Gold
Another week, another all-time high for Gold. Except for a $2.00 wrinkle at the open, it was straight uphill all week for the yellow metal. Opening trading at $2,360.41 and charging unchallenged through the week into a monster Friday with a close over the $2,400.00 dollar level at $2,414.94. The short-lived pull back from the last $2,400.00 plus achievement exhibits the strength and momentum Gold has with the continued unrest in the Middle East, Stubborn Inflation, and a renewed hope that the Federal Reserve will start interest rate cuts in the Fall. Major Banks and Hedge Funds are lining up to revise their forecasts on Gold. All the adjustments are bullish with the majority of opinions expecting Gold to be between $2,500.00 and $3,000.00 by year's end and a handful of lofty $4,500.00 to $5,000.00 over the next 24 months. It bears repeating that Gold is not only an excellent store of wealth but currently it is trying to tell us something. Gold and the Stock market typically keep an inverse relationship. Both are at all-time highs.
Silver
As good as two weeks ago with a 6% gain was, last week was a monumental trading session for Silver. Opening the week at $28.28 and closing at $31.51, The Shiny Metal gained 11.7% on the week while eclipsing the very important $30.00 psychological barrier. Based on the less than one week pull back off $30.00, Silver, like big sister Gold, has bullish fundamentals and momentum on her side. Considering that in September 2022, Silver was $17.95, that makes the return on the spot price per ounce of 75% to date is one of the best performing assets on the planet. Silver is up 40% since January of this year. Move over Gold, Little Sister appears to be moving out on her terms.
Platinum And Palladium
The breakout of one of the other of these metals mentioned a couple of weeks ago may be underway. Platinum and Palladium seldom perform at parity. And it appears Platinum is breaking away headed to the back stretch. Opening at $997.11, and finishing the week at $1,086.10, the patriarch of the Platinum Family of Metals showed an impressive 9% gain for the session. While Palladium gained 3%, it was the second such consecutive loss to Platinum. Palladium opened at $979.56 and closed at $1,009.85. Both metals put some distance between themselves and their production costs.
Conclusions
Precious Metals enthusiasts are dancing in the streets as their loyalty and patience is finally paying off with hopes on the horizon. Not only have the gains they have made protected them from an historic level of inflation, but the future has never been brighter.
Entities the world over, from Governments, to Banks, to Hedge Funds, to the retiree that is clinging to his/her fixed income, are flocking to the safety of Gold and Silver. Maybe this is why. If you had $30,000.00 in the bank on January 20, 2021, it would be worth about $19,500.00 today. Cash, Savings, or a C.D. If you had the same amount in Gold, it would be worth about $39,188.00. Gold has performed just less than DJIA over the same time period. Gold is insurance on your money. No one is telling you to put all of your money into Gold and Silver. You have insurance on your house, your health, and your car. Shouldn’t you have insurance on your money?
There is never a bad time to buy Gold and Silver. But some times are better than others.
Sincerely,
Doug Pullen, President GMR Gold Companies