Silver soars on fresh demand, inflation fears
Though all metals were extremely volatile this week, silver’s $2 per ounce explosion, from Tuesday’s low, pumped adrenaline into speculators worried about reciprocal tariffs, federal debt and a general apprehension that paper investments could be in for a downward correction.
China’s demand for industrial silver and steady craving from the electrical sector worldwide caught the attention of investors aware that silver conducts electricity better than any other element, including gold.
Copper and aluminum, also used to transport electricity, saw sharp swings but were not as turbulent as silver.
In a related move, a new gold rush has been triggered by tariff fears stimulating a massive transfer of gold from London to approved warehouses in New York. Trump’s broad-based tariffs on aluminum and steel seem to stimulate some of the buying by major banks. Central (government) banks have been active gold buyers with China, India and Russia.
By Friday afternoon, gold gave back most of its sharp rise that occurred mid-week. Elon Musk’s suggestion that the U.S. government stop making metal pennies was adopted by President Trump this week, drawing further attention to the relative value of a metal cent compared to the U.S. paper dollar.
Farmers grow debt with federal funds frozen
Farm assistance funds frozen by the federal government are adversely affecting U.S. farmers. The USDA froze $32 billion on Jan 27. Those funds cover such things as Rural Energy in America and the Environmental Quality Incentive Program and have yet to be released. The funds were part of Biden’s 2022 Inflation Reduction Act.
As required, farmers paid up-front money for approved projects such as fencing, new crop planting and renewable energy systems. However, the current freeze leaves the farmers on the hook. Farm organizations indicate that the government has failed to live up to its promise, leaving the farmers in serious financial jeopardy given their small profit margins.
Elimination of USAID (U.S. Agency for International Development) programs also leaves farmers holding the crops that would have gone to food aid and facing further loss. In addition, funds for farm research at 13 land grant state universities were halted.
If I can afford the eggs, can I eat them?
Avian flu and its many strains have dominated the recent news. The flu seems to be advancing in various parts of the country infecting chickens and other wild flocks as well as cattle herds and, now, some domestic barn cats.
In just December and January, 41.4 million birds had to be culled due to the bird flu. CDC indicated that at least 67 human cases have been reported in the U.S., with most occurring on farms. Although human cases are relatively rare, people are concerned about food safety.
The CDC cautions against uncooked, undercooked or unpasteurized food products. Eggs and poultry should be cooked to at least 165 degrees, while beef should be at least 145 degrees. Only pasteurized milk should be used.
CME midday prices: Price per bushel: March Soybeans, $10.40; March Corn, $4.98; March Wheat, $5.97. April Livestock per 100 pounds: Cattle, $195.50; Hogs, $93.40. Metals per troy ounce: April Gold, $2,908; March Silver, $32.85. March Copper per pound: $4.66. March Crude oil per barrel: $70.85.
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