Weekly Market Update by Retirement Lifestyle Advocates

Silver Market Update

         In the May 19, 2025, issue of “Portfolio Watch”, I wrote this:

Silver prices have not increased at the same level as gold prices.  As I have been suggesting, the gold-to-silver ratio is now near an all-time high, perhaps suggesting that silver prices are due for a rally.

         Silver fundamentals also seem to favor a rally at this point in time.  The Silver Institute recently disseminated its World Silver Survey 2025.  The survey reported that since 2019, silver demand has been greater than supply, with demand in 2025 projected to exceed supply by about 188 million ounces.

         As if on cue, silver prices staged a big rally last week, advancing more than 9% from the prior week’s close.  While markets never go straight up or straight down, I expect that silver will go higher from here, perhaps after some consolidation or even a pullback after a strong breakout move last week.

         Long-term, given that it seems government deficit spending will continue, owning some tangible assets as part of your portfolio may not only be advisable it could even be essential.

Real Estate Update

         Applications for new mortgages fell again last week.  Compared to the same period in calendar year 2019, new mortgage applications are down a whopping 39%!  (Source:  https://wolfstreet.com/2025/06/04/demand-in-the-housing-market-just-got-even-worse-as-supply-piles-up/)

         From 2020 through mid-2022, thanks to artificially low interest rates that greatly increased demand, home prices in some markets around the United States spiked by 50% or more.

         Price increases of that magnitude in that short a time frame rarely hold in my experience, and this time looks like it will be no different.  The residential real estate market is looking very toppy here with inventories of existing homes increasing.  The National Association of Realtors recently reported that the supply of existing homes is now at 4.4 months as of April, the highest level for any April going back to 2016.

         I’ve written in this publication about the big slowdown in real estate in the Southeast part of the country, but California’s real estate market is also anemic.  Home listings are at extreme levels as demand is evaporating.  Year-over-year listings are up in most California cities.  San Diego has an increase in year-over-year listings of 66%, Los Angeles listings are up 47%, and Orange County up 79%, to name a few areas.

         Seems like we are now at the part of the real estate cycle where prices will begin to fall in earnest in the relatively near future. 

         Buying?

         Patience may pay off.

The United States Created More Than 560,000 New Millionaires in 2024

         According to a report released by Capgemini Research, the United States minted 562,000 new millionaires in 2024. 

         The global population of high-net-worth individuals, defined as those with at least $1 million in investable assets on top of their primary residence, rose by 2.6% last year.  The growth rate of high-net-worth individuals in the United States rose by triple that amount -7.6%.  In the United States, the population of ultra-high-net-worth individuals, defined as those with at least $30 million liquid, grew by 6.2%.  (Source:  https://finance.yahoo.com/news/u-minted-more-560-000-090000435.html)

         While the United States saw a high level of growth in ultra-high-net-worth individuals and high-net-worth individuals, Europe saw a decline in its high-net-worth population.  The high-net-worth population in Europe fell by 2.6% in 2024.

         Capgemini’s report also described the huge transfer of wealth that is on the horizon.  30% of high-net-worth individuals will receive an inheritance within the next five years, 63% will by the end of the next decade, and 84% will by 2040.

Drone Delivery Going Mainstream

         Wal-Mart announced that the retailer is partnering with the drone company, Wing, to begin drone delivery of orders to customers in five cities.

         Wal-Mart shoppers in Charlotte, Orlando, Tampa, Houston, and Atlanta will now have the option of getting their orders delivered by drone.  (Source:  https://www.yahoo.com/news/charlotte-among-5-cities-added-203738436.html)

         Wal-Mart has already been using drones for the delivery of customer orders in the Dallas-Fort Worth area, completing more than 150,000 drone deliveries since 2021.  Drones can fly up to 12 miles round-trip to make a delivery and operate in compliance with FAA safety guidelines.

Electric Vehicle Interest Is Plummeting

         EV interest among US drivers has dropped to the lowest level since 2019, with just 16% of drivers having an interest in an EV.  (Source:  https://oilprice.com/Energy/Energy-General/US-Electric-Vehicle-Adoption-Plummets.html)

         A survey conducted by AAA found that just 16% of US adults responded to the survey in the affirmative when asked if they were ‘likely’ or ‘highly likely’ to buy an electric vehicle. 

         Barriers to purchase cited by surveyed US drivers were high battery maintenance costs, high purchase price, and concerns about range.  Those factors are unchanged from prior surveys.

         This year, those surveyed also mentioned lower gasoline costs and uncertainty as to whether EV tax incentives will continue.

         The percentage of consumers surveyed who said that they were ‘unlikely’ or ‘very unlikely’ to purchase an electric vehicle for their next car was 63%, up from 51% last year.

RLA Radio

         This week’s RLA radio program features an interview that I did with Mr. Jeffrey Tucker, founder of The Brownstone Institute, where we discuss the recently released Make America Healthy Again report and other executive actions.

         The interview is posted and available now by clicking on the "Podcast" tab at the top of this page.

Quote of the Week

“When I was born, I was so ugly the doctor slapped my mother.”

                                                      -Rodney Dangerfield