Take a look at what is happening with Japan, gold, silver, and platinum.
Japan, Gold, Silver, Platinum
May 22 (King World News) – Peter Boockvar: JGB yields continued higher overnight with the 40 yr yield now up in 10 out of the last 11 days and by 43 bps in this time frame. The 10 yr yield was up by 2.2 bps to 1.53% and is approaching the recent 17 yr high of 1.59%. The selling spilled over to other sovereign bond markets in Asia and also in Europe too day with European yields up 5-7 bps across the board. This explains too why the US 10 yr yield is back above 4.50% and the 30 yr yield has a 5 handle again.
Negatively impacting European rates was the higher than expected UK CPI figure for April. Headline CPI was up by 3.5% y/o/y, two tenths more than anticipated. The core rate was higher by 3.8% y/o/y, also two tenths above the estimate. A 28% m/o/m rise in airfares because of the timing of Easter this year was a main factor for the upside but gilt yields are still higher as are inflation breakevens in the UK. The pound is a hair below the highest level vs the US dollar since February 2022.
Gold is regaining some life again after the recent correction and we remain bullish and long as its reserve asset importance becomes further solidified. Silver too has a bid and I want to point out platinum, another precious metal we are long and bullish on. Platinum yesterday closed at a one yr high, though is still down 45% from its peak in 2011.
Squeeze In Platinum
About 40% of demand use for platinum goes into catalytic converters used for taming exhaust emissions and with hybrids seemingly winning the VHS/Betamax battle against full EVs, the demand for this metal should continue on. And in fact, the World Platinum Investment Council forecasts supply deficits relative to demand in the few years to come after deficits seen in the past few years. https://platinuminvestment.com/files/873451/WPIC_Platinum_Quarterly_Q1_2025.pdf
A catalyst for the 5.6% rally in platinum yesterday was a Bloomberg story titled “China Imports the Most Platinum in a Year as Squeeze Tightens.” China happens to be the largest consumer of platinum in the world. If you’re looking for a cheap asset, and a hard asset at that, this is one of them.
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Just Released!
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