection of this shift.

Future Outlook

Looking ahead, the de-dollarization trend is likely to continue as countries — US friends and foes alike — pursue economic autonomy. The BRICS group is adding new members with dozens eager to join. The World Gold Council expects central banks’ gold demand to carry on, which is expected to push prices even higher. In fact, many experts are increasing their gold price predictions.

Actionable Takeaways

• Diversify Your Portfolio — Consider increasing your allocation to gold and silver to hedge against dollar devaluation and economic uncertainty.
• Monitor Global Trends — Keep an eye out for major developments that could impact the dollar’s strength and the world economy.
• Consult With an Expert — Talk with an advisor to determine which precious metals investment strategy aligns with your goals and current market conditions.

Want to Learn More About Gold?

The precious metals advisors at SBC Gold are happy to answer all your questions. You’ll get personalized advice to meet your unique goals and needs. Contact us today by calling toll-free at 1-888-812-9892 or using our live chat function.

Russia and China have hit a crucial milestone in trying to break free from the US dollar by conducting 90% of trade in local currencies. This development deals a serious blow to the stability of the world economy and the greenback upon which it rests. This economic upheaval is pushing countries and investors into gold and other precious metals.

The Numbers

• More than 90% of trade between Russia and China is completed in rubles and yuan.
• At the start of 2024, President Biden slapped Moscow with 500 new sanctions.
• Russia holds over 2,299/oz of gold reserves.
• China’s gold reserves exceed 2,000 tons, following 18 months of gold buying.
• Collectively, the BRICS nations account for 16% of gold reserves.
• Central bank gold demand broke records in the first half of 2024.

Why Investors Should Care

The rising share of local currencies in Russia-China bilateral trade shows that de-dollarization continues apace. This breakthrough also signals to all countries that economic stability without the greenback is achievable and viable. Every step away from a dollar-dominant economy means a weaker currency, slower economic growth, higher inflation, and diminished buying power for American investors.

Market Impact

The US dollar became the world reserve currency following the abandonment of the gold standard. Now, a slew of countries — primarily the BRICS nations — are challenging the greenback’s status. A crippling combination of rampant national debt, irresponsible fiscal policies, and the weaponization of the dollar is motivating governments to ditch the dollar. The severe reduction of USD in Russia-China trade shakes the foundation of the dollar and, in turn, the global economy. The flip side of the dollar dump is a modern-day gold rush as central banks top up their reserves as market uncertainty mounts.

Expert Insights

“There has been a concerted move by the BRICS countries to become more independent in international trade…away from the US dollar towards their own currencies and gold,” explains Tim Murphy, Precious Metals Advisor at Scottsdale Bullion & Coin.

As the biggest economy in BRICS, China is often seen as the economic group’s ringleader. Underscoring the country’s true motivation, fellow SBC Precious Metals Advisor John Karow explains, “China…wants the Yuan to be broken free of the dollar.”

An analysis of Russia-China trade policy by the Atlantic Council came to a similar conclusion, saying “Beijing has a longer-term goal of competing with the dollar and of advancing the yuan as an international currency.”

Unfortunately, America’s economic incompetence and weakening geopolitical muscle have contributed to the problem. Karow continues, “The US government…has opened the door for China, and they’ve walked right through.”

What’s Behind the News?

The concerted effort between Russia and China to snub the US dollar has been years in the making. Both countries have been subject to constrictive sanctions, spurring an attempt to circumnavigate Western influence. This largely successful endeavor has caught the attention of dozens of nations who want more economic independence. The BRICS consortium is a direct reflection of this shift.

Future Outlook

Looking ahead, the de-dollarization trend is likely to continue as countries — US friends and foes alike — pursue economic autonomy. The BRICS group is adding new members with dozens eager to join. The World Gold Council expects central banks’ gold demand to carry on, which is expected to push prices even higher. In fact, many experts are increasing their gold price predictions.

Actionable Takeaways

• Diversify Your Portfolio — Consider increasing your allocation to gold and silver to hedge against dollar devaluation and economic uncertainty.
• Monitor Global Trends — Keep an eye out for major developments that could impact the dollar’s strength and the world economy.
• Consult With an Expert — Talk with an advisor to determine which precious metals investment strategy aligns with your goals and current market conditions.

Want to Learn More About Gold?

The precious metals advisors at SBC Gold are happy to answer all your questions. You’ll get personalized advice to meet your unique goals and needs. Contact us today by calling toll-free at 1-888-812-9892 or using our live chat function.

The rise of cryptocurrencies has sparked an ongoing debate between Bitcoin and gold as safe-haven assets. That conversation has only intensified as investors prioritize wealth preservation amidst extreme market volatility and uncertainty. The World Gold Council (WGC) is the latest authority to push back against the comparison of Bitcoin as “digital gold”, pointing to the digital coin’s volatility, and speculative nature.

