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African banks are getting into gold

Sub-Saharan African central banks that have added gold to their reserves in recent years could face price and liquidity crises if the value of the precious metal slides, BMI, a unit of Fitch Group, said on Wednesday.

Ghana, Tanzania and Nigeria have been buying gold domestically to beef up their reserves, BMI said, a move accelerated by this year’s broader market volatility stoked by U.S. trade tariffs and other geopolitical risks.

Policymakers in Kenya and Uganda are exploring a move into gold, Rwanda and Namibia have taken active steps towards adding the metal into their reserves.

Governments could also struggle to convert their gold holdings into liquid assets like hard currencies, Gard said, pointing to India and Argentina when they faced acute balance of payments challenges in the 1990s and 2000s, respectively.

Source – Reuters

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    Gold fell, Silver up, Platinum up 1.7%

    Gold prices edged lower on Thursday, weighed down by easing geopolitical tensions in the Middle East and continued uncertainty over the Federal Reserve’s interest rate trajectory.

    Spot gold fell 0.5% to $3,316.47 per ounce, as of 0933 a.m. EDT (1333 GMT). U.S. gold futures slipped 0.4% to $3,329.20. 

    Palladium lost 2.5% to $1,084.41. Platinum climbed to its highest level since September 2014, adding 1.7% to $1,377.62.

    Spot silver was up 0.2% to $36.39.

    Source – Reuters

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    Gold and Silver : Experts predict 10% – 25% rally

    “Given the current scenario, central banks are likely to continue diversifying their reserves with gold for financial and strategic reasons,” ICICI Securities stated in its report.

    Pankaj Pandey, Head of Research at ICICI Securities, noted, “We anticipate fresh investment demand for gold in 2025 as investors seek a store of value amidst trade war anxieties.”

    Silver is poised to outperform gold in 2025, supported by strong industrial demand from green energy applications, including photovoltaics and electric vehicle (EV) electrification, said ICICI.

    Source – Live Mint

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    ‘Bitcoin Fixes This’—Elon Musk Pitched Gold ‘Upgrade’

    Now, as Elon Musk brands the U.S. debt clock “terrifying,” bitcoin-backing U.S. senator Cynthia Lummis has pitched Musk a bitcoin “fix” to questions over the U.S. gold reserves.

    “Bitcoin fixes this,” Lummis posted to X in response to Musk’s question about how often the U.S. gold in Fort Knox is reviewed. “A bitcoin reserve could be audited any time 24/7 with a basic computer. It’s time to upgrade our reserves.”

    “The recent decrease in volatility, coupled with the rising price of gold, should highlight bitcoinʼs growing appeal as an alternative store of value,” analysts with the Bitfinex crypto exchange said in emailed comments. “We believe that while bitcoin may face some short-term pressures due to macroeconomic headwinds in the coming weeks, its long-term value proposition continues to strengthen.”

    Source – Forbes

  • Silver Assets for Retirement: Coins, Bullion and Stocks

    Silver has long been a fascinating investment vehicle for retirement planning, offering a unique blend of tangible assets and potential financial security. As I am continuing to learn that precious metals are a great investment, silver investments have historically provided a hedge against economic uncertainties.

    Let’s explore three primary options that can help you diversify your retirement portfolio and potentially protect your hard-earned savings.

    Understanding Silver as a Retirement Investment

    Let me be real – when I first started exploring retirement investments, silver coins were the only thing on my radar. But after doing research alternative investment strategies, I’ve learned that other silver options can be a game-changer for savvy investors.

    Silver has proven to be more than just a shiny metal. It’s a strategic asset that can help balance your investment portfolio. Here’s why:

    • Historical performance shows silver often moves inversely to traditional stock markets
    • It provides a tangible hedge against inflation
    • Silver has intrinsic value beyond financial markets
    • Multiple investment options allow for flexible strategies

    My first silver investment was a bit nerve-wracking. I remember wondering if I was making a smart move or just throwing money at a random commodity. Turns out, understanding the market dynamics is crucial.

