Latest news with #preciousmetals
Yahoo
3 hours ago
- Business
- Yahoo
Precious Metals Rally as Gold Nears New Highs
Via Metal Miner The Global Precious Metals MMI (Monthly Metals Index) saw a strong rally from mid-May to mid-June. Precious metals prices like gold, silver, platinum and palladium all climbed on a potent mix of safe-haven investment flows and robust industrial demand. Geopolitical tensions, notably the recent flare-up in the Middle East between Israel and Iran, have only fueled more risk aversion. This continues to drive safe-haven demand into gold and silver. Palladium has improved from its spring lows but continues to lag other precious metals prices due to a fundamentally narrower demand profile. While that marks a modest rebound, palladium remains far below its peaks from a few years ago. The primary issue is softening demand. Over 85–90% of palladium's use is in catalytic converters for gasoline cars, a segment that remains under pressure as EV sales accelerate. Source: MetalMiner Insights Even within combustion vehicles, some automakers are reducing palladium loadings or substituting platinum to cut costs. On the supply side, palladium had faced chronic deficits for much of the past decade. However, that seems to be changing. After 13 years of shortfalls, 2025 is forecast to be roughly balanced in palladium supply and demand. Unless an unexpected supply disruption occurs (for instance, mining issues or sanctions affecting top producer Russia), palladium is likely to remain range-bound. Some downward pressure could even re-emerge if auto production weakens further. Procurement teams with palladium needs may want to adopt a more hand-to-mouth buying approach or look into substitution strategies, topics frequently covered in MetalMiner's free knowledge resources. Platinum has been a standout performer in the precious complex, with prices climbing significantly month-over-month. Unlike gold and silver, platinum's strength is heavily tied to supply and fabrication demand dynamics. On the supply side, the platinum market is swinging into a significant deficit this year. Leading analysts at Johnson Matthey project that platinum supply will fall short for a third consecutive year in 2025. This constrained supply, coupled with only modest recycling flows, continues to tighten the market. Metals strategists generally expect platinum to hold and potentially extend its previous gains. 'Platinum will retain recent gains and could rise a little further as gold and silver gain,' notes one analyst, emphasizing the metal's diversified demand base as outlined by Reuters. Silver prices have surged even more dramatically, outpacing gold in recent weeks. July COMEX silver futures mirrored this rise, with only minimal spread versus spot, indicating robust near-term demand. The Silver Institute forecasts the 2025 deficit at about 118 million ounces, which is only slightly narrower than last year. However, any reversal in gold or a resurgence of the dollar could cap silver's gains short-term. U.S. gold futures for August delivery have largely tracked spot prices, recently settling in the same range: a slight contango reflecting carrying costs. Over the past month, gold gained roughly 5%, and it's up an astounding ~45% from a year ago. Source: MetalMiner Insights. To get specific price points without overpaying for unnecessary data, learn about MetalMiner Select. Like other precious metals prices, a softer economic outlook and ongoing dollar weakness have added momentum to the gold index. On the demand side, central banks continue a buying spree, providing the metal with a firm floor. In Q1 2025, global central bank purchases hit a quarterly record of 244 tonnes, putting this year on track for ~1,000 tonnes again. This 'insatiable' official sector demand, along with resilient jewelry and investment buying, continues to offset stable mine output. Looking ahead two months, most analysts expect gold to remain elevated in the high-$3,200s to $3,400 range. Analyst sentiment is not only bullish, but major banks have been racing to raise their gold forecasts based on its 2025 performance thus far. By The MetalMiner Team More Top Reads From this article on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Khaleej Times
20 hours ago
- Business
- Khaleej Times
Is platinum on its way to become the next gold in investing?
