Podcast: Play in new window
Precious metals have declined slightly over the week, but that’s not the whole story. Let’s take a look at our weekly recap of the precious metals markets for September 4. As of this recording, here is where precious metals stand:
The price of gold has declined about 1% or $20 to around $2,485 from a week earlier.
The price of silver is down about $1.25 to $28.24 since last week.
Platinum is down about 3.5% or $32 to around $906 from a week earlier.
Palladium is dead even at $936 from week to week.
Looking at the broader markets…
The S&P 500 is down about 90 points to around 5,510, failing to show above some previous highs.
The dollar is at $101.20, staying flat week over week.
Gold and Silver Stronger This Year
Looking at the August numbers, gold and silver continue to trend higher.
While gold was up just 3.4% in August, it increased by 21% from year to date at the close of August and up 30% year over year.
Gold has been on an upward trend, with rising ceilings going back all the way to April. The yellow metal hit a new high on April 12th, then two more new highs on May 20th and July 16 successively. Its fourth new high level, reached on August 20th gave gold a really strong breakout above previous trading ranges. This trend shows an optimistic look on gold, with it breaking out of a boundary range in the near term.
Meanwhile, silver continues to be undervalued. No one is talking about silver, and yet it has had a 30% climb very quietly. Silver rose only 0.7% in the month of August. But silver is up 21% from year to date by the close of August and up 30% year over year in the 12 months.
Future EV Demand for Silver
Samsung is developing a new electric vehicle battery that will require 1 kilogram of silver per battery for production.
This new silver EV battery has the potential to breathe new life into the EV market, which has been floundering. Silver will cut the EV charging time from hours to minutes, and it will extend the driving range for EVs.
The batteries won’t be on the market for another year. However, this innovation has the potential to change the fundamentals for silver when they go into full production.
Plan Your Precious Metals Buy
The best time to buy precious metals was 20 years ago. The second best time is right now. One of our trusted McAlvany advisors can help determine your strategy for purchasing gold. You can schedule a no-obligation consultation with one of them by calling our office: 800-525-9556.
