"I think there's now more and more people that are just like ... 'Let's have a gold position that's permanent. Not as a play on its price, but because we don't want 100 percent exposure to the dollar,'" said Keith Weiner of Monetary Metals.
Keith Weiner, founder and CEO of Monetary Metals, discusses gold and silver's performance so far this year and shares his outlook for the rest of 2025.
He also explains what makes today's gold bull market different than those seen in prior years.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
The gold price cooled off this week as tariff-related uncertainty reached a resolution.
The yellow metal was thrust into headlines late last week when US Customs and Border Protection told a Swiss refiner that 1 kilogram and 100 ounce gold bars would be subject to Trump administration tariffs that went into effect on August 7.
Gold is one of Switzerland's top exports to the US, and with the country facing a 39 percent levy, questions were rife about what the impact could be. Clarification came on Monday (August 11), when US President Donald Trump said on Truth Social that gold "will not be tariffed."
While the news calmed market participants, Keith Weiner of Monetary Metals believes the incident could have long-term impacts. He said the tariff confusion caused the spread between spot gold and gold futures to blow out, creating difficulties for entities using the market to hedge.
Here's how Weiner explained it:
"Once you've put the scare into everybody, you can't just say, 'Oh, sorry, just kidding.' You can't really do that. And so now we've done damage, and we'll see what happens to that spread over time. We'll see how users of the futures market adapt.
"There are other markets in the world that would be competing for this hedging business — maybe it moves to Singapore, maybe it moves to Dubai, maybe it moves to London, and the US loses not only a little more trust, but also a little bit of volume on what had been the biggest, or what is currently the biggest, futures market."
This week also brought the release of US consumer price index (CPI) and producer price index (PPI) data. On a seasonally adjusted basis, CPI for July was up 0.2 percent from the previous month and 2.7 percent from the year-ago period. Meanwhile, core CPI, which excludes the food and energy categories, was up 0.3 percent month-on-month and 3.1 percent from the same time last year.
While those numbers were largely in line with expectations, seasonally adjusted July PPI figures came in hotter than expected, rising 0.9 percent month-on-month compared to Dow Jones' forecast of 0.2 percent. Core PPI increased 0.9 percent from June compared to an estimated rise of just 0.3 percent.
Speaking about the implications of the data, Danielle DiMartino Booth of QI Research said it shows companies aren't yet passing tariff-related price increases on to consumers.
This is what she said about how these circumstances could develop:
"I do think that we will see where companies feel they can push through price increases — I think we'll see that. We saw quite a bit of food inflation in the PPI, and when you're talking about things like essentials, and especially with very, very low-margin types of sales, we could see what we call the substitution effect begin, where households end up buying other things. The classic is always that they trade down from steak to ground beef, or trade down from beef to chicken.
"We're going to see whether or not that plays out again."
While the PPI data has slightly dampened expectations that the US Federal Reserve will cut interest rates when it meets in September, CME Group's (NASDAQ:CME) FedWatch tool still shows a strong probability of a reduction at that time.
Contemporary Amperex Technology (HKEX:3750,SZSE:300750), better known as CATL, said on Sunday (August 10) that it will halt production at a lithium mine in China for at least three months.
Sources familiar with the matter told Bloomberg that CATL, which is the world's largest electric vehicle battery maker, failed to extend a key mining permit. The company is reportedly in talks about a renewal, but is prepared for a months-long shutdown.
Share prices of lithium miners rose on the news, buoyed by expectations that the CATL mine closure will help reduce oversupply. Excess output has caused Chinese lithium prices to drop 80 percent since the end of 2022, and investors are keen to see a turnaround for the beleaguered battery metal.
Mitsubishi (TSE:8058) is set to acquire a 30 percent stake in Hudbay Minerals' (TSX:HBM,NYSE:HBM) Arizona-based Copper World subsidiary for US$600 million.
Hudbay called Mitsubishi its "strategic partner of choice," while Mitsubishi said the investment will help advance its copper growth plans. A feasibility study is in the works for Copper World, and a definitive feasibility study is expected in mid-2026.
Hudbay shareholders reacted positively to the news, which comes on the back of a strong focus on copper supply after last month's announcement of a 50 percent tariff on US imports of semi-finished copper products and intensive copper derivative products. The company projects that Copper World will result in a direct $1.5 billion investment into the US critical minerals supply chain.
Want more YouTube content? Check out our expert market commentary playlist, which features interviews with key figures in the resource space. If there's someone you'd like to see us interview, please send an email to cmcleod@investingnews.com.
And don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Brien Lundin, editor of Gold Newsletter, shares his thoughts on gold and silver prices, as well as what types of stocks he's focusing on in these sectors.
In his view, the precious metals are set up for a new era.
Click here to sign up for the New Orleans Investment Conference, hosted by Lundin.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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John Kaiser of Kaiser Research shares his outlook for the gold price, also mentioning several junior mining stocks that he's watching right now.
"I think we're in a very special moment," he said.
"All you need to do is believe that gold is not crashing back below US$2,000 (per ounce) to load up on these stocks and be set to make five, 10 times your money."
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
The gold price edged higher this week, benefiting from increased investor uncertainty as US tariffs went into effect for dozens of countries on Thursday (August 7).
Rates start at 10 percent and rise as high as 50 percent for countries like Brazil. The US is still in talks with Canada, China and Mexico, its top three trading partners.
Commenting on the news, President Donald Trump took to his social media platform Truth Social, saying that "billions of dollars" will now start flowing into the US.
Aside from that, there are hopes the tariffs will provide a boost for domestic businesses as buyers turn inward. However, critics argue that the levies will be passed on to American consumers who are already dealing with the ongoing effects of inflation.
Going back to gold, the yellow metal has also seen support from strong expectations that the US Federal Reserve will cut interest rates when it meets in September.
This outlook comes after weaker-than-expected July jobs data released last week — only 73,000 jobs were added for the month, and in addition to that the Bureau of Labor Statistics revised down numbers for May and June, saying 258,000 fewer jobs were created.
Trump fired the bureau's commissioner of labor statistics in response, saying the numbers weren't accurate. Fed Chair Jerome Powell also found himself in the line of fire, with the president suggesting that he too should be put "out to pasture."
The Fed turned heads in the resource space this week with the release of an article on gold revaluation. In it, a principal economist looks at "rare cases when countries used proceeds from valuation gains on gold and foreign exchange reserves."
While precious metals market watchers have noted that the Fed publishing research on gold revaluation doesn't mean it's going to happen in the US, it's still seen as significant that the central bank is mentioning it at all.
The People’s Bank of China continued snapping up gold in July, adding to its reserves of the yellow metal for the ninth month in a row. According to Bloomberg, the Asian nation now holds 73.96 million ounces of gold, an increase of 60,000 ounces over the course of the month.
China is also reportedly adding to its platinum holdings, with data from Standard Chartered (LSE:STAN) showing that it brought in 1.2 million ounces in the second quarter.
A separate article from Bloomberg indicates that state-owned entity China Platinum is making most of the purchases, meaning it’s difficult to know who is really buying the metal.
The US is picking up platinum too, while London and Zurich are seeing shortfalls of the metal. With the implied one month lease rate down from over 35 percent last month, but still elevated at 10 percent, experts are calling for continued tightness in the market.
After years of rangebound trading, the platinum price began breaking out in mid-May, eventually surpassing US$1,470 per ounce and reaching highs not seen in over a decade.
First Quantum Minerals (TSX:FM) will receive a US$1 billion upfront cash payment from Royal Gold (NASDAQ:RGLD) under a gold-streaming deal for its Kansanshi mine.
According to First Quantum, the agreement, announced on Tuesday (August 5), will allow it to retain exposure to all of the asset's copper output and most of its gold production.
Located in Zambia, Kansanshi is the company's flagship operation, as well as Africa's largest copper mine. The asset produced about 170,000 metric tons of copper and 105,000 ounces of gold in 2024, with an expansion in the final stages of commissioning.
The amount of gold First Quantum delivers to Royal Gold will be based on its copper output. In addition to the US$1 billion initial payment from Royal Gold, First Quantum will receive 20 percent of the gold spot price for each ounce delivered, with that amount rising to 35 percent in the event that specific milestones are met. The arrangement includes acceleration provisions as well.
Want more YouTube content? Check out our expert market commentary playlist, which features interviews with key figures in the resource space. If there's someone you'd like to see us interview, please send an email to cmcleod@investingnews.com.
And don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Jeff Rhodes of Goldstrom Advisory shares his analysis of the gold price and key drivers, plus his precious metals investment strategy.
"Play from the long side. Be prepared to take profits when it looks good, but generally adopt an approach to buy into dips," he said. "Always buy. Don't try to play the markets, just buy on a regular basis."
Watch the interview above for Rhodes' insights on the gold, silver, platinum and palladium markets.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