The Numbers

• 195 countries have gold reserves, despite operating on fiat currency systems.
• Zero central banks have adopted Bitcoin as part of their official reserves.
• Collectively, governments hold 32,000 tons of gold.
• Central bank gold demand broke records in 2022, 2023, and H1 of 2024.
• Bitcoin’s average daily volatility is around four times higher than gold’s.

Why Investors Should Care

Many people automatically assume Bitcoin achieves the same or even better inflation-hedge protection than the yellow metal. Often, this assumption is based solely on Bitcoin’s dramatic price movements rather than a thorough analysis of the underlying performance. The WGC’s in-depth study reveals that investors may be exposing their hard-earned money to significant risk by favoring Bitcoin over gold for long-term stability and protection against economic pressures.

Market Impact

Analysts at the WGC compared the performances of Bitcoin and gold through bouts of economic downturn. Their study revealed that gold’s daily average volatility (measured over 5 years) is a minor 15% while Bitcoin’s sits near a staggering 60%.

Source: World Gold Council

Additionally, researchers found that Bitcoin had a positive correlation with the stock market between August 2019 and August 2024 – the opposite of what a safe-haven asset is supposed to do.

Sources: Bloomberg, World Gold Council

Expert Insights

Joseph Cavatoni and John Reade, Senior Market Strategists at the World Gold Council, emphasized, “Gold has long demonstrated its role as a safe haven asset, which is supported through clear use cases by central banks, long-term investment holdings and global savings.”

On the flipside, the duo continues, “Bitcoin has not demonstrated the same characteristics as gold during significant market drawdowns.”

They conclude by saying, “[G]old and Bitcoin…serve fundamentally different purposes in investment strategies.”

JP Morgan CEO Jamie Dimon has aired his more pessimistic views about the cryptocurrency, calling it a “Ponzi scheme” and a “fraud” that has “no hope.”

Eric Sepanek, the founder of Scottsdale Bullion & Coin, highlights that “People buy gold for security…[because it’s] always been a reliable store of value.”

In comparison to Bitcoin and other assets, “Gold and silver are going to be better stores of value for what we’re about to go through.”

What’s Behind the News?

The conflation between Bitcoin and gold has gained significant traction over the years as cryptocurrencies have recorded impressive gains, usually followed by equal or larger losses. The comparison is heating up as economic uncertainty mounts, prompting investors to look for a safe place to park their wealth. Various researchers and market experts are pushing back against Bitcoin’s status as “digital gold” given its comparatively unreliable performance.

Future Outlook

Bitcoin’s volatility and speculative nature result in schizophrenic price forecasts with some investors predicting a $1 million Bitcoin and others warning of an imminent crash to zero.

The fundamentals behind gold lead to a much broader consensus as Wall Street, major financial institutions, and central banks predict higher prices.

Following gold’s record-setting rally, experts started increasing their price predictions for this year and beyond.

This anticipated surge in gold prices is due to inflationary pressures, worsening geopolitical threats, and increasing economic uncertainty, highlighting gold’s status as the go-to safe-haven asset.

Actionable Takeaways

• Match Investments With Goals — Gold and Bitcoin have different investment purposes that investors should consider in line with their financial goals.
• Prioritize Physical Gold – Central banks and retail investors are diving into physical gold – as opposed to paper gold – because of its inherent value and physical nature.
• Talk With an Advisor – Consult a financial advisor to tailor your investment strategy based on your risk tolerance and long-term financial goals.

👉 Related Read: Why Investing in Gold & Silver is NOT a Cookie-Cutter Approach

Want to Learn More About Gold?

The precious metals advisors at Scottsdale Bullion & Coin are eager to help! Contact us today by calling toll-free at 1-888-812-9892 or using our live chat function.

The rise of cryptocurrencies has sparked an ongoing debate between Bitcoin and gold as safe-haven assets. That conversation has only intensified as investors prioritize wealth preservation amidst extreme market volatility and uncertainty. The World Gold Council (WGC) is the latest authority to push back against the comparison of Bitcoin as “digital gold”, pointing to the digital coin’s volatility, and speculative nature.

The Numbers

• 195 countries have gold reserves, despite operating on fiat currency systems.
• Zero central banks have adopted Bitcoin as part of their official reserves.
• Collectively, governments hold 32,000 tons of gold.
• Central bank gold demand broke records in 2022, 2023, and H1 of 2024.
• Bitcoin’s average daily volatility is around four times higher than gold’s.

Why Investors Should Care

Many people automatically assume Bitcoin achieves the same or even better inflation-hedge protection than the yellow metal. Often, this assumption is based solely on Bitcoin’s dramatic price movements rather than a thorough analysis of the underlying performance. The WGC’s in-depth study reveals that investors may be exposing their hard-earned money to significant risk by favoring Bitcoin over gold for long-term stability and protection against economic pressures.

Market Impact

Analysts at the WGC compared the performances of Bitcoin and gold through bouts of economic downturn. Their study revealed that gold’s daily average volatility (measured over 5 years) is a minor 15% while Bitcoin’s sits near a staggering 60%.

