The gold price is up another 2% since my last update on May 1st, trading today at $1736/oz USD. Analysts are making bullish predictions for the price almost daily and the ETF inflows have been net positive for the last 20 trading sessions.
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.
Although gold and silver both experienced a bit of a dip this week, retail demand for physical products remained strong.
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.
Last week saw the market lose yet another major producer to the COVID virus. The United States Mint, North America’s largest producer of gold and silver bullion products, announced the closure of its West Point, New York facility on Wednesday, due to concerns for their workers’ safety.
This past week was very positive for the precious metals. Not only were prices for both gold and silver up significantly, our industry has also had the chance to catch its collective breath following ‘March Madness’.
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.
This week was a continuation of the ‘new normal’, which is anything but normal. COVID continues to complicate our work and personal lives, including the precious metals supply chain.
Given what’s happening in the markets, it’s time to look at the history of crashes in gold and silver. And just as important, to see what message we can glean about their recoveries.