As we move into the second half of 2020, gold is increasingly likely to serve as an effective and necessary hedge, particularly in light of the Fed’s dovish stance, ongoing geopolitical conflicts, and the risks associated with the recession, stock market volatility, and US election.
The annual data for silver supply is in, and it shows that the structural decline in new supply for the silver market has strengthened.
There are a number of catalysts for silver that could ignite its market over the coming months and years, and it seems inevitable that silver will be a direct beneficiary of the monetary madness that defines the world of central banking today.
Now that it appears the virus is ebbing and things are slowly opening back up, let’s look at how our two favorite investments have fared so far this year. Did gold provide a hedge? How did metals perform against the stock market? And where is the better value now?
In the stock market’s four worst bear markets, ones that included a major second leg down, the gold price has risen every time.
Could it happen again?
We can actively choose solutions that will help us weather the pandemic and its fallout, as well as prepare us for its ending, whenever that may be and however it may look.
Gold is one of the very few asset classes that has risen this year—but the price is still a far cry from the $5,000 to $10,000 levels he’s mentioned. Silver is worse; not only has it fallen this year, most miners can’t even make a profit at current prices.
There are a few times in an investor’s life where, as Jim Rogers once put it, you see a pile of money sitting in a corner and you can go pick it up.
It came almost out of nowhere, a black swan event that engulfed the world. As everyone from citizens to governments scrambled to deal with COVID-19, the gold industry was impacted in unprecedented ways as well.
As many of our readers know, silver supply from mining operations has been in decline.
That decline has just sped up. In a big way.
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