In 2025, platinum has emerged as a surprising frontrunner in the world of precious metals, capturing the attention of investors who once focused solely on gold. Platinum rose one per cent to $1,336.08 on Thursday. Earlier in the session, the metal hit $1,348.72, its highest level since September 2014, Reuters reported. 'Platinum lease rates are high, so the refineries are not looking to manufacture because the cost is much higher. So demand is coming, but there's not enough supply... above ground inventory is tight,' said Brian Lan, managing director at GoldSilver Central, Singapore. Platinum lease rates refer to the cost of borrowing platinum for a set period of time. High lease rates can indicate a shortage of platinum in the market. With a remarkable surge of nearly 49 per cent this year, platinum has outpaced both gold and silver, prompting many to ask: could platinum be the next gold in terms of capital gains? The answer lies in a combination of industrial demand, supply constraints, and a shifting global energy landscape. Platinum isn't just a precious metal — it's a workhorse in the industrial world. It plays a critical role in catalytic converters for vehicles, hydrogen fuel cells, and other clean energy technologies. As the world accelerates toward decarbonisation, platinum's relevance has only grown. At the same time, supply has tightened. Mining output dropped by 13 per cent in the first quarter of 2025, contributing to a projected market deficit of nearly one million ounces. According to the Platinum Quarterly, the platinum market is expected to record a deficit of 966,000 ounces this year, which follows a 992,000 ounces deficit in 2024. The forecast platinum market deficit for 2025 has been increased from the 848 koz reported in March primarily due to upward revisions in global platinum demand. This imbalance between supply and demand has helped drive prices upward. Despite this rally, platinum still trades at just over half of its 2008 all-time high, making it appear undervalued—especially when compared to gold, which is currently at record levels. This relative undervaluation, combined with its industrial utility, has made platinum an increasingly attractive option for investors looking to diversify their portfolios. Gold, long considered the ultimate safe haven, remains a strong performer with gains of around 30 per cent this year. But platinum's dual identity—as both an industrial and investment metal—offers a different kind of opportunity. It's more volatile, yes, but also potentially more rewarding. 'A combination of industrial demand, supply constraints, clean energy applications and pricing make platinum the most attractive precious metal in 2025,' Kent Thune, analyst at wrote. In short, while gold continues to shine, platinum is beginning to sparkle in its own right. For investors willing to embrace a bit more risk in exchange for higher potential returns, platinum may very well be the metal to watch.
Globe and Mail
a day ago
- Business
- Globe and Mail
Market Factors: New TSX highs come with a caveat
In this edition of Market Factors, I'll detail the dominance of precious metals stocks in the rally from the 2025 lows and also how the real estate services sector is about to be automated. The diversion is Bezos-related and as always we'll look ahead to the important data releases for the next week. It's obviously a good thing when the S&P/TSX Composite Index hits a new high but there's a caveat for this one: performance has been driven by a sector that has little to nothing to do with the domestic economy or innovation. Scotiabank strategist Simon Fitzgerald-Carrier wrote that gold and silver stocks, up 47 per cent and 41 per cent respectively year to date, account for exactly half of the TSX's 2025 return. The impressive dominance of precious metals stocks in driving benchmark returns is even more apparent if we look at the recovery from the 2025 low on April 8. The benchmark's top performer was Novagold Resources Inc., up 85.2 per cent. Seven of the top 12 performing stocks for the April 8 to present period were precious metals stocks (this includes the highly precious metals-focused Sprott Inc.). Uranium stocks were also clearly visible in the top 12 – Cameco Corp. (up 80.9 per cent), Energy Fuels Inc. (63.8 per cent) and Nexgen Energy Ltd. (62.9 per cent) were all there – but let's not get distracted. Mr. Fitzgerald-Carrier attributes precious metals price momentum to uncertainty regarding U.S. tariffs. I also think gold is benefiting from the leadership-related lunatic discount the market is applying to the U.S. dollar. The Scotiabank strategist believes precious metals stocks can continue to outperform. A survey of central banks by the World Gold Council released Tuesday found that 95 per cent of respondents (73 central banks were surveyed) expected central bank gold reserves to increase over the next 12 months. Mr. Fitzgerald-Carrier also expects that rising U.S. inflation will cut into real Treasury yields, putting further downward pressure on the greenback that will push bullion prices higher. Precious metals are a problematic topic in financial theory. Personally I respect the role of precious metals in history and certainly respect the gains recently made by investors in the sector. On the other hand I lean more towards Warren Buffett's view that he'd rather own farmland, which generates annual income. One thing that's certain is that the recent gold-driven highs in the TSX are more proof that global investors are skeptical about the U.S. and aren't assuming that everything's rosy in the domestic economy and corporate world. Morgan Stanley real estate analyst Ron Kamden covers the U.S. but his belief, that AI will soon automate big swathes of public REIT and commercial real estate (CRE) services occupations, will likely have cross-border financial effects. Mr. Kamden believes that 37 per cent of all public REIT and CRE services jobs can be automated by AI. He estimates the cost savings at US$34-billion, or 16 per cent of operating cash flow in the sector. Management, accounting for 17 per cent of occupations, is the most at risk for automation followed by sales (14 per cent), administrative support (13 per cent) and installation