Newsmax TV & Webwww.newsmax.comFREE - In Google Play
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
Tags: record | 2 | 300 | gold | 30 | silver

After Record Week, Next Stop $2,300 Gold and $30 Silver?

After Record Week, Next Stop $2,300 Gold and $30 Silver?
(Volodymyr Pishchanyi | Dreamstime.com)

Peter Reagan By Friday, 31 July 2020 08:11 PM Current | Bio | Archive

Gold and silver’s recent climb has our customers talking, and for good reason.

Gold’s ascent over the past year, with a pronounced jump in the past two weeks, as the yellow metal soared to a new all-time high.

CBS News couldn’t figure out what caused the price to soar, calling it a “mystery.” That led Jim Bianco of Bianco Research to sarcastically quip, “Guess trillions in money printing is also a mystery.”

Bianco was most certainly talking about the Federal Reserve’s recent “moon shot” of essentially printing trillions in cash in a desperate response to the financial impact of COVID-19.

And Bianco isn’t alone in throwing his weight behind gold. Writes Forbes:

Speaking to Bloomberg TV on Friday, emerging markets investor Mark Mobius urged viewers to buy gold now and “continue to buy” as interest rates remain near zero and as COVID-19 continues to impact mine output.

The recent jump in price is unusual for this time of year:

“Ordinarily this is the quiet time for gold—summer doldrums,” said Ross Norman, chief executive officer of precious metals news and information provider Metals Daily. “Well, not this year.”

On an article at ZeroHedge, the possibility for $5,000 or even $10,000 gold was entertained.

But even if gold isn’t going to hit $5,000 or $10,000 anytime soon, the idea that it may go much higher in the near-term isn’t far-fetched.

Georgette Boele at ABN AMRO “sees five major factors providing long-term support for gold prices: a weaker U.S. dollar, low to negative bond yields, growing government debt, aggressive monetary policy easing and strong technical momentum.”

All good reasons that bolster the case for another near-term climb. “Goldman Sachs says gold will surge another 20% and hit $2,300 in the next year, driven by rock-bottom interest rates,” according to Business Insider.

And gold isn’t the only precious metal with a strong outlook. The prospects for silver appear to be just as promising…

Goldman Sachs Says $30 Silver is in the Cards

The last time silver was over $30 was back in 2013. The way things are going, we may soon see that price again.

Going back to the Forbes piece, Frank Holmes believes the recent silver run up is only getting started:

Silver has historically had a higher beta than gold. When gold has gone up 10 percent, silver has gone up 15 percent. The reverse has also been true: When gold has fallen 10 percent, silver has fallen 15 percent.

To add support to this idea, Goldman Sachs just raised its silver price projection by 36%, to $30.

ZeroHedge explained why there is potential for Goldman Sachs’ forecast to come true.

Silver has been rocketing up ever since its lows in March, just as Goldman Sachs alluded to.

If the Federal Reserve can’t (or won’t) steer the ship back on course, gold and silver bugs seem to be positioned pretty well.

Time to consider hedging your bets now.

As Dollar Optimism Evaporates, Now is the Time to Prepare

Who knows what confused lawmakers or the Fed will do next to mitigate the uncertainty, unemployment situation, or dollar disaster? Don’t wait for them to figure things out.

With gold and silver taking off, one thing you can start doing is make your savings more resilient in case the stock market goes sideways.

Peter Reagan is a financial market strategist at Birch Gold Group. As the Precious Metal IRA Specialists, Birch Gold helps Americans protect their retirement savings with physical gold and silver. Discover more by clicking here now.

© 2022 Newsmax Finance. All rights reserved.

Gold's ascent over the past year, with a pronounced jump in the past two weeks, as the yellow metal soared to a new all-time high.
record, 2, 300, gold, 30, silver
Friday, 31 July 2020 08:11 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
Get Newsmax Text Alerts

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved
© Newsmax Media, Inc.
All Rights Reserved