Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24
How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - 17th Feb 24
Why Rising Shipping Costs Won't Cause Inflation - 17th Feb 24
Intensive 6 Week Stock Market Elliott Wave Training Course - 17th Feb 24
INFLATION and the Stock Market Trend - 17th Feb 24
GameStop (GME): 88% Shellacking Yet No Lesson Learned - 17th Feb 24
Nick Millican Explains Real Estate Investment in a Changing World - 17th Feb 24
US Stock Market Addicted to Deficit Spending - 7th Feb 24
Stocks Bull Market Commands It All For Now - 7th Feb 24
Financial Markets Narrative Nonsense - 7th Feb 24
Gold Price Long-Term Outlook Could Not Look Better - 7th Feb 24
Stock Market QE4EVER - 7th Feb 24
Learn How to Accumulate and Distribute (Trim) Stock Positions to Maximise Profits - Investing 101 - 5th Feb 24
US Exponential Budget Deficit - 5th Feb 24
Gold Tipping Points That Investors Shouldn’t Miss - 5th Feb 24
Banking Crisis Quietly Brewing - 5th Feb 24
Stock Market Major Market lows by Calendar Month - 4th Feb 24
Gold Price’s Rally is Normal, but Is It Really Bullish? - 4th Feb 24
More Problems in US Regional Banking System: Where There's Fire There's Smoke - 4th Feb 24
New Hints of US Election Year Market Interventions & Turmoil - 4th Feb 24
Watch Consumer Spending to Know When the Fed Will Cut Interest Rates - 4th Feb 24
STOCK MARKET DISCOUNTING EVENTS BIG PICTURE - 31st Jan 24
Blue Skies Ahead As Stock Market Is Expected To Continue Much Higher - 31st Jan 24
What the Stock Market "Fear Index" VIX May Be Signaling - 31st Jan 24
Stock Market Trend Forecast Review - 31st Jan 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold, Silver, & Platinum Had a Good New Year 2023

Commodities / Gold & Silver 2023 Dec 31, 2022 - 06:06 PM GMT

By: MoneyMetals

Commodities

Precious metals markets are finishing out a choppy 2022 on an up note. A strong fourth quarter is pushing both gold and silver prices back up into positive territory for the year.

The yellow metal got off to a hot start in 2022, reaching as high as $2,050 an ounce in March. But it suffered a severe pullback in the second and third quarters. A rising U.S. dollar exchange rate amid aggressive Federal Reserve rate hikes drove futures traders to dump precious metals contracts.

In recent weeks, the Federal Reserve note dollar has begun trending lower versus foreign currencies – spurring the gold market to pick up some steam.


The best performing precious metal of 2022 looks to be platinum. Despite years of underperformance that have caused platinum to trade at an historic discount versus gold, prospects for the beaten-down metal may finally be turning around. Platinum is putting in an annual gain of over 10%. As we end the year, the industrial metal is likely to have best quarter in nearly 15 years.

The year’s worst performer in the metals space is palladium. Despite surging in the first quarter to a record $3,000 per ounce, the volatile metal is now down about 5% for the year.

Looking ahead to 2023, there are some good reasons for precious metals bulls to be optimistic. The U.S. Dollar Index appears to have put in a major top. Downside momentum could carry through into next year.

Meanwhile, the Fed has begun to wind down its rate hiking campaign. A recession in 2023 would likely prompt central bankers to fire up more stimulus to try to reinflate the economy and rescue financial markets.

Gold often performs well during recessions. It can certainly be expected to hold up better than economically sensitive stocks and most commodities.

Of course, ongoing inflation pressures should over time lift all hard assets in terms of dollars. Under our monetary regime, cash is destined to depreciate. It’s just a question of by how much. Even if the official inflation rate comes down from its double-digit highs of this year, that doesn’t mean the Fed is somehow succeeding in restoring price stability.

The last thing central bankers want to preside over is a currency with a truly stable value, which would mean 0% inflation and no room for them to maneuver or manipulate. They want to make sure inflation runs at least 2% officially so that debt levels can be steadily inflated away while penalizing and discouraging savers and encouraging spenders.

The risk is that real-world inflation continues to overshoot the Fed’s target. Investors, institutions, and states can protect themselves from inflation uncertainty by adopting sound money policies of their own. The sound money movement made gains in several state houses last year.

In 2022, legislators in 11 states across the U.S. introduced 24 pieces of sound money legislation. These bills seek to eliminate taxation on the sale and purchase of gold and silver, expand and extend existing sales tax exemptions on precious metals, establish in-state gold depositories, and bolster state taxpayer funds with physical gold and silver.

Tennessee became the 42nd state to partially or fully remove sales taxes on gold and silver. Of the 8 states that still impose a sales tax on purchases of precious metals, sound money forces expect sales tax exemption bills to be introduced in Kentucky, Maine, Mississippi, and Wisconsin in the upcoming 2023 legislative season.

Allies in a handful of states are also aiming to eliminate state-level capital gains taxes on sales of precious metals coins and bullion.

Idaho will also consider investing a portion of state funds in physical gold. And Tennessee and Wyoming may do so as well. Wyoming is also considering a system where the state treasurer establishes a mechanism for accepting and remitting payments in gold and silver.

Sound money reforms at the federal level are sorely needed, but for the time being it’s an uphill political battle to try to get any semblance of fiscal or monetary reform enacted. The recent passage of a $1.7 trillion spending bill shows that Washington is determined to keep spending and borrowing. And the Fed will keep accommodating the government’s appetite for new currency creation.

Investors should allocate their assets accordingly as they develop a game plan for 2023.

By Mike Gleason

MoneyMetals.com

Mike Gleason is President of Money Metals Exchange, the national precious metals company named 2015 "Dealer of the Year" in the United States by an independent global ratings group. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC, and his writings have appeared in hundreds of publications such as the Wall Street Journal, Detroit News, Washington Times, and National Review.

© 2022 Mike Gleason - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in