Nugget News July
30 Day Market Moves
Silver $42.81 (+ 4.29%)
Gold $3371.65 (+ 4.27%)
Gold Outlook...Gold has performed remarkably well in 2024, rising by 22% y-t-d and outpacing most major asset classes. Gold has thus far benefitted from continued central bank buying, Asian investment flows, resilient consumer demand, and a steady drumbeat of geopolitical uncertainty. As we look forward, the key question in investors’ minds is whether gold’s momentum can continue or if it’s running out of steam. With a few exceptions, the global economy is showing wavering growth indicators – eager for rate cuts – amid lower but still uncomfortable inflation. And the market’s outlook is not too dissimilar. Our analysis suggests that the gold price today broadly reflects consensus expectations for the second half of the year. However, things rarely go according to plan. And the global economy, as well as gold, seem to be waiting for a catalyst.
- Global investors continue to benefit from gold’s role in robust asset allocation strategies.
Canada's Debt Problem...The Canadian Taxpayers Federation is criticizing the federal government’s 2024 budget for hiking taxes, increasing spending and allowing debt interest charges to eat up $54 billion of the budget. “Debt interest charges are costing taxpayers more than a billion dollars every week,” said Franco Terrazzano, CTF Federal Director. Massive deficits mean interest charges will cost taxpayers more than the feds send to the provinces in health transfers this year.
The Trudeau government is paying more in debt interest then the goverment collects in GST Revenue, for the first time in 12 years.
-The debt will total more than $1.2 trillion this year. When Prime Minister Justin Trudeau first took power, the debt was $616 billion. That means the Trudeau government will be responsible for doubling the national debt.
SILVER STAR...Silver is up 32% so far this year. You probably didn't know that, because mainstream media doesn't talk about Silver & Gold.
Global GOLD Pushers... Canada’s growing gold exports to China provide more evidence of the shift of gold from the West to the East. Asian gold demand has been hot through the first half of 2024. Vietnamese and Thai investors flocked to gold despite long lines and high prices. Gold is flying off convenience store shelves in Korea and gold demand in India recently surged during an important festival.
China has been the biggest driver in Eastern gold demand. As the Chinese central bank bought gold and dumped U.S. Treasuries, young Chinese investors lined up at shops to purchase gold beans.
-In 2023, Canada sold $589 million CAD in gold to the Chinese. That was up from $189 million CAD in 2020. That represents a 211.6 percent increase.
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