Source: World Gold Council

Additionally, researchers found that Bitcoin had a positive correlation with the stock market between August 2019 and August 2024 – the opposite of what a safe-haven asset is supposed to do.

Sources: Bloomberg, World Gold Council

Expert Insights

Joseph Cavatoni and John Reade, Senior Market Strategists at the World Gold Council, emphasized, “Gold has long demonstrated its role as a safe haven asset, which is supported through clear use cases by central banks, long-term investment holdings and global savings.”

On the flipside, the duo continues, “Bitcoin has not demonstrated the same characteristics as gold during significant market drawdowns.”

They conclude by saying, “[G]old and Bitcoin…serve fundamentally different purposes in investment strategies.”

JP Morgan CEO Jamie Dimon has aired his more pessimistic views about the cryptocurrency, calling it a “Ponzi scheme” and a “fraud” that has “no hope.”

Eric Sepanek, the founder of Scottsdale Bullion & Coin, highlights that “People buy gold for security…[because it’s] always been a reliable store of value.”

In comparison to Bitcoin and other assets, “Gold and silver are going to be better stores of value for what we’re about to go through.”

What’s Behind the News?

The conflation between Bitcoin and gold has gained significant traction over the years as cryptocurrencies have recorded impressive gains, usually followed by equal or larger losses. The comparison is heating up as economic uncertainty mounts, prompting investors to look for a safe place to park their wealth. Various researchers and market experts are pushing back against Bitcoin’s status as “digital gold” given its comparatively unreliable performance.

Future Outlook

Bitcoin’s volatility and speculative nature result in schizophrenic price forecasts with some investors predicting a $1 million Bitcoin and others warning of an imminent crash to zero.

The fundamentals behind gold lead to a much broader consensus as Wall Street, major financial institutions, and central banks predict higher prices.

Following gold’s record-setting rally, experts started increasing their price predictions for this year and beyond.

This anticipated surge in gold prices is due to inflationary pressures, worsening geopolitical threats, and increasing economic uncertainty, highlighting gold’s status as the go-to safe-haven asset.

Actionable Takeaways

• Match Investments With Goals — Gold and Bitcoin have different investment purposes that investors should consider in line with their financial goals.
• Prioritize Physical Gold – Central banks and retail investors are diving into physical gold – as opposed to paper gold – because of its inherent value and physical nature.
• Talk With an Advisor – Consult a financial advisor to tailor your investment strategy based on your risk tolerance and long-term financial goals.

👉 Related Read: Why Investing in Gold & Silver is NOT a Cookie-Cutter Approach

Want to Learn More About Gold?

The precious metals advisors at Scottsdale Bullion & Coin are eager to help! Contact us today by calling toll-free at 1-888-812-9892 or using our live chat function.

Gold steady ahead of jobs reports after experiencing an early morning dip. Investors await the release of some of the last major economic indicators due out before the Federal Reserve policy meeting later this month. Gold briefly lost ground early Wednesday due to an equity sell-off. DG spot gold fell 0.2% to $2,476.14 per ounce, hitting its lowest since Aug. 22nd, while gold futures were also down 0.2% to $2,519.10. Bulls quickly stepped in to buy the dip, reclaiming most of the lost ground.

The closely watched U.S. monthly employment report for August comes out Friday. Before that, the ADP Employment Report on private payrolls for August and the weekly U.S. initial jobless claims data for last week are scheduled for release Thursday. The Fed’s favorite inflation measure, the personal consumption expenditures price index, came in in line with expectations last week with July data. The Fed closely looks at both labor market and inflation data when crafting monetary policy.

U.S. manufacturing data for August showed a moderate contraction in data released Tuesday. Wednesday brings the release of the Beige Book, the economic report from the Fed’s 12 regional banks, plus job openings and factory orders data.

Front-month gold futures fell 0.2% Tuesday to settle at $2,523.00 an ounce on Comex. The most-active December contract fell 0.7% last week. U.S. financial markets were closed Monday for the Labor Day holiday. Bullion gained 2.2% in August after increasing 5.7% in July, its biggest monthly gain since March. Gold fell 0.3% in June. The metal rose 13% in 2023. The December contract is currently down $3.30 (-0.13%) an ounce to $2519.70 and the DG spot price is $2485.50.

The central bank is widely expected to begin interest rate cuts this month amid positive inflation data and signs that the labor market is weakening. Rate cuts are considered bullish for gold because they make it a more attractive investment than some other assets.

Investors tracked by the CME FedWatch Tool unanimously expect the Fed to begin interest rate cuts at the central bank’s next policy meeting ending Sept. 18. About 59% expect a 25 basis point cut, while the rest anticipate a 50 basis point cut. The Fed has kept interest rates at 5.25% to 5.50% for a year after raising them by 5.25 percentage points since March 2022 to rein in inflation.

