Just updated— The DOW vs GOLD vs DOLLAR at year-end 2020.
All markets have been extremely volatile in the past year and there’s no guarantee these numbers won’t be bouncing around in the year ahead. But, as COVID-19 continues to weigh heavily on the U.S. economy, it’s strongly our opinion that trends reflected in this chart will continue.
An interesting note is that the U.S. Dollar lost 6.6% of its value in 2020 which helped to support the Gold price rise of 24,.4%.
With pandemic overhang extending through 2021— U.S. Stocks could go into shock and fall 10% to 15% in a few days. With the weak U.S. Dollar driven down by the extreme money printing last year, Gold should continue to rise and shortly test the all-time high. From there, it’s hard to predict that Gold will again rise 24% this year.
What we will predict is that Gold profits in 2021 will continue to exceed returns from the DOW Industrials and hopefully exceed the S&P 500 and the NASDAQ major indexes.
Who knows? It’s a crazy world.