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"Gold is on a relentless bull run, silver is starting to catch up, and the miners are also joining the party as prices soar. But what’s really driving this bullish trend in bullion?
In this video, we dive into why gold and silver prices are pumping, silver’s industrial edge, and the boom in mining stocks - all while weighing the risks that could bring the rally to an end.
Whether you’re a gold bug or just curious about what all of this means for the broader economy and markets, this is one video you don’t want to miss."
~ Coin Bureau
The video discusses the remarkable "melt-up" in gold prices, which has been consistently reaching new highs, with silver starting to catch up and mining stocks following suit. The primary drivers for gold's recent surge include increased odds of a rate cut by the Federal Reserve due to weak labor market data, which softens the dollar and boosts non-yielding assets like gold. Political pressures on the Fed, questioning its independence, also create a hedge-the-institution bid for precious metals. Furthermore, geopolitical conflict risks and trade uncertainty push investors towards safe-haven assets. This bullish sentiment is reflected in record inflows into physically-backed gold ETFs and consistent buying by major central banks, particularly as questions about the US dollar intensify. Technically, gold has broken out of a consolidation range, with forecasters like Goldman Sachs suggesting a target of over $4,000 in the first half of the next year, with a more extreme scenario reaching $4,500 to $5,000 if Fed credibility takes a major hit.
Silver has also surged to 14-year highs, driven by the same factors affecting gold, such as a softer dollar and rising rate cut odds. Unlike gold, about half of silver's demand is industrial, used in items like solar panels and electric vehicles, which props up its price alongside speculative demand. The industrial market has been running a supply deficit for five straight years. Historically, silver tends to lag gold early in a bullish trend and then sprints to catch up, a phenomenon currently indicated by the falling gold-silver ratio (GSR). The current price action is moving silver towards its 2011 high of nearly $50, which is considered the clear target by the market. Gold miner stocks, tracked by the NYSE Arca Gold Miners Index, are also at fresh all-time highs for the first time since 2011. Miners' profit margins widen when the gold price significantly outweighs their all-in costs, leading to strong free cash flow and a "gold rush" for the stocks, which are often viewed as a leveraged bet on gold itself. However, the rally could end if the dollar strengthens, global tensions cool, investment flows cease, or if central bank buying slows, all of which would remove key pillars supporting the current precious metals rally.
0:00 Intro
0:46 Gold’s Bull Trend
5:25 Silver Catching Up?
9:46 Mining Firms
12:43 What Could End The Trend?
15:08 Gold Rallies and The Economy
Source - Coin Bureau YouTube: https://www.youtube.com/watch?v=HSCLBj_RrJw
Disclaimer: This video is provided for informational purposes only, and not offered or intended to be used as legal, tax, investment, financial, or any other advice.
