Gold’s (and Silver’s!) Time Has Arrived
The comments below are an edited and abridged synopsis of an article by Adam Taggart
Gold has broken above its previous all-time high, moving up 14% from $1,717 to $1,950.
Silver has performed even better, rising over 55% from $15.75 to $24.50. The gold:silver ratio has fallen nearly 30% to 80:1.
However, much more important than this near-term pop in gold and silver is their future.
Gold and silver have been undervalued for years, given the risks we face in our monetary and financial systems. The metals languished as capital flowed into paper wealth, fueled by central bank liquidity, record low interest rates, and a rampant increase in debt and deficits.
Last year, gold broke above its long-time ceiling of $1,350. Today, a pandemic and +$5 trillion in global central bank liquidity later, and all eyes have turned to precious metals. Gold and silver’s time has arrived. Precious metals are finally back in a secular bull market.
Up for discussion: higher prices to come (money printing and inflation concerns); TINA (there is no alternative); technical analysis (a short-term pullback is likely); will the weak US dollar strengthen; what investors should consider doing now if they don’t own any gold or silver, or if you already own precious metals.
The financial markets are ridiculously overvalued. The Fed and the world’s other central banks are hell-bent on continuing to print more trillions. In the US alone, tens of millions of households have lost their income, while deaths from Covid-19 continue on a daily basis. The upcoming US presidential election is certain to be hotly contested.
The reality is that the future is full of uncertainty, and that will drive the prices of gold and silver much higher.