Core PCE, which includes volatile food and energy prices, increased 0.2% in July from June and was up 2.6% from a year earlier, better than the 2.7% estimate. The Fed has long had a 2% target for inflation. Including food and energy prices, headline PCE rose 0.2% on the month and 2.5% for the year, in line with expectations.

Personal income increased 0.3% in July, slightly higher than the 0.2% estimate. Consumer spending grew 0.5%, in line with forecasts.

Front-month silver futures dropped 2.7% Tuesday to $28.34 an ounce on Comex. The December contract fell 3.7% last week. Silver gained 0.7% last month after dropping 2.1% in July and falling 2.9% in June. It ticked up 0.2% in 2023. The December contract is currently up $0.136 (+0.48%) an ounce to $28.480 and the DG spot price is $28.15.

Spot palladium declined 2.7% Tuesday to $952.50 an ounce. It rose 1.4% last week. Palladium increased 3.2% last month after decreasing 4.3% in July and gaining 8.1% in June. Palladium plummeted 38% last year. The DG spot price is currently down $4.80 an ounce to $946.50.

Spot platinum fell 1.7% Tuesday to $915.50 an ounce. It decreased 3.7% last week. Platinum slid 5.2% in August after losing 2.1% in July and falling 3.7% in June. Platinum dropped 6.8% in 2023. Currently, the DG spot price is down $3.90 an ounce to $910.00.

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 steady ahead of jobs reports after experiencing an early morning dip. Investors await the release of some of the last major economic indicators due out before the Federal Reserve policy meeting later this month. Gold briefly lost ground early Wednesday due to an equity sell-off. DG spot gold fell 0.2% to $2,476.14 per ounce, hitting its lowest since Aug. 22nd, while gold futures were also down 0.2% to $2,519.10. Bulls quickly stepped in to buy the dip, reclaiming most of the lost ground.

The closely watched U.S. monthly employment report for August comes out Friday. Before that, the ADP Employment Report on private payrolls for August and the weekly U.S. initial jobless claims data for last week are scheduled for release Thursday. The Fed’s favorite inflation measure, the personal consumption expenditures price index, came in in line with expectations last week with July data. The Fed closely looks at both labor market and inflation data when crafting monetary policy.

U.S. manufacturing data for August showed a moderate contraction in data released Tuesday. Wednesday brings the release of the Beige Book, the economic report from the Fed’s 12 regional banks, plus job openings and factory orders data.

Front-month gold futures fell 0.2% Tuesday to settle at $2,523.00 an ounce on Comex. The most-active December contract fell 0.7% last week. U.S. financial markets were closed Monday for the Labor Day holiday. Bullion gained 2.2% in August after increasing 5.7% in July, its biggest monthly gain since March. Gold fell 0.3% in June. The metal rose 13% in 2023. The December contract is currently down $3.30 (-0.13%) an ounce to $2519.70 and the DG spot price is $2485.50.

The central bank is widely expected to begin interest rate cuts this month amid positive inflation data and signs that the labor market is weakening. Rate cuts are considered bullish for gold because they make it a more attractive investment than some other assets.

Investors tracked by the CME FedWatch Tool unanimously expect the Fed to begin interest rate cuts at the central bank’s next policy meeting ending Sept. 18. About 59% expect a 25 basis point cut, while the rest anticipate a 50 basis point cut. The Fed has kept interest rates at 5.25% to 5.50% for a year after raising them by 5.25 percentage points since March 2022 to rein in inflation.

Core PCE, which includes volatile food and energy prices, increased 0.2% in July from June and was up 2.6% from a year earlier, better than the 2.7% estimate. The Fed has long had a 2% target for inflation. Including food and energy prices, headline PCE rose 0.2% on the month and 2.5% for the year, in line with expectations.

Personal income increased 0.3% in July, slightly higher than the 0.2% estimate. Consumer spending grew 0.5%, in line with forecasts.

Front-month silver futures dropped 2.7% Tuesday to $28.34 an ounce on Comex. The December contract fell 3.7% last week. Silver gained 0.7% last month after dropping 2.1% in July and falling 2.9% in June. It ticked up 0.2% in 2023. The December contract is currently up $0.136 (+0.48%) an ounce to $28.480 and the DG spot price is $28.15.

Spot palladium declined 2.7% Tuesday to $952.50 an ounce. It rose 1.4% last week. Palladium increased 3.2% last month after decreasing 4.3% in July and gaining 8.1% in June. Palladium plummeted 38% last year. The DG spot price is currently down $4.80 an ounce to $946.50.

Spot platinum fell 1.7% Tuesday to $915.50 an ounce. It decreased 3.7% last week. Platinum slid 5.2% in August after losing 2.1% in July and falling 3.7% in June. Platinum dropped 6.8% in 2023. Currently, the DG spot price is down $3.90 an ounce to $910.00.

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.

