Gold and Silver are About to Score Their Best Year Since 2010 – What About 2021?
Gold rose $55 last week in its third consecutive weekly gain, due in part to the passage of yet another economic stimulus package by the U.S. Congress over last weekend. Gold closed last week at nearly $1,900, its highest level since November 6. This latest $900+ billion stimulus package is bound to spur inflation in 2021 and record-setting budget deficits this year and in 2021, as well as in future years.
With only a few days left in 2020, gold and silver now seem guaranteed to mark their best performance year since at least 2010, when gold gained 29% and silver gained 81%. Furthermore, if gold keeps gaining ground in the next 10 days, it might even surpass its previous record 32% surge, set in 2007.
Just as a reminder, our 2021 predictions are for $2,350 Gold and $32 Silver. We were too conservative in our predictions for 2020, with forecasts of $20 silver and $1,800 to $2,000 gold. Could we be too conservative again? That is possible. There is no way Congress and the new Biden administration will lower deficit spending in 2021, nor will COVID totally disappear with new vaccines. Nor will the many geopolitical threats totally disappear.
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 sub-1% 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.
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