Trudeau Resigns

G7 Set to Shift Rightward as Trump's Resurgence Reshapes Global Politics. Silver Soaring past $30...finally.

Justin Trudeau's decision to resign as leader of the Liberal Party and Prime Minister of Canada comes amid a perfect storm of political and economic challenges. His popularity has plummeted to unprecedented lows, with his approval rating dropping to a mere 22% and support for the Liberal Party dwindling to just 16%. This sharp decline in public support has left Trudeau vulnerable to political pressure from all sides.

The situation in parliament has become increasingly untenable for Trudeau's minority government. All three opposition parties have signaled their intention to support a motion to dissolve the government, with even the once-allied New Democratic Party (NDP) threatening a no-confidence vote. Trudeau himself cited parliamentary paralysis as a key factor in his decision, stating that the legislative body has been "paralyzed for months".

Adding to the political turmoil, Trudeau's cabinet has begun to crumble, with key members like Finance Minister Chrystia Freeland and Housing Minister Sean Fraser tendering their resignations. This instability at the highest levels of government has further eroded confidence in Trudeau's leadership.

The economic landscape in Canada has also contributed to Trudeau's woes. The country is grappling with rising living costs, a housing affordability crisis, and growing concerns over high levels of immigration. These issues have fueled public discontent and eroded support for Trudeau's government.

Looking ahead to the upcoming election, the prospects for Trudeau and the Liberal Party appear grim. Polls indicate a likely ousting by the opposition Conservative Party, which currently holds a commanding 21-point lead. This electoral forecast, combined with potential external pressures such as tariff threats from Donald Trump, has created a perfect storm that Trudeau seems unwilling to weather.

In light of these circumstances, Trudeau's resignation appears to be a strategic move to exit on his own terms before potentially being forced out. It reflects a recognition of the growing discontent both within his party and among the general public, and perhaps a desire to give the Liberal Party a chance to regroup under new leadership before facing the electorate.

Silver Soaring past $30 (finally)

Silver markets are experiencing significant turbulence as the Exchange for Physical (EFP) premium has surged to 60 cents, up from 44 cents on Friday.

This dramatic increase in the EFP is causing volatility in the futures markets, with shorts feeling the pressure from proposed tariffs

The situation is reminiscent of the 2020 EFP crisis when premiums jumped to over 65 cents from a normal range of 1-10 cents

Adding to the market dynamics, industrial demand for silver has reached an all-time high, with forecasts indicating a 7% to 12% increase in 2024 to surpass 850 million ounces for the first time in history.

This surge is primarily driven by green economy applications, particularly in the photovoltaic sector, aerospace, military (silver zinc batteries) and EVs.

Simultaneously, silver supply is at an all-time low, creating a significant structural deficit for the fourth consecutive year

The combination of record-high industrial demand, supply constraints, and the potential for silver to reassert itself as a monetary metal is creating a bullish outlook. As silver's dual role as an industrial commodity and a precious metal becomes more pronounced, investors are closely watching for signs of a potential price breakout.

With these factors in play, the silver market is poised for an interesting period ahead.