Gold is now decisively above $2,000 but look at why silver is ready to explode higher.
Gold Decisively Above $2,000 But Look At Silver
April 4 (King World News) – Otavio Costa: Gold decisively moving above 2,000 and approaching new highs. Silver just broke out from a recent resistance and still needs to double in price to re-test its record levels from the 1980s.
Silver’s Multi-Decade Cup & Handle Formation Looks Ready To Blastoff
While the cup and handle may look technically appealing, it’s the plethora of macro drivers that is the true support of the precious metals’ thesis.
* Central banks being forced to buy gold to improve the quality of their FX reserves;
* Global gold production likely entering another secular decline and supporting the supply case, similar to the 1970s and 2000s bull market;
* Failing 60/40 portfolios looking for haven-asset alternatives;
* Inflation likely running higher than the historical average for this decade creating a need to own tangible assets;
* Commodities being historically undervalued relative to financial assets;
* The percentage of yield spread inversions in the US Treasury curve breaching the 70% threshold, making a strong case to own gold and sell overall stocks;
* The ultra-conservatism by major mining companies returning more capital to shareholders than investing in current/future production of precious metals;
* Lack of new gold and silver discoveries due to chronic underinvestments in exploration and the natural geological challenges to finding new mineral deposits;
* ESG mandates and government pressure against the development of new resource projects; Institutional investors demanding gold companies to focus on green metals rather than gold-only projects;
* Record pessimism on precious metals due to interest in digital assets and unwarranted skepticism towards the credibility of gold and its history as a true monetary asset;
* The fact that the US and other developed economies are facing a trifecta of macro imbalances:
1) The debt problem of the 1940s
2) Speculative environment of the late 1990s
3) Inflationary issues of the 1970s
The list of long-term positive drivers could be even longer, but investors can hopefully appreciate the strength of this thesis and how early it could be…
ALERT:
Billionaire mining legend Pierre Lassonde has been buying large blocks of shares in this gold exploration company and believes the stock is set to soar more than 150% in the next 6 months. To find out which company CLICK HERE OR ON THE IMAGE BELOW.
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Stay Long Gold & Silver
Peter Boockvar: The euro/yen heavy US Dollar Index today is breaking below 102 and if we get under 101.20 that would be the weakest level since April 2022.
US Dollar Index Has Now Broken Below Critical 102 Support Level
While the dollar has pretty much been trading off expectations of Fed policy over the past few years as its sole influence, we have to wonder when the deteriorating US financial condition, as seen with the US budget deficit at 6.2% of GDP as of February 28th even before the recession really kicks in, becomes a factor too.
Dollar Being Replaced In Global Trade
Also, we’re seeing more FX agreements between countries that want to use the yuan and other currencies with terms of trade rather than the US dollar and my email inbox gets filled with ‘the end of the dollar reign…’ but call it more diversification away from the dollar that will take decades to play out and the US dollar will still reign supreme as the reserve currency, albeit somewhat less so over time and they could have some other peers. Stay long gold and silver…
This Company Has A Massive High-Grade Gold Project In Canada And Billionaire Eric Sprott Has A Huge Position! To Learn Which Company Click Here Or On The Image Below.
Gold About $30 From A 5,000 Year High
I just don’t see the Fed hiking rates in May or any time thereafter in this cycle. The dollar is getting further slammed and gold is ripping higher as is silver. Gold is about $30 from a 5000 yr high.
ALSO JUST RELEASED: GOLD & SILVER BEING UNLEASHED: Gold Price $30 From Hitting 5,000 Year High CLICK HERE.
ALSO JUST RELEASED: Gold Approaching Massive Cup & Handle Breakout, Plus Look At This Inflation Catalyst CLICK HERE.
ALSO JUST RELEASED: Gold Surges Above $2,000 Ahead Of The Collapse Of The Super Bubble CLICK HERE.
ALSO JUST RELEASED: Greyerz Just Warned The Everything Collapse Is Going To Devastate The World CLICK HERE.
***To listen to Gerald Celente discuss the death of the dollar and gold skyrocketing CLICK HERE OR ON THE IMAGE BELOW.
***To listen to Alasdair Macleod discuss the silver squeeze and the lack of available physical silver supplies CLICK HERE OR ON THE IMAGE BELOW.
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