Good Morning. Today is March 18, 2023.

This is the Bullion Baron, the weekly newsletter that tees up the best of precious metal investing advice so you can make the right investments at the right time.

Here’s what we got for you today:

1. China is gobbling up gold

2. Gold to grow in 2023

3. Bank failures lead to a run on gold

The Baron's Investment Forecast

Link to forecast methodology.

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Gold Buying Trends: China is buying gold.

What's happening? The most significant gold buying announcement in the last 2 years came at the end of 2022 as the People’s Bank of China ("PBoC") reported the first increase in their gold reserves since September 2019. The PBoC announced total gold purchases of 62t. This lifted their total gold reserves to over 2,000t for the first time.

How does this impact me? #1 It's China. Anytime China makes a major shift in the way they invest, American investors should be wary. #2 China owns a significant stake in American Debt, see here. #3 China has historically been a large buyer of gold, meaning they already have a lot. China accumulated 1,448t between 2002 and 2019.

How do I learn more? Read the story by clicking here.

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Gold Market Trends: Gold to grow in 2023

Historical Gold Market Trend since 1900

Gold has historically proven to be an poor hedge against inflation.

This is largely because gold does not bear interest. Therefore, the dominant factors affecting it are: US money market rates, bond yields, and the strength of the US dollar. These factors worked against gold last year, but that is expected to change.

Gold is expected to make gains in 2023. The Fed has yet to complete its job of raising interest rates. Leading indices suggest that the US economy is cooling down, meaning the FOMC will soon reach the peak for the Fed Funds target rate.

In the Eurozone, the Purchasing Managers’ Index (“PMIs”) indicate a reduced probability of a recession this year. When it comes to interest rates, this will likely favor the euro as compared the US dollar leading to further gains in gold.

Read the full story from Peter Fertig here

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Gold purchases spike following the second biggest bank failure - of all time.

What happened? Major Bank Failures

Silicon Valley Bank (SVB) collapsed on March 10, 2023. This is the second largest bank failure in US History. Why? Because customers panicked and withdrew their deposits.

Signature Bank: Soon after SVB, Signature Bank collapsed.

Following the failures, the US Government attempts to reassure the public

The Government's goal was to remove any doubt about the safety of depositors’ funds. However, some regional banks, including Pacific Western Bank in California and Zions Bank in Utah, remain in the crosshairs.

Why didn't it work? Smart investors worry that many regional banks share SVB’s reliance on an insufficient depositor base and assets that lost value over the past year. Even the Washington Post isn't convinced consumer confidence is back.

Meanwhile, gold purchases are spiking as investors look to shore-up their potential risk exposure.

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Do you remember when?

Every week we try to add a little fun or nostalgia into your day. Here's what we got:

"Brylcreem — A Little Dab'll Do Ya! Brylcreem — You'll look so debonair. Brylcreem — The gals'll all pursue ya; they'll love to run their fingers through your hair!". Another rendition was "Brylcreem—a little dab will do ya! Use more only if you dare; but watch out! The gals will all pursue ya! They'll love to run their fingers through your hair!

On this day in history:

1966: The TV show "Batman," starring Adam West and Burt Ward, aired its final episode after 3 seasons. Many argue the show was the basis for successful movies.

1802: The United States Military Academy, also referred to as West Point, is established by Congress.

1965: The movie "The Sound of Music," starring Julie Andrews and Christopher Plummer, was released into movie theaters. The film would win five Academy Awards, including Best Picture.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.