Precious Metals Soar as 2021 Begins
Gold soared $50 (+2.6%) and silver surged $1 (+3.8%) Sunday night and Monday morning to begin the 2021 trading year, after enjoying their best year of the past decade in 2020. Gold hit an 8-week high on a weak dollar, which fell to a 2.5-year low, based on record high deficit spending and printing of yet another round of “stimulus” checks last week. There is also more “safe-haven demand” following a surge in COVID-19 cases in the U.S., Europe and other parts of the world – which tends to boost precious metals prices.
Meanwhile, stocks are down on the first trading day of the year, with the Dow dropping 500 points at mid-day. This does not establish any firm trend for the year, but on Day 1, gold is strong and stocks are weak.
As we close out another year, gold is still beating stocks by over 3-to-1 in the new millennium. Since December 31, 1999, a $10,000 investment in gold has netted $55,448 in profits, while $10,000 in stocks has netted only $16,621 in the Dow Jones Industrials or $15,569 in the S&P 500. In the last 21 years, gold is the “golden constant,” while the makeup of the stock market indexes changes from year to year.
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