maintenance repairs (12 per cent). I'm not sure how AI is going to repair the plumbing but these categories combine for 56 per cent of all jobs in REITs/CRE services jobs. AI applications that replace all these expensive humans, if they come to pass in the U.S., will soon drift across the border. Domestic REIT services CEOs would be negligent not to do so because their operations would become much, much more profitable for owners or shareholders. A lot of people hate Jeff Bezos but I like getting my packages delivered the next day. Mr. Bezos defends his outsize wealth by saying it represents 14 per cent of a company he built, and he helped the rest of the shareholders get wealthy too. He is, objectively, a tremendous executive, so much so that Warren Buffett called him the best business person he's ever seen. It's getting harder to defend Mr. Bezos though. I am a full-on capitalist but not sure that anyone in a healthy society should be rich enough to fund their own space program, for one. He built a massive yacht, which is fair enough, but he also commissioned a US$100-million support yacht called the Abeona for it. That seems a bit obnoxious to me. More recently, Gizmodo reported on an island off Florida nicknamed Billionaire Bunker on which Mr. Bezos owns a house. The island is connected to the mainland by a bridge guarded by dudes with guns to keep the riffraff out but it doesn't have its own water treatment facilities. It turns out that Billionaire Bunker residents are mad because the mainland won't take its sewage without a big fee. Looking for our updates on market movers, analyst actions, stock technicals, insider trades and other daily, weekly and monthly insight? Click here to visit our Inside the Market page. David Berman explains why the Iran-Israel conflict has only had a limited impact on crude oil prices so far Investment scammers are posing as economist David Rosenberg and bilking victims out of hundreds of thousands of dollars Mike Dolan of Reuters cautions that the U.S. dollar exit could be a crowded trade for some time. Meanwhile, Jamie McGeever reports that foreign central banks are shrinking U.S. asset exposure The domestic calendar of economic data releases and major earnings reports remains light for the coming week. It starts with retail sales results for April, which are out Friday. Economists forecast a 0.4 per cent headline gain month over month but a 0.2 per cent drop for the ex-autos reading. CPI numbers for May will be issued next Tuesday but economist guesses at the result are not available. For earnings, Alimentation Couche-Tard reports next Wednesday and analysts predict US$4.88 per share in profits. U.S. data starts with industrial production results for May. An exactly flat month-over-month reading is expected. The Federal Reserve announced no change in interest rates on Wednesday, as widely expected. Carnival Corp. (US$0.239 per share expected) and FedEx (US$5.887) release earnings on Tuesday. See the full earnings and economic calendar here
Yahoo
2 days ago
- Business
- Yahoo
If You Invested $1000 in Wheaton Precious Metals Corp. 10 Years Ago, This Is How Much You'd Have Now
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well. Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks. What if you'd invested in Wheaton Precious Metals Corp. (WPM) ten years ago? It may not have been easy to hold on to WPM for all that time, but if you did, how much would your investment be worth today? With that in mind, let's take a look at Wheaton Precious Metals Corp.'s main business drivers. Wheaton Precious Metals is one of the largest precious metal streaming companies in the world that generates its revenues from the sale of precious metals and company enters into purchase agreements ('PMPAs') to purchase the entireity or a portion of the precious metals or cobalt production from mines located across the globe for an upfront payment and an additional payment upon the delivery of the precious metal or cobalt. As of Dec. 31, 2024, Wheaton Precious Metals holds 38 long-term agreements, comprising 30 precious metal purchase deals, 3 early deposit agreements, and 5 royalties, spanning 18 operating mines, 23 development projects, and 4 mines which are closed or in care-and-maintenance. Following the PMPAs, Wheaton acquires metal production from the counterparties for an initial upfront payment plus an additional cash payment for each ounce or pound delivered that is fixed by contract, generally at or below the prevailing market price. The company's production profile is driven by the volume of metal production at its various mining assets. The primary drivers of the company's financial results are the volume of metal production at the various mines to which the PMPAs relate and the price realized by Wheaton upon the sale of the metals received. The company offers investors leverage to increasing precious metals prices, a sustainable dividend payout as well as organic and acquisition growth opportunities. Wheaton's operating costs are contractually set at the time the stream is entered into, which enables investors to benefit from cost predictability and strong margin growth amid rising metal prices. Wheaton is focused on adding additional production capacity from high-quality accretive metals. Its business model focuses on reducing risk while leveraging higher commodity prices. The company continues to add streams which bring immediate production, as well as medium and longer-term growth to its robust portfolio of assets. While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Wheaton Precious Metals Corp. ten years ago, you're probably feeling pretty good about your investment today. A $1000 investment made in June 2015 would be worth $5,002.18, or a gain of 400.22%, as of June 17, 2025, according to our calculations. This return excludes dividends but includes price appreciation. Compare this to the S&P 500's rally of 187.80% and gold's return of 173.85% over the same time frame. Analysts are forecasting more upside for WPM too. Wheaton Precious Metals is poised to gain from its diversified portfolio of high-quality and long-life assets. The company continues to add streams, which lead to immediate production, as well as medium and long-term growth, to its portfolio of assets. Its debt-free balance sheet will enable further acquisitions. Even though the company has been bearing the brunt of the suspension of operations at the Minto mine and the temporary halting of production at Aljustrel, this will be offset by growth from operating assets, including Salobo, Antamina, Peñasquito, Voisey's Bay and Marmato. It expects production to increase 40% over the next five years and be more than 870,000 GEOs by 2029, aided by contributions from assets, including Salobo, Antamina, Peñasquito, Voisey's Bay and Marmato mines. Estimates have lately moved north. The stock has jumped 17.06% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 9 higher, for fiscal 2025; the consensus estimate has moved up as well. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wheaton Precious Metals Corp. (WPM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
