Looks like the four month correction for Gold prices has ended and Gold prices are rising again. Silver has also had a terrific year up almost 35%. Meanwhile some Stocks are hot, but the DOW Index is barely up 5%.
Here’s a quick look at Gold prices—
* U.S. Gold futures peaked on August 3rd over $2,027.
* From peak to trough, Gold corrected almost 15%.
* Gold under $1,900 an ounce today feels like a bargain.
* We feel Gold will end 2020 at 25% higher.
Nothing Stopping Gold From Going Up Here
The Presidential race combined with the Covid Pandemic Crisis have had Stock Markets, Bond investors, Oil shareholders, and even precious metals traders wondering which way is up!
The massive Federal Reserve intervention in the markets prevented a total crash back in March after investors worldwide panicked and fear spread like wildfire. Market makes we’re save when the Fed came to the rescue.
What’s Up With Gold?
For several weeks now, any good news about a Covid vaccine sent bad news through the Gold price. We were very surprised. Whether there’s a vaccine tomorrow or in Summer 2021, the damage done by Covid will continue to reverberate in a positive way for hard assets.
It’s not how many people who get sick that will drive up the Gold price. It’s how permanently damaged the world economy is and how much money will have been spent on the financial ramifications.
Will $10 Trillion Be Enough… Nope!
The world’s Central Bankers have unleashed over $10 Trillion Dollars of freshly printed money on the world. Something like $7.5 Trillion flowed out of Washington and Fed.
Now if this $7.5 Trillion came from some secret U.S. bank account, we would be thrilled. But, the Federal Reserve created every dime out of thin air. Yikes! Never in the history of mankind has so much phony money been pushed out of central banks.
We can almost guarantee there will be significant consequences to these actions including—
* The value of the U.S. Dollar will be permanently damaged.
* There will be inflation exceeding 5% long before anyone imagines it.
* Most people will not have put away a little Gold and Silver for a rainy day.
* The consequences of the election will ripple through the markets with higher taxes and more debt piling up.
More Stimulus Coming
A key trigger to move Gold and Silver much higher will be another round of stimulus in the $1 Trillion to $2 Trillion Dollar range. It’s coming— and soon.
Any further stimulus should convince everyone that the worldwide economic damage to GDP growth will absolutely result in lower sales and damaged profit forecasts for major companies extending well into 2021.
Covid Wave 2 Severe Damage Still Ahead
Even as we write in early December, the number of Covid cases are rising to three times earlier highs. Lockdowns are again in place across America. The most severe STAY-AT-HOME orders are back.
With an estimated 10 million Americans traveling over the Thanksgiving Holiday, we can almost guarantee Covid cases off the charts over the next 14 days.
Just because there are great vaccines on the way does not stop the spread of the Coronavirus nor will it vaccinate your portfolio from a potential series of Stock shocks.
Fear has no limits. Computer trading could easily trigger another panic attack. Be careful with your health and portfolio as we move to the end of the tear. Buy Gold, Buy cheap, Buy now.