Money & Markets
…this being our January 2021 edition, we offer our forecasts for gold and silver during the coming year. Hint: I hope I am not being overly-optimistic.
While present official numbers remain quiescent at below 2%, we strongly believe the seeds of future inflation have now been laid via virtually unlimited currency creation by various central banks around the globe.
Given the enormous expenditures that are required to bring any mining property into production, the industry can ill afford a regulatory system which, by reversing already existent approvals, can nullify the value of funds already expended.
The ultimate resolution of this apparent contradiction between fundamental news and market performance could provide us with important future clues for gold and silver.
…one thing is certain for the precious metals—these events reflect growing instability—and growing instability has historically been positive for the prices of gold and silver.
When governments are hit by a barrage of such economic news, they usually react by attempting to stimulate economic activity by spending money, as some might say, “like drunken sailors”…