Precious Metals News: Payday Coming for PM Investors
- Kitco: Pandemic Did a Solid for the Gold Price
- Stansberry Research: Payday Coming for Gold Investors
- FXStreet: Silver Supply Issues Could Mean Large Gains
- Investing: What Makes Silver the Perfect Hedge
Image: Kitco
Kitco: Pandemic Did a Solid for the Gold Price
CPM’s Gold Yearbook predicts both medium and long-term gains for gold. CPM Group vice president of research Rohit Savant thinks gold could rally to $1,995/oz this year, a 5% gain from last year’s closing price. He remains optimistic even though gold currently struggles to make gains.
Even if the pandemic will eventually pass on, it has changed the world and global economy in many ways that benefit gold. The biggest such factors include large sovereign and private sector debts, deficits and loose monetary policies. It is also important to note that some parts of the world could struggle with the pandemic well into 2022.
The gold’s recent weakness is believed to be caused by a surge in the 10-year US Treasury yields and a high US dollar. But fiscal stimulus will eventually force monetary authorities to offset its negative fallout on bond yields, which will support gold in the long run.
Last CPM Group predicts that total gold supply will climb to 131.2 million ounces.
23.3.2021, Anna Golubova
Stansberry Research: Payday Coming for Gold Investors
Stansberry Research’s Daniela Cambone interviews Lawrence Lepard from Equity Management Associates about gold and silver prices, Bitcoin and the US Federal Reserve’s actions in the current economic situations.
Lawrence doesn’t see gold’s current price fluctuations as anything new: historically it’s been hard to break prior highs, which explains why gold has corrected 35% after the August 2020 high of $2080. Personally he thinks the price is very close to bottom and will surge up soon, as the economic conditions are perfect for gold: Fed is trapped in debt, real interest is negative, and the market is smelling the inflation Fed is trying to downplay. He believes that Fed is playing with an empty hand and will be breaking very soon.
Topic then moves to gold and Bitcoin: Lawrence claims to love both and that he dislikes, when they are pitted against each other. Both are so-called sound money with each their individual merits. Thus Lawrence remains confident that the investors will stay interested in acquiring both gold and Bitcoin.
Daniela wraps the interview with a direct quote from Lawrence: “If stock market highs in the face of record unemployment, business failures, and economic pain strike you as unjustified, you are not alone.” He explains that the US stock market won’t necessarily collapse like it did in the Weimar Republic or Venezuela, but the Fed is still about to lose big. And when that happens, gold investors will be paid their due.
23.3.2021, Daniela Cambone
FXStreet: Silver Supply Issues Could Mean Large Gains
Silver is trading under $26 as the markets await testimonies from the US Treasury and Federal Reserve, as President Biden’s planned Green Deal might rock the market and push the silver price higher. Meanwhile rumours of physical supply issues gain weight as investors report difficulties with certain mints.
Data suggests that a significant investment demand is squeezing physical silver stock, which is no surprise due to inflation pressure in the US economy. Fed claims any inflation is only transitory, but global commodity price gains suggest otherwise.
It’s unlikely that the Fed can solve this issue without major changes to their monetary policy, and any sign of its failure would lead to stagflation and a surge in precious metals demand. Ultimately, if Fed continues to inflate the money supply, Steven Knight expects silver spot prices to challenge resistance at the $44.16/oz mark.
23.3.2021, Steven Knight
Investing: What Makes Silver the Perfect Hedge
Korbinian Koller from Midas Consulting explains why he thinks that silver is the perfect hedge against an uncertain future and an excellent investment. He lists that precious metals in general have a history of perfect risk mitigation, silver is an underdog to gold which provides a new edge, the metal is trending and has gained public attention and – last but not the least by any margin – there’s actual proof that demand outweighs supply with a 35% divergence between silver’s spot and physical acquisition prices.
Korbinian uses various charts (see the original article) to point that even if Silver has been consolidating for the last six months, there has been a consistent strength of direction within that consolidation. This week’s Fed announcement has provided strong volume node support and low risk for more silver acquisition.
A 50-year review of a monthly Silver chart shows that Silver can move for substantial distances. At the moment probability favours Silver investors with major upside potential for the long run. Korbinian remains confident that Silver will see all-time highs in the future.
22.3.2021, Korbinian Koller