September 4, 2024

There are many problems with the calculation methodology of the Consumer Price Index (CPI) and with the whole concept of coming up with a single number to represent the purchasing power of money. Interestingly, however, if we calculate the inflation-adjusted (‘real’) gold price by dividing the nominal US$ gold price by the US CPI, which is what we have done on the following monthly chart, we see that the result has peaked at around the same level multiple times over the past 50 years and that the current value is around this level. Does this imply that gold’s upside is capped?

It adds to the reasons that we should be cautious about gold’s short-term prospects. These reasons include the size of the speculator net-long position in gold futures, the August-September cyclical turning-point window for the gold mining sector, the likelihood of a reduced pace of US federal government spending during the months following the November-2024 election, the fact that gold’s true fundamentals are not definitively bullish, the high level of the gold/GNX ratio (gold is expensive relative to commodities in general), the extent to which the financial markets have discounted Fed rate cuts (four 0.25% Fed rate cuts are priced-in for 2024, creating the potential for a negative surprise from the Fed), and the high combined value of gold and the S&P500 Index relative to the US money supply. However, we expect that within the next 12 months the gold/CPI ratio will move well into new high territory, mainly because:

1) The US economy finally will enter the recession that has been anticipated for almost two years and that has been delayed by aggressive government spending, leading to efforts by both the Federal Reserve and the federal government to stimulate economic activity.

2) Despite the rise in government bond yields over the past few years, it is clear that neither of the major US political parties nor their presidential candidates have any concern about the level of federal government indebtedness. Putting it another way, currently there is no political will to reduce government spending. On the contrary, both presidential candidates are going down the well-worn path of trying to buy the votes of influential groups while ‘turning a blind eye’ to the government’s debts and deficits.

3) Using our own method of adjusting for the effects of inflation*, which generally will not be accurate in the short-term but should be approximately correct over periods of several years or more, the current ‘real’ gold price is a long way below its 1980 and 2011 highs (our method indicates inflation-adjusted highs of around US$5000/oz in 1980 and US$3400/oz in 2011). Refer to the following monthly chart for more detail.

So, while the proximity of the gold/CPI ratio to its long-term resistance adds to the short-term risk, this resistance probably won’t act as a ceiling for much longer.

*The theory that we apply can be summarised as follows: The percentage reduction in a currency’s purchasing power should, over the long-term, be roughly equal to the percentage increase in its supply minus the percentage increase in the combination of population and productivity.

About Jacqui

September 4, 2024

There are many problems with the calculation methodology of the Consumer Price Index (CPI) and with the whole concept of coming up with a single number to represent the purchasing power of money. Interestingly, however, if we calculate the inflation-adjusted (‘real’) gold price by dividing the nominal US$ gold price by the US CPI, which is what we have done on the following monthly chart, we see that the result has peaked at around the same level multiple times over the past 50 years and that the current value is around this level. Does this imply that gold’s upside is capped?

It adds to the reasons that we should be cautious about gold’s short-term prospects. These reasons include the size of the speculator net-long position in gold futures, the August-September cyclical turning-point window for the gold mining sector, the likelihood of a reduced pace of US federal government spending during the months following the November-2024 election, the fact that gold’s true fundamentals are not definitively bullish, the high level of the gold/GNX ratio (gold is expensive relative to commodities in general), the extent to which the financial markets have discounted Fed rate cuts (four 0.25% Fed rate cuts are priced-in for 2024, creating the potential for a negative surprise from the Fed), and the high combined value of gold and the S&P500 Index relative to the US money supply. However, we expect that within the next 12 months the gold/CPI ratio will move well into new high territory, mainly because:

1) The US economy finally will enter the recession that has been anticipated for almost two years and that has been delayed by aggressive government spending, leading to efforts by both the Federal Reserve and the federal government to stimulate economic activity.

2) Despite the rise in government bond yields over the past few years, it is clear that neither of the major US political parties nor their presidential candidates have any concern about the level of federal government indebtedness. Putting it another way, currently there is no political will to reduce government spending. On the contrary, both presidential candidates are going down the well-worn path of trying to buy the votes of influential groups while ‘turning a blind eye’ to the government’s debts and deficits.

3) Using our own method of adjusting for the effects of inflation*, which generally will not be accurate in the short-term but should be approximately correct over periods of several years or more, the current ‘real’ gold price is a long way below its 1980 and 2011 highs (our method indicates inflation-adjusted highs of around US$5000/oz in 1980 and US$3400/oz in 2011). Refer to the following monthly chart for more detail.

So, while the proximity of the gold/CPI ratio to its long-term resistance adds to the short-term risk, this resistance probably won’t act as a ceiling for much longer.

*The theory that we apply can be summarised as follows: The percentage reduction in a currency’s purchasing power should, over the long-term, be roughly equal to the percentage increase in its supply minus the percentage increase in the combination of population and productivity.

About Jacqui

The trend of de-dollarization is gaining steam as global powers successfully limit their reliance on the US dollar in favor of local currencies. A study by the Brookings Institute highlights four major weaknesses threatening the dollar’s leading status including the dollar’s weaponization, national debt, the decreasing cost of currency exchange, and central bank digital currency development. At the same time, central banks are building a strong economic foundation with gold to support their shift away from the dollar.

