This week’s reorganization opened up the opportunity to climb top-notch bullion and miners.
A decline in the price of the US dollar may be our new truth in 2021 and a catalyst for additional gains on valuable metals.
Contrary to the conclusions of many classic economic histories, metals are still undervalued in relation to printing and debt issuance.
I know investors in precious metals are licking their wounds after Tuesday’s massive drawdown in price. Numerous writers on Seeking Alpha have been warning of such a sell-off since the latest upmove began almost two years ago. I was one of a handful of outspoken writers on this site advocating oversized weightings to gold in the summer of 2018, when the Wall Street pundits were talking about sub-$1000 gold as a given, since the price was under pressure at $1200.
I really put the best gold odds of $2000 in a quick order in one of the titles of my items here. The challenge of waiting for a primary correction is that you may miss out on long-term gains, preparing for the inevitable washing. In the end, the annualized upward trend of 8% of gold since we left popular gold in the early 1970s is quite similar to the relentless annualized 10% retracement of the inventory market during the same period. As long as the Federal Reserve continues to print cash and the U.S. Treasury continues to borrow cash, it is likely that either advances when measured over time.