#gold-coin

#gold-coin

Gold miners have relatively fixed costs to get the metal out of the ground. The all-in sustaining cost typically runs around $1,200 to $1,400 per ounce for most major producers. When gold trades at $2,000, a miner earns between $600 and $800 per ounce in margin. When gold climbs to $3,000, that margin roughly doubles, even though the gold price itself only rose 50%.

Part of the reason may lie in the fact that geopolitical risks had already been significantly priced in earlier. Prior to the correction, gold had risen for four consecutive weeks, pushing prices close to $5,420/oz and creating conditions for investment funds as well as retail traders to take profits, thereby triggering a sharp short-term pullback.

Gold pays no interest or dividends, making its appeal highly sensitive to what investors can earn elsewhere. When real yields fall, gold becomes comparatively more attractive. The 10-year Treasury yield has dropped from 4.29% in early February to 4.06% as of early March, coinciding directly with gold pushing to new highs.

Persistent tensions in Eastern Europe and the Middle East sustain the demand for safe-haven assets. However, the surge in oil prices raised concerns about inflationary pressures, pushing up inflation expectations and lifting Treasury yields, which could continue to weigh on gold.

On one hand, the precious metal continues to benefit from its traditional role as a safe-haven asset amid a tense geopolitical backdrop. On the other hand, rising inflation concerns, fuelled by higher oil prices, are affecting the outlook for monetary policy and limiting further upside.

The current decline in silver prices is not merely a temporary correction, but a deeper repricing of market expectations regarding the path of U.S. interest rates, which remains the most influential factor in the short term for non-yielding assets.

Gold has been on a tear as the dollar is under pressure, raising questions about global confidence and market risk. The US economy and markets are unmatched in size. The dollar is the king of currencies, and US treasuries are often considered a safe-haven asset. But, investors appear to be reassessing that. This has weighed down on the greenback and cooled the stock markets.

Silver has experienced a remarkable bull market, more than quadrupling in value from around $30 (24.54) per ounce at the start of the year to an all-time high of $120.44 per ounce (28 grams) on Thursday (January 29). At the beginning of last year, the metal traded on COMEX the commodity division of the New York Mercantile Exchange (NYMEX) near $30 in January and hovered between $37 and $40 through the summer before breaking decisively higher.

In 2026, scarcity is being repriced through narratives, market access and financial structures rather than simple supply limits. Bitcoin's scarcity is increasingly mediated by ETFs and derivatives, reshaping how it is accessed and priced in financial markets. Gold's scarcity is tied less to mining output and more to trust, neutrality and reserve management. Silver's scarcity reflects its dual role as both an investment metal and an industrial input.