The Numbers

• The U.S. dollar’s share of global reserves fell to 59% in early 2024, down from 71% in 1999.
• Non-traditional currencies account for 11% of global reserves, up from 2% in 1999.
• China uses the yuan to settle about 50% of its cross-border trade and investment.
• Yuan usage in cross-border payments with China increased from 0% to 20% between 2014 and 2021.
• Central bank gold demand broke records in 2022, 2023, and H1 of 2024.

Why Investors Should Care

As the world reserve currency, the greenback enjoys steady demand, relative stability, and long-term strength. These characteristics confer many advantages for American investors, including strong buying power, more stable savings, and a more reliable foundation for investments. However, the rise of de-dollarization is eroding these economic advantages as dollar demand wanes. The impending threat of currency devaluation and inflationary pressures are causing an exodus from traditional, dollar-backed investments into safe-haven assets as investors seek wealth preservation.

What’s Behind the News?

Brookings identified four primary challenges to the dollar’s reign in the world economy:

1. Economic Sanctions – The dollar’s weaponization through Western sanctions makes many countries wary of depending on it, especially China and Russia.
2. National Debt – The $35 national debt burden and the rising cost of paying it back calls the dollar’s stability and strength into question.
3. Exchange Technology – The dollar’s role as an exchange mechanism is challenged as technological improvements make it easier and safer than ever to exchange currencies.
4. CBDC – The USD risks falling behind foreign currencies which can advance through the adoption of CBDCs, decreasing reliance on the dollar.

Expert Insights

Researchers at the Brookings Institute warn that “the dollar could be dethroned” if immediate actions aren’t taken to slow the pace of de-dollarization.

The US-based think tank highlights America’s “capricious” and “unilateral” application of sanctions, suggesting the dollar’s weaponization could contribute to its downfall.

Researchers further stress the negative impact of national debt and governmental gridlock, saying “Further political instability could erode investor confidence in the dollar.”

Pointing to key advancements in currency-exchange technology, the group points out “[C]onverting…currencies to dollars, and vice versa, has been easier and cheaper than exchanging them for one another. But [countries] will soon no longer need to exchange their respective currencies for dollars to conduct trade cheaply.”

Damian White, Senior Precious Metals Advisor at Scottsdale Bullion and Coin, explains the real threat of a dollar downfall. “Currency collapses happen in slow motion at first. When the lack of confidence comes, it’s a waterfall effect and the currency collapses.”

Future Outlook

The obstacles to the dollar’s leadership are only getting more difficult to overcome as

economic, political, and geopolitical turmoil escalates. Many experts expect the greenback will gradually lose dominance in international reserves and trade. While the dollar loses its grip on the world economy, many see increased gold demand and higher prices. Even following a record-setting rally, several banks and economists are increasing their gold price predictions.

The trend of de-dollarization is gaining steam as global powers successfully limit their reliance on the US dollar in favor of local currencies. A study by the Brookings Institute highlights four major weaknesses threatening the dollar’s leading status including the dollar’s weaponization, national debt, the decreasing cost of currency exchange, and central bank digital currency development. At the same time, central banks are building a strong economic foundation with gold to support their shift away from the dollar.

The Numbers

• The U.S. dollar’s share of global reserves fell to 59% in early 2024, down from 71% in 1999.
• Non-traditional currencies account for 11% of global reserves, up from 2% in 1999.
• China uses the yuan to settle about 50% of its cross-border trade and investment.
• Yuan usage in cross-border payments with China increased from 0% to 20% between 2014 and 2021.
• Central bank gold demand broke records in 2022, 2023, and H1 of 2024.

Why Investors Should Care

As the world reserve currency, the greenback enjoys steady demand, relative stability, and long-term strength. These characteristics confer many advantages for American investors, including strong buying power, more stable savings, and a more reliable foundation for investments. However, the rise of de-dollarization is eroding these economic advantages as dollar demand wanes. The impending threat of currency devaluation and inflationary pressures are causing an exodus from traditional, dollar-backed investments into safe-haven assets as investors seek wealth preservation.

What’s Behind the News?

Brookings identified four primary challenges to the dollar’s reign in the world economy:

1. Economic Sanctions – The dollar’s weaponization through Western sanctions makes many countries wary of depending on it, especially China and Russia.
2. National Debt – The $35 national debt burden and the rising cost of paying it back calls the dollar’s stability and strength into question.
3. Exchange Technology – The dollar’s role as an exchange mechanism is challenged as technological improvements make it easier and safer than ever to exchange currencies.
4. CBDC – The USD risks falling behind foreign currencies which can advance through the adoption of CBDCs, decreasing reliance on the dollar.

Expert Insights

Researchers at the Brookings Institute warn that “the dollar could be dethroned” if immediate actions aren’t taken to slow the pace of de-dollarization.

