Gold dropped $75 on Friday, January 8, from $1,910 to $1,835, driven by a dollar recovery and higher U.S. Treasury yields, as the 10-year Treasury bond yield finally climbed above 1%. However, gold had gained a quick $115 in December, so this sudden drop merely took gold back to mid-December prices Gold recovered $10 on Monday morning. If that sounds volatile, it is, but consider that in one week Bitcoin rose from $31,000 to $41,000 and then fell back to $31,000 on Monday.
Continue reading "2020 Update, Part 2: Silver Topped All Other Investments in 2020"
As we close the book on the Trump years, it was a good time for both gold and stocks. Gold grew from $1,146 at the end of 2016 to $1,891 at the end of 2020, a 65% gain. Silver grew 63%, from $16.24 to $26.48. Despite New York Times columnist Paul Krugman predicting the stock market would crash after Trump was elected, the Dow gained 70%, from 18,000 on election night to 30,600 at the end of 2020. That was a p silver and r ke for gold, silver and the stock market? etty successful run for all three investments, helping investors’ portfolios grow.
Now, what do the next two to four years look like for gold, silver and the stock market?
Continue reading "The First Two Biden Years Should Be a Bonanza for Gold and Silver"
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.
Continue reading "Precious Metals Soar as 2021 Begins"
The year just completed, 2020, was a year in which most markets rose by double digits, fueled by an unprecedented infusion of cash from the Federal Reserve and the U.S. Treasury. The Federal Reserve added over $3 trillion to its balance sheet in under four months, from mid-March to June 30, increasing liquidity to the investment community through bond purchases, while the U.S. Treasury added a similar amount in stimulus packages to the American people. Since many businesses were closed and travel was restricted, most Americans did not spend this money on goods and services, or on travel and leisure, but on investments. As a result, Bitcoin soared, as did global stock markets, residential real estate and other investments.
Continue reading "2020 in Review – Silver Beats all Stocks (and Other Metals) While “Asset Price Inflation” Soars into Double-Digits"
We’re off to a great start in 2021, but we won’t let that sway our previous forecast for 2021, made in the second week of December. We may be too conservative, but here was our forecast back then:
For Gold, I predict a six-month goal of $2,200 and a peak price of $2,350 in the second half of 2021.
Silver often acts like “gold on steroids” during a bull market, so I think it can exceed $30 this year, with a 30% gain to $32 per ounce, based on rising industrial use in solar panels plus rising investment demand.
Continue reading "Predictions for Gold and Silver in 2021"
