The effects of unprecedented government spending (of money it does not have) and unprecedented Federal Reserve counterfeiting of U.S. dollars are showing up in the economy with rapidly rising prices.
You're expected to focus only on the symptoms, and then blame everything except The Fed. The Ron Paul Liberty Report focuses on the root of the problem, along with the solution.
Cause and Effect ... Supply & Demand ... These can never be abolished by central planners. Economic Laws and The Market always prevail over bureaucrats.
To believe that politicians can endlessly hand out money that they do not have, and that The Fed can counterfeit trillions of dollars without serious economic repercussions, is to believe in the impossible.
This week we cover the price movements of gold, silver, platinum, US Dollar Index, & the DOW. The Dollar share of global reserves has declined to a 25 year low.
We look at the relationship between the US Dollar & the price of gold in 2021, as well as exploring the bond market and what pressures it could place on the metals markets.
Proprietary analyst & founder of KirbyAnalytics.com, Rob Kirby, returns to Liberty and Finance to reveal how the Fed “forces” banks to accomplish Yield-Curve-Control (YCC) with a can’t-lose deal, at the expense of everyone else, including wage earners, savers, and retirees.
Rob also exposes the Bitcoin workaround China is using to flout US sanctions, driving an outsized surge in BTC transactions and price.
The silver squeeze first started making headlines more than two months ago, but the movement continues today, led by retail