The US-based think tank highlights America’s “capricious” and “unilateral” application of sanctions, suggesting the dollar’s weaponization could contribute to its downfall.

Researchers further stress the negative impact of national debt and governmental gridlock, saying “Further political instability could erode investor confidence in the dollar.”

Pointing to key advancements in currency-exchange technology, the group points out “[C]onverting…currencies to dollars, and vice versa, has been easier and cheaper than exchanging them for one another. But [countries] will soon no longer need to exchange their respective currencies for dollars to conduct trade cheaply.”

Damian White, Senior Precious Metals Advisor at Scottsdale Bullion and Coin, explains the real threat of a dollar downfall. “Currency collapses happen in slow motion at first. When the lack of confidence comes, it’s a waterfall effect and the currency collapses.”

Future Outlook

The obstacles to the dollar’s leadership are only getting more difficult to overcome as

economic, political, and geopolitical turmoil escalates. Many experts expect the greenback will gradually lose dominance in international reserves and trade. While the dollar loses its grip on the world economy, many see increased gold demand and higher prices. Even following a record-setting rally, several banks and economists are increasing their gold price predictions.

After months of rumors and speculation, The Federal Reserve finally broke its silence at Jackson Hole. Chair Jerome Powell took the stage to discuss the state of the economy and the group’s much-anticipated interest rate cuts.

In this week’s The Gold Spot, Scottsdale Bullion & Coin Founder Eric Sepanek and Precious Metals Advisor Joe Elkjer dive into what Powell said (and didn’t say) and where there are still good buying opportunities in gold right now despite record-high prices.

What Did Powell Say?

Jerome Powell acknowledged that inflation is cooling, currently sitting at 2.89%¹, a level the Federal Reserve finds acceptable. However, he admitted that transitory inflation was a mistake – an error that we here at SBC critiqued from the onset.

While inflation is ostensibly under control, Powell pointed out that employment is cooling faster than desired, a trend that could pose new challenges. He also hinted at incoming rate cuts but refrained from providing specific details.

What Powell Didn’t Say

Interestingly, the omissions in Powell’s speech may carry even more weight than what he discussed. He vaguely attributed all inflationary pressures to the pandemic without addressing specific policies, legislation, or spending that have significantly contributed to the current economic conditions.

Get More Out of Your Gold & Silver Investments

Learn How

“We’re not talking about the exponential problems this country faces. At no point did [Powell] talk about the radical spending and unchecked balances that’s contributing to inflation.” – SBC Founder Eric Sepanek

The CARES Act

Powell’s comments on the CARES Act perfectly demonstrate his broader attitude toward the nation’s economic challenges and his seriousness when approaching these problems. While the Fed Chair praised the legislation for its $2.2 trillion stimulus package, he overlooked a crucial detail: A staggering $400 billion – over 18% of the total budget – has either been stolen or mismanaged. The Internal Revenue Service has managed to recover $9 billion of these misappropriated funds, representing only a mere 3% of the total amount lost. This glaring oversight underscores the ongoing and unaddressed issues within the economic framework.

“What the Fed isn’t talking about will create bigger problems down the road.”

Smoke & Mirrors

The Fed’s annual soiree in Jackson Hole, Wyoming, is meant to give the American public a clearer picture of the country’s economic health and the government’s plans moving forward. Unsurprisingly, our fiscal czars haven’t been the most transparent over the past few years as debt levels spiral out of control and markets grow more volatile.

“The theme in Jackson Hole is a lot of smoke and mirrors.” – Precious Metals Advisor Joe Elkjer

This year, Powell tried to shift focus from inflation to unemployment. At the same time, the Fed’s nonpartisan mask is starting to slip as leaders like Janet Yellen try to make a positive economic case for illegal immigration while ignoring the downsides. Instead of a straightforward analysis of the economy, Americans were treated to a sleight-of-hand diversion.

The Exploding Debt-to-GDP Ratio

Another alarming economic trend, conveniently overlooked by the Federal Reserve, is the rapidly increasing debt-to-GDP ratio. This critical metric provides a clear measure of the nation’s ability to manage and repay its debt. Currently, the U.S. debt-to-GDP ratio stands at 123%, more than double what it was in the 1960s. This dramatic increase means it’s becoming increasingly difficult and costly for the American people to dig themselves out of this growing debt crisis.

Where Are the Deals in Gold?

Gold prices have been on a tear, recently surpassing a fresh record of $2,500/oz – another SBC prediction that ended up coming true. The yellow metal’s surge is largely attributed to rampant central bank gold demand, which has set records in 2022, 2023, and in the first half of 2024.

While central bank gold demand has remained robust, retail investors are still largely sitting on the sidelines. However, that won’t last long as economic uncertainty rises due to political strife, geopolitical tensions, and inflationary pressures.

“As we move closer to more instability, there’s going to be a huge move back into precious metals.”