    Key factors influencing silver’s investment value include:

    • Industrial demand (electronics, solar panels, medical technologies)
    • Global economic conditions
    • Currency fluctuations
    • Mining production levels
    • Geopolitical tensions

    Silver Coins – The Collector’s Investment Strategy

    Ah, silver coins – where investment meets collectibility! I’ll never forget when I saw a collection of rare silver coins, each piece telling a unique story while potentially increasing in value. I grew very invested in the idea of collecting silver for myself to later put aside for retirement. It was and is a slow process for me but here are some things I’ve learned since I’ve been collecting.

    Types of silver coins for investment include:

    • American Silver Eagles
    • Canadian Silver Maple Leafs
    • Numismatic collector coins
    • Commemorative silver coins
    • Pre-1965 U.S. circulated silver coins

    Pros of silver coin investments:

    • Potential for appreciation beyond metal value
    • Portable and easily stored
    • Collectible aspect adds potential value
    • Lower entry point compared to larger bullion

    Cons and potential challenges:

    • Higher premiums over spot price
    • Authentication and grading costs
    • Storage and insurance considerations
    • Market for collector coins can be volatile

    Pro tip: Always purchase from reputable dealers and get proper certification for valuable numismatic coins. If you’re going to a coin show or collectable show make sure you know what you’re looking at before purchasing.

    Silver Bullion – Pure Precious Metal Investment

    Nothing beats the simplicity of silver bullion. It’s like owning a chunk of pure potential, sitting right in your safe or investment portfolio.

    Different forms of silver bullion include:

    • Silver bars (various weights)
    • Silver rounds
    • .999 fine silver products
    • Industrial-grade silver blanks

    Advantages of physical silver bullion:

    • Direct ownership of precious metal
    • No counterparty risk
    • Universal recognition
    • Easy to liquidate
    • Potential hedge against economic instability

    Storage challenges to consider:

    • Secure storage requirements
    • Insurance costs
    • Potential transportation complexities
    • Physical security measures

    Cost-effectiveness varies. While bullion typically has lower premiums than collector coins, you’ll need to factor in storage and security expenses.

    Silver Stocks – Paper Silver Investment Options

    Silver stocks represent an alternative investment strategy that allows investors to gain exposure to the silver market without physically owning the metal. Think of these as a paper representation of silver’s potential value, offering a more flexible and potentially less complicated investment approach.

    Types of Silver Stocks:

    1. Silver Mining Companies These are stocks of companies that extract silver from the ground. It’s like investing in the machinery and workforce behind silver production rather than the metal itself.

    Key Characteristics:

    • Publicly traded companies on major stock exchanges
    • Revenue directly tied to silver extraction and sales
    • Potential for significant returns based on:
      • Successful mining operations
      • Efficiency of extraction
      • Management quality
      • Global silver prices

    Examples of Notable Silver Mining Companies:

    • First Majestic Silver Corp
    • Wheaton Precious Metals
    • Pan American Silver
    • Hecla Mining Company
    1. Silver Streaming Companies A unique investment model where companies provide upfront capital to mining operations in exchange for the right to purchase silver at predetermined prices.

    Unique Advantages:

    • Lower operational risks compared to direct mining
    • More consistent revenue streams
    • Diversified portfolio of mining projects
    • Reduced exposure to direct mining challenges
    1. Silver Exchange-Traded Funds (ETFs) These are investment funds traded on stock exchanges that track silver prices or hold physical silver.

    Types of Silver ETFs:

    • Physical Silver ETFs (directly backed by silver)
    • Silver Mining Company ETFs
    • Futures-based Silver ETFs

    Investment Dynamics:

    Pros of Silver Stock Investments:

    • High liquidity compared to physical silver
    • No physical storage requirements
    • Potential for dividend income
    • Easier portfolio management
    • Lower transaction costs
    • Opportunity for more significant returns

    Cons and Risks:

    • Indirect exposure to silver prices
    • Subject to stock market volatility
    • Company-specific performance risks
    • Management inefficiencies can impact returns
    • Potential underperformance compared to physical silver

    Performance Factors:

    • Global silver demand
    • Industrial sector performance
    • Technological innovations
    • Economic conditions
    • Geopolitical tensions
    • Mining exploration success
    • Extraction costs

    Investment Strategy Considerations:

