Our 2020 predictions for gold and silver turned out to be conservative. Way back in July 2019, when silver was barely $15, we “boldly” predicted $18 silver by year’s end and $20 silver in 2020. Well, we reached $18 silver in three months and $20 silver by July 2020. Then silver rose to $29 in August 2020!
As for gold, we predicted last January (in the Week 3 edition) that gold would reach $1,800 to $2,000 in 2020, but we were too cautious there, too. We predicted that gold would peak at $1,800 if Donald Trump won re-election, but we said the only chance gold would reach $2,000 was if a socialist Democrat like Bernie Sanders or Elizabeth Warren won in November. As it turned out, gold peaked at $2,070 in August, when the election was still 11 weeks away and the “moderate” Joe Biden was the Democratic candidate.
Last January, of course, we had no way of forecasting that the COVID-19 pandemic would supercharge deficit spending. We based our prediction on the ongoing impeachment process that month, as well as past election year trends, plus rising global tensions. In hindsight, the printing of way too many trillions of new dollars in response to the COVID panic was the primary engine that pushed gold prices above $2,000.
Just as a reminder, our 2021 predictions are for $2,350 Gold and $32 Silver. Could we be too conservative again? That is quite possible. There is no way Congress and the new Biden administration will lower deficit spending in 2021. Nor will COVID magically disappear with a vaccine that doesn’t really cure the disease. Nor will the many geopolitical threats suddenly solve themselves.
Now is not the time to sell any of your precious metals or rare coins you have stockpiled over the years. We need to hold all of our hard assets and buy more for times just like these, when metals will become more valuable as most major currencies “race to the bottom” in value. All major global central banks are offering zero or near-zero returns on cash and are massively infusing their balance sheets with new paper money. This is not the time to sell, it is for times like these that we accumulated “real” monetary assets. Call an account representative today!