Despite the pervasive and omnipresent manipulation of the gold price implemented in the paper derivatives gold market – which in no way reflects the true supply/demand characteristics of the underlying market for physical gold and silver – gold has been the best performing asset over the last 20 years. Silver has been the third best performing asset. Sandwiched in between is U.S. REITs.
The economic, financial and geopolitical factors driving gold’s performance are now strengthening at an increasing rate. Driving all three variables is the ongoing and escalating money printing by the Central Banks, led by the Federal Reserve. It is highly likely that the recent violent attack on the gold price is a precursor to another round of money printing. This scenario is unavoidable regardless of whom or what Party occupies the Oval Office.
This in turn should catapult gold over $2,000 – for good this time. Silver will quickly head over $30. The mining stocks will soar.
In this week’s podcast, Chris (Arcadia Economics) and I discuss the prospects for the precious metals under a Biden Presidency:
Note: I do not receive any promotion or sponsor payments in any form from the mining stock companies I present in my newsletter. Furthermore, I invest in many of the ideas personally or in my fund.