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Money Metals News Alert
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March 3rd, 2025
– Gold and silver prices ended last week lower, but are rebounding today.
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The Federal Reserve note
dollar strengthened in foreign exchange markets, and ten-year bond yields fell.
Buying in retail bullion
products was somewhat stronger in February than in January, as was selling.
Metals investors are
split. Some see an opportunity to sell with silver holding above $30/oz and gold
pressing toward $3,000.
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Safe-haven demand from gold bugs has
been down since Trump won the election.
Others consider now a good time to
buy. Inflation remains persistent and higher prices, particularly with regards to
gold, are attracting speculators. Gold is also in the headlines with both
President Trump and Elon Musk calling for an audit
of the U.S. gold reserves.
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Gold : Silver Ratio (as of
Friday's closing prices) – 91.5 to
1
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The Revenge of the Gold Bugs
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There aren???t too many upsides to the
widespread loss in confidence currently underway. It would be far better if major
institutions were trustworthy, competent, and efficiently run. But fixing these
institutions first requires recognition of the problems.
The people who spent all of their time
marginalizing gold bugs as nutjobs and conspiracy theorists are starting to find
themselves out on the fringe.
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It suddenly makes sense to
vast swathes of Americans to question whether long held assumptions are true. It's
the people who implicitly trust what they have been told by bureaucrats and
bankers who look a little silly.
The veil is slipping. Gold
and silver investors should be ready for some interesting revelations and,
perhaps, changes in the metals markets.
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They should also beware of "experts"
still clinging to conventional wisdom. Now is the time for questions, not blind
trust.
The following assumptions are foolish.
Those who defend them are naive at best, or they may have some stake in preserving
the status quo.
FOOLISH ASSUMPTION #1
– There are no problems with decades-old audits of the U.S. gold
reserves, including the bars in Fort Knox, and it???s unreasonable to ask for a new
audit that also examines encumbrances.
The best reason to do a comprehensive
audit of U.S. gold is that bureaucrats desperately want to avoid it. They resist
all efforts for a new inventory and assay of each and every bar.
Jan Nieuwenhuijs makes
the case as to why prior accounting relating to U.S. gold is misleading,
problematic, and incomplete. Readers who prefer a video can find that here.
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There are three
possibilities with regards to the U.S. gold reserves. The worst case is that some
of the gold is missing.
Another possibility is
that the U.S. gold has been leased, or otherwise encumbered and it is no longer
100% available to the U.S. Treasury.
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The best case is the gold is all there
and it is unencumbered, but much of it is in the form of coin melt (90% pure) bars
which are illiquid (as the bullion markets require much higher purity).
Anyone who still trusts what officials
have told them and ridicules the idea of a thorough audit, in this day and age, is
a moron. It is high time to go through the gold with a fine-toothed comb. Audits
are never ???one and done??? anyway.
FOOLISH ASSUMPTION #2
– Price manipulation is not a problem in the metals markets.
A number of major bullion banks,
including JPMorgan Chase, plead guilty to widespread price rigging not long ago.
The Department of Justice nailed them, even though the CFTC had not.
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There are thousands of
documents, chat logs, and voice recordings featuring traders colluding with their
peers at other traders at other banks to manipulate prices and stick it to their
own clients.
That was the moment it
became completely untenable for anyone to assert the gold and silver markets are
free and fair. The ???conspiracy theory??? is now officially a conspiracy fact.
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A valid question to examine is whether
the manipulation that occurs is merely is situational or systemic – and who
is involved...
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This week's Market Update was
authored by Money Metals Director Clint Siegner.
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This copyrighted material may not
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