The circumstance of stubborn inflation, elevated political conflicts, and overpriced stock and real estate markets creates an ideal scenario for gold.
The kooks were indeed right. Those that called for higher prices -higher than what most mainstream investors would believe- were proven correct.
After rebounding in Q2, the gold price succumbed to the pressure of sharply rising Treasury yields in Q3, when the Fed began talking about tapering asset purchases
History says the next upsurge in gold and silver is coming. The research clearly shows it is a when question, not if.
The most likely scenario for the second half of 2021 is one where gold continues to offer a meaningful and necessary hedge, along with the distinct possibility of yet another set of record high prices.
It takes only a rudimentary understanding of economics to know that the more you create of something, the less valuable it becomes
The new Net Stable Funding Requirement (NSFR) rules under Basel III for gold come into force at the end of this month.
Gold and silver prices peaked in August 2020, and have since been largely range-bound.
We update our charts every year on how many ounces of gold and silver it takes to buy a house in the US.
The most likely scenario for the remainder of 2021 is one where gold and silver continue to offer meaningful and necessary hedges, along with the distinct possibility of record-high prices.