Buy Gold & Wait, Don’t Wait to Buy Gold

With gold spot prices at all-time highs, many investors are looking for good buys as dealer premiums rise in response. Fortunately, there are plenty of excellent entry points if you know where to look. For example, premiums on investment-grade coins are extremely low right now, offering a significant opportunity for upside potential when these add-on costs snap back.

That’s about as much of a certainty as you can get in the precious metals space. When spot prices pop, premiums tend to drop, creating a short-term buying opportunity. Once demand kicks back up due to demand, prices go much higher.

“Right now is a very good time to be looking at gold.”

If you’d like to learn how to maximize your gold and silver investments, check out SBC’s FREE Investment Grade Coins Report.

After months of rumors and speculation, The Federal Reserve finally broke its silence at Jackson Hole. Chair Jerome Powell took the stage to discuss the state of the economy and the group’s much-anticipated interest rate cuts.

In this week’s The Gold Spot, Scottsdale Bullion & Coin Founder Eric Sepanek and Precious Metals Advisor Joe Elkjer dive into what Powell said (and didn’t say) and where there are still good buying opportunities in gold right now despite record-high prices.

What Did Powell Say?

Jerome Powell acknowledged that inflation is cooling, currently sitting at 2.89%¹, a level the Federal Reserve finds acceptable. However, he admitted that transitory inflation was a mistake – an error that we here at SBC critiqued from the onset.

While inflation is ostensibly under control, Powell pointed out that employment is cooling faster than desired, a trend that could pose new challenges. He also hinted at incoming rate cuts but refrained from providing specific details.

What Powell Didn’t Say

Interestingly, the omissions in Powell’s speech may carry even more weight than what he discussed. He vaguely attributed all inflationary pressures to the pandemic without addressing specific policies, legislation, or spending that have significantly contributed to the current economic conditions.

Get More Out of Your Gold & Silver Investments

Learn How

“We’re not talking about the exponential problems this country faces. At no point did [Powell] talk about the radical spending and unchecked balances that’s contributing to inflation.” – SBC Founder Eric Sepanek

The CARES Act

Powell’s comments on the CARES Act perfectly demonstrate his broader attitude toward the nation’s economic challenges and his seriousness when approaching these problems. While the Fed Chair praised the legislation for its $2.2 trillion stimulus package, he overlooked a crucial detail: A staggering $400 billion – over 18% of the total budget – has either been stolen or mismanaged. The Internal Revenue Service has managed to recover $9 billion of these misappropriated funds, representing only a mere 3% of the total amount lost. This glaring oversight underscores the ongoing and unaddressed issues within the economic framework.

“What the Fed isn’t talking about will create bigger problems down the road.”

Smoke & Mirrors

The Fed’s annual soiree in Jackson Hole, Wyoming, is meant to give the American public a clearer picture of the country’s economic health and the government’s plans moving forward. Unsurprisingly, our fiscal czars haven’t been the most transparent over the past few years as debt levels spiral out of control and markets grow more volatile.

“The theme in Jackson Hole is a lot of smoke and mirrors.” – Precious Metals Advisor Joe Elkjer

This year, Powell tried to shift focus from inflation to unemployment. At the same time, the Fed’s nonpartisan mask is starting to slip as leaders like Janet Yellen try to make a positive economic case for illegal immigration while ignoring the downsides. Instead of a straightforward analysis of the economy, Americans were treated to a sleight-of-hand diversion.

The Exploding Debt-to-GDP Ratio

Another alarming economic trend, conveniently overlooked by the Federal Reserve, is the rapidly increasing debt-to-GDP ratio. This critical metric provides a clear measure of the nation’s ability to manage and repay its debt. Currently, the U.S. debt-to-GDP ratio stands at 123%, more than double what it was in the 1960s. This dramatic increase means it’s becoming increasingly difficult and costly for the American people to dig themselves out of this growing debt crisis.

Where Are the Deals in Gold?

Gold prices have been on a tear, recently surpassing a fresh record of $2,500/oz – another SBC prediction that ended up coming true. The yellow metal’s surge is largely attributed to rampant central bank gold demand, which has set records in 2022, 2023, and in the first half of 2024.

While central bank gold demand has remained robust, retail investors are still largely sitting on the sidelines. However, that won’t last long as economic uncertainty rises due to political strife, geopolitical tensions, and inflationary pressures.

“As we move closer to more instability, there’s going to be a huge move back into precious metals.”

Buy Gold & Wait, Don’t Wait to Buy Gold

With gold spot prices at all-time highs, many investors are looking for good buys as dealer premiums rise in response. Fortunately, there are plenty of excellent entry points if you know where to look. For example, premiums on investment-grade coins are extremely low right now, offering a significant opportunity for upside potential when these add-on costs snap back.

That’s about as much of a certainty as you can get in the precious metals space. When spot prices pop, premiums tend to drop, creating a short-term buying opportunity. Once demand kicks back up due to demand, prices go much higher.

“Right now is a very good time to be looking at gold.”

If you’d like to learn how to maximize your gold and silver investments, check out SBC’s FREE Investment Grade Coins Report.