Warren's Warning: This Market Signal Just Made History
The Oracle's favorite market metric hits unprecedented levels. Meanwhile, physical metals outshine mining stocks in the gold rush.
Gold Rush Fizzles: Miners Struggle Despite Bullion Boom
Gold miners are struggling to capitalize on record-high gold prices due to rising operational costs, particularly in labor and other expenses. Newmont Corp., the world's largest gold miner, reported disappointing earnings, revenue, and profit margins in the third quarter, causing its stock to plummet. This suggests that the gold mining industry may be facing challenges in translating high gold prices into increased profitability, as inflationary pressures continue to impact their operations.
Is Silver the New Gold? Industry Demand Challenges Traditional Hierarchies
Silver prices have reached historic highs on the Multi Commodity Exchange. Anil Agarwal from Vedanta Group highlighted the increasing industrial importance of silver. Demand has doubled, driven by its use in various industries. Hindustan Zinc, part of Vedanta, is a significant producer, and a new industrial park in Rajasthan aims to boost local industries and job creation around silver production.
Kremlin's Economic Gambit: 21% Interest Rate to Tame Runaway Inflation
Russia's central bank has raised its key interest rate to a record-high 21% in response to persistent inflation, which reached 8.6% year-on-year in September. The bank cited strong domestic demand outpacing supply capabilities and increasing inflation expectations as reasons for the rate hike. This move comes as Russia's economy continues to grow, driven by oil export revenues and increased government spending, particularly on military expenses related to the ongoing conflict in Ukraine.
Profit-Taking Halts Gold's Ascent, Geopolitical Tensions Provide Support
After reaching an all-time high of $2,758.37 per ounce on Wednesday, gold experienced a modest decline on Friday due to profit-taking. The precious metal's price fell 0.4% to $2,724.50 per ounce, though its downward movement was limited by persistent geopolitical concerns and the approaching U.S. presidential election.