    • Diversify across multiple silver-related stocks
    • Research company fundamentals
    • Monitor global economic indicators
    • Understand correlation with silver spot prices
    • Consider long-term growth potential

    Tax Implications:

    • Typically taxed as capital gains
    • Potential dividend income
    • Different tax treatment compared to physical silver
    • Consult with tax professional for specific guidance

    Recommended Allocation:

    • Financial experts typically suggest 5-10% of portfolio
    • Depends on individual risk tolerance
    • Part of broader precious metals strategy

    Silver stocks aren’t just about the metal—they’re about the companies’ ability to extract, manage, and profit from silver resources. It’s like investing in the potential of a garden, not just the seeds.

    Practical Advice for Investors:

    • Start with a small, diversified position
    • Use dollar-cost averaging
    • Stay informed about market trends
    • Don’t rely solely on silver stocks
    • Regularly rebalance your portfolio

    Emerging Trends:

    • Increased demand from green technology
    • Growing industrial applications
    • Potential impact of electric vehicle production
    • Renewable energy sector growth

    Silver stocks offer a dynamic, flexible approach to silver investment. They provide exposure to the silver market with lower barriers to entry compared to physical silver, but they come with their own set of complexities and risks.

    Comparing Investment Options

    Let’s break down the key differences:

    Silver Coins:

    • Best for: Collectors and those valuing tangible assets
    • Pros: Collectibility, potential numismatic value
    • Cons: Higher premiums, storage challenges

    Silver Bullion:

    • Best for: Direct metal ownership, long-term holding
    • Pros: Pure asset, no counterparty risk
    • Cons: Storage costs, limited liquidity

    Silver Stocks:

    • Best for: Investors seeking market exposure
    • Pros: Liquidity, potential dividends
    • Cons: Market volatility, indirect ownership

    Conclusion

    Silver investments offer a compelling avenue for retirement diversification, each option presenting unique advantages and challenges. By understanding the nuanced differences between silver coins, bullion, and stocks, you can make informed decisions that align with your financial goals and risk tolerance.

    Remember, successful silver investing isn’t about going all-in, but about strategic allocation. Consult with a financial advisor, do your research, and consider your personal retirement objectives.

    Your retirement portfolio is like a garden – diversification is key. Silver can be that interesting, potentially valuable plant that adds something special to your financial landscape.

    Disclaimer: Always conduct thorough research and consider consulting a financial professional before making investment decisions.

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    HSBC on gold prices

    HSBC raised its 2025 average gold price forecast to $3,215 an ounce from $3,015 and its 2026 forecast to $3,125 from $2,915, citing elevated risks and government debt.

    “We anticipate a wide and volatile trading range of $3,600-3,100/oz for the rest of the year and year-end prices of $3,175/oz for 2025 and $3,025/oz for 2026,” the bank said in a note on Tuesday.

    Source – Reuters

    HSBC – is a British universal bank and financial services group headquartered in London, England.

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    Over the Weekend!

    Bitcoin Lags Behind Gold

    Bitcoin has gained just over 3% year-to-date, trailing gold’s 9% jump, according to data compiled by Bloomberg. The precious metal reached a record high of $2,882 an ounce after President Trump on Feb. 4 said the US could take over Gaza — a comment his aides sought to tone down. Bitcoin is currently about 10% below its peak.

    Source – Bloomberg

    Mali gold production  plunges 23%

    Mali’s industrial gold production plunged 23% to 51 metric tons last year from 66.5 tons in 2023, the West African country’s mines ministry said.

    With an estimated 6 tons produced in artisanal mines, Mali’s total gold production in 2024 is expected to reach 58.7 tons, the mines ministry said.

    Source – Reuters

    Michael Oliver says Gold’s Making All-Time Highs, SILVER To Follow

    “I think that once you punch a hole in the stock market… you’re going to have a lot of that money moving,” he predicted, suggesting that a 5-10% drop could trigger a significant shift in investor sentiment, driving capital towards safer havens like gold and silver.

    Silver didn’t move with commodities in moved with gold,” he asserted, countering arguments that silver has lost its monetary significance.

    Source – The Jerusalem Post / Opinion