CBS News
3 days ago
- Business
- CBS News
When could gold's price hit $4,000? Investing experts weigh in
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. Gold could hit the $4,000-per-ounce price threshold soon, but there are multiple factors at play, experts say. Getty Images Gold has delivered a stunning performance since the beginning of 2024, surging from around $2,000 per ounce to where it sits today at over $3,400 per ounce. The precious metal shattered multiple price records along the way, including breaking through the key $3,000 barrier for the first time in history. This remarkable run was propelled by a number of factors, from inflation concerns to geopolitical uncertainties and heavy central bank buying. And, with the gold price per ounce now hovering near yet another potential record, it's natural to wonder: Will the precious metal reach $4,000 soon? We spoke with three investing experts to understand what could drive gold to this milestone and when it might realistically happen. Their insights reveal what's ahead for gold investing and practical ways to get exposure without paying today's high prices. Find out how to add gold to your investment portfolio today. When could gold's price hit $4,000? Investing experts weigh in "If gold prices follow the same percentage gains as last year, then hitting $4,000 in 2025 is in sight," says Ben Nadelstein, head of content at gold yield marketplace Monetary Metals. Nadelstein believes that in the long term, the dollar will continue to lose value relative to gold. Brandon Aversano, CEO of fintech platform The Alloy Market, expects gold to hit $4,000 within one year. "Given the instability and [global] conflict coupled with strong central bank demand and inflation, it's unlikely we'll see gold prices do anything but continue to increase," Aversano says. Gold has long been a tool used to hedge against inflation, which drives central bank buying during economic distress. The key indicator to watch, according to Aversano, is whether gold posts double-digit monthly or quarterly gains. This would signal an acceleration toward the $4,000-per-ounce mark. "[But if] we see the pace of gold price slow considerably, it may take longer to reach the milestone," he cautions. Portfolio manager Thomas Winmill at Midas Funds, an investment management firm specializing in mutual funds focused on precious metals, takes a more measured approach to the timeline. While gold has already climbed significantly in the first half of 2025, Winmill's analysis of supply and demand trends suggests a longer outlook. Unless there's a serious geopolitical event, "reaching $4,000 is more likely to occur in the next one to two years," Winmill says. Explore your gold investing options online now. Strategies for investing in the gold market now Today's gold prices may feel steep, but experts say there are still smart ways to gain exposure without paying premium prices. Here are a few strategies they recommend for getting started: Maintain a long-term outlook. Aversano recommends treating gold as a long-term asset class. "[The precious metal] is best used as a way to diversify a well-balanced financial portfolio," Aversano says. This approach means avoiding the temptation to jump in and out of gold investments based on daily price movements. The long-term strategy works especially well if you believe gold will reach $4,000 but aren't concerned about the exact timing. By focusing on the big picture instead of daily swings, you can benefit from gold's rise without worrying about perfect timing. Look into leasing out your gold. According to Nadelstein, leasing gold allows you to earn a monthly yield that's paid in gold, regardless of short-term price movements. With this strategy, you essentially lend your gold to borrowers and earn interest on it. Gold holders can start by deploying stored gold into a lease program. Instead of paying storage fees, you earn more gold ounces over time. This means you're adding to your position without having to buy more at today's high prices. This approach may be appealing if you already own some gold and believe the price will eventually reach $4,000. Consider gold mining mutual funds. "[Allocate] a percentage of [your] assets to mutual funds investing in the stocks of gold mining companies that can benefit from currently high gold prices," Winmill suggests. He expects mining company revenues and profits to surge over the next quarter due to these elevated gold prices. Winmill says that the best gold mining mutual funds typically focus on consistently profitable mining companies with solid balance sheets. When evaluating gold mining mutual funds, look for those that target companies with strong management teams and track records of generating free cash flow during uncertain times. The bottom line Whether gold will reach $4,000 in 2025 or later, experts agree on one thing: Get exposure sooner rather than later. "[Start] with some investment amount and try to add to [it] regularly," Winmill says. That way, you can realize consistent returns over time. Dollar-cost averaging can also help you weather short-term price volatility while staying positioned for long-term appreciation. If you're considering your options, a trusted financial advisor can help you determine the best approach for your portfolio.
