Silver: XAG/USD Trades Firmly Above $47

Above, an 1883-O Morgan dollar. Photo by Armand Vaquer.

Silver is going gangbusters this week. It is nearing the fifty-dollar mark in spot price. 

It is currently at $47.505/toz at COMEX.

According to FXStreet:

Silver price (XAG/USD) holds onto gains near the all-time high around $47.80 during the Asian trading session on Thursday. The white metal posted a fresh all-time high on Wednesday as funding to the United States (US) government stopped after the short-term funding bill failed to achieve a majority in the House of Senate on Tuesday.

The US government shutdown has increased the appeal of safe-haven assets, such as Silver.

US Vice President (VP) JD Vance has warned that the White House would need to resort to lay-offs if the shutdown remains for more than a few days, Reuters reported.

To read more, go here. 

Silver Down Near $23.00/toz

Silver's spot price is down near $23.00/toz.

According to FXStreet, the cause is as follows:

On Wednesday, the XAG/USD Silver Spot price closed near $23.00, as the reports of strong US economic activity fueled expectations of a more aggressive Federal Reserve (Fed) for the remainder of the year.

US bond yields sharply rose, often seen as the opportunity cost of holding non-yielding metals. The rate for the 2-year bond increased to 5%, whereas the rates for the 5-year and 10-year yields are at 4.43% and 4.30%, respectively. In addition, the USD measured by the DXY index turned its course north after the release of August's ISM PMI and increased above 105.00, presenting further challenges to the metal. In addition, the Fed’s Beige Book from July and August from the US reported slower economic growth while it pointed out that the job growth remained “subdued.”

In addition, Wall Street didn’t welcome the ISM figures, and the S&P 500 dropped by nearly 0.80% to its lowest level in a week. The Dow Jones Industrial Average (DJI) and the Nasdaq Composite (NDX) also decreased, with losses between 0.50-0.80%.

Since things constantly change, what goes down, must come up. And vice-versa. 

To read more, go here.

 

Silver Near $23.20/toz

It looks like the time is ripe for some silver buying.

I just checked COMEX silver spot price and it is down to the low $23.00/toz range. 

According to FXStreet:

On Monday, the XAG/USD Silver spot price tumbled near the 100-day Simple Moving Average near the $23.20 area seeing more than 1.80% losses. Rising US yields and a stronger USD following Friday’s sell-off are mainly responsibles for the metal’s decline.

As in everything in life, what goes up must come down (and vice-versa). Since silver is down, some deals are likely to pop up for buyers. 

Mississippi Legislature Votes To End Sales Tax On Precious Metals

New Mexico is one of the few states left that imposes a sales tax to precious metals on investors. The list is getting smaller as the Mississippi state legislature (both houses) voted overwhelmingly to end the practice.

The legislation is now headed for the governor's signature.

FXStreet reported:

State lawmakers of both houses have just voted overwhelmingly to exempt physical gold, silver, platinum, and palladium coins and bullion from the Mississippi state sales tax, sending the bill to Governor Tate Reeves (R) for his signature.

Senate Bill 2019, sponsored by Sen. Chad McMahan (R – 6), passed yesterday out of the full senate by a vote of 47-2. This afternoon, Rep. Jody Steverson’s identical House Bill 1661 passed out of the full house chamber on an overwhelming voice vote.

Backed by the Sound Money Defense League, Money Metals Exchange, and in-state Mississippi dealers and investors, the legislative effort built upon last year's momentum. In 2022, a similar sales tax exemption bill had passed out of the Mississippi House of Representatives overwhelmingly but it missed a deadline in the Senate needed to receive a hearing.

If Gov. Reeves signs the bill next week (or if he simply chooses not to veto it), Mississippi will become the 43rd state to exempt sales of sound money from state sales tax. The effective date is July 1, 2023.

Every one of Mississippi’s neighbors (Alabama, Louisiana, Kentucky, and Tennessee) have already stopped taxing the monetary metals. Most recently, Tennessee ended this tax in 2022, and Arkansas and Ohio eliminated this tax in 2021. 

If the New Mexico legislature can get on the ball and eliminate the sales tax on precious metals, they will be joining a vast majority of states who have previously ended the practice.

To read more, go here.