Gold and Silver Investment Outlook
The FED has been continually injecting close to $150 billion dollars a day into the lending markets as an attempt to create the illusion of stability. In all reality, they are just artificially keeping Wall Street fat and investors complacent. This leaves most of us scratching our heads wondering…what is the most accurate investment outlook for 2021?
Meanwhile, the central banks, a prolific division of the FED, is amassing massive amounts of physical gold and silver. This became published in 2008 but the extent of it is still unknown. We do know the majority of these safe haven assets are being held in military bases and are being purchased in the most anonymous, untraceable ways. The FED does not want the world to know how much physical gold and silver the central banks hold. They want to create the illusion of a strong market, jobs on the rise, trade deals with China, but ultimately, they want you blinded by the light.
Hard working Americans and savvy investors alike are catching wind of what is happening. Between the bank outages of the past few months, and all the talk of liquidity crisis and potential “civil unrest”, intelligent or the “fool me once, shame on you, fool me twice, shame on me” type of person is now looking to own physical gold and silver. Both metals are brilliant in their own fashion and certainly safe haven hedges against this almost criminal level of quantitative easing so the question becomes…
Historically, commodities as a whole, move in tandem. They perform best in periods of inflation or deflation and are generally inversely correlated with the stock market. This has always been the case until now. For silver, trade negotiations are a critical risk. Silver is massively vital as an industrial metal, and plays a huge role in sustaining and creating growth to the tune of three trillion dollars as China is spending developing smart grids and infrastructure. Global yielding negative debt creates a perfect backdrop for both safe haven investments but still, what has more immediate upside and most importantly, offers protection and insurance against a dying fiat currency?
The macroeconomic climate is the ultimate indicator here. Both metals are going to go to unprecedented levels and gold may very well, become a reserve currency or part of a basket of reserve currencies. In other words, it has massive monetary value and is stable, viable, indestructible, and has been around for thousands of years as a result. A concern for silver came in August and September when gold made a massive surge, and although silver went up as well, it became clear to me that both metals are pivotal nest egg saving positions.
Due to the immediateness of what this country is facing with respect to hyperbolic inflation, bonds and banks so leveraged, currency is already a fugazi. It appears that gold will make a strong move in the next six to nine months and will keep going up from there. Bloomberg flat out said five years from now, gold bullion would be at $20,000 per ounce. It is de facto currency and people trust it, love it, understand it, and it can not be taken from you. Silver should stay steady and if Wall Street implodes and most Americans hit the poor house, silver will keep you above water, feet touching the ground.
When worldwide growth becomes truly prolific, as any emerging market grows, so will silver. It is impossible to live our lives without silver. It is used in everything from batteries to wind turbines to probably your desk chair. I stay away from predictions but if gold and silver are a marriage, the movement will support one another and be harmonic for the people who take positions. Gold should make a strong bold move and could finish the year at $2000+ an ounce.
Three or four years down the road, when massive growth in emerging markets has made them silver dependent, we could be looking at $200 per ounce spot prices for silver. You can’t have one without the other but for now, just to protect yourself from what we are all waiting for, gold takes the cake and this is where you should take action. Right now our immediate dangers are monetary based so gold will not only get you through, but should make you very wealthy as well. Silver will hold steady, and strategists at TD Securities see it finishing the year around $35+ per ounce.
China’s Rise and the New Age of Gold
How Investors Can Profit from a Changing World
The radical change coming to the global economy—and the investments you need to make sure you stay ahead of the curve.
China’s growing role in the global economy is showing no sign of retreat. Indeed, recent events have only increased China’s influence—to the point where China is poised to edge out the United States and take the lead. For investors like you, this tectonic shift poses difficult challenges—along with tremendous opportunities.
In China’s Rise and the New Age of Gold, one of the 21st Century’s top economic experts, Stephen Leeb, lays out his compelling argument that explosive gains in gold lie ahead. Gold’s price will increase dramatically to as high as $20,000 an ounce. Investing in gold will be the best (and perhaps only) way to generate substantial investing profits in this decade and beyond.