In a special year-end Market Wrap podcast, industry experts reflect on the events that shaped the metals markets in 2023 and offer insights into what may influence gold and silver prices in 2024. Additionally, the conversation delves into legislative efforts across America to promote sound money, featuring an interview with Jp Cortez, the executive director of the Sound Money Defense League.
As the final trading week of 2023 unfolds, gold shines by putting in its highest-ever annual close. Presently valued at $2,076 per ounce, the yellow metal has experienced a weekly gain of 0.6% and an impressive annual gain of 13.3%, marking its most successful year since 2020. However, the gold price has faced resistance around the $2,100 level, with institutional sell orders on futures exchanges curbing attempts to breach this key resistance level.
Silver, often referred to as the “poor man’s gold,” has experienced a slight dip of 1.1% for the week, currently trading at $24.11 per ounce. Despite this weekly setback, silver’s annual performance shows a marginal decline of 0.4%. In contrast, platinum, which faced underperformance for most of 2023, is staging a robust rebound in the final months of the year. With a weekly advance of 2.2%, platinum is currently priced at $1,011 per ounce, though it lags behind with a yearly loss of 7.5%.
Palladium, the worst-performing precious metal in 2023, continues its struggles with a weekly decline of 7.8%. Despite this setback, palladium has seen a partial recovery from sub-$1,000 lows earlier in the month, now standing at $1,145 per ounce as of the midday recording on Friday.
Contrarian investors are eyeing opportunities in palladium, platinum, and silver for 2024. These white metals face chronic supply deficits as mining struggles to meet production demands. In Mexico, the world’s leading producer of silver, mining output has plummeted by nearly 25% over the past two years. The average all-in sustaining costs of production for silver miners approach $25 per ounce, providing little incentive for new development. Platinum and palladium, primarily sourced from South Africa, face a precarious supply outlook due to a decline in mining industry health.
The discussion shifts to the macroeconomic landscape, anticipating how gold will react to interest rates and monetary policy in 2024. Expectations for rate cuts in the upcoming year may exert downward pressure on the US Dollar, providing a favorable environment for gold. The presidential election year introduces additional uncertainty, with potential implications for inflation and monetary policies.
The conversation takes an insightful turn as Mike Maharrey interviews Jp Cortez regarding the release of the Sound Money Index for 2024. The index ranks all 50 states based on 14 criteria, evaluating their commitment to sound money principles. Wyoming, South Dakota, Alaska, New Hampshire, and Arkansas emerge as the top five states promoting sound money, while Vermont, New Jersey, Maine, Minnesota, and California lag behind in the bottom five.
Cortez sheds light on the progress made in states such as Arkansas and Mississippi, showcasing how grassroots pressure and strategic legislative efforts led to significant improvements in their Sound Money Index rankings. The interview emphasizes the importance of removing barriers and disincentives to foster innovation in the realm of sound money.
A legislative spotlight is placed on New Jersey, where efforts to end the sales tax on precious metals have gained significant momentum. Despite being surrounded by states that have already abolished such taxes, New Jersey remains one of the seven states still imposing sales tax on precious metals purchases. Recent unanimous votes in favor of repealing this tax in legislative committees signal a positive shift.
Looking ahead to the 2024 legislative sessions, Cortez expresses optimism about the potential for sound money legislation across the country. He emphasizes the non-partisan nature of sound money issues, recognizing that everyone is affected by the devaluation of the dollar.
As the podcast concludes, listeners are encouraged to get involved and support sound money legislation in their respective states. Cortez highlights the impact of grassroots engagement, urging individuals to take a few minutes to make a significant difference in advancing sound money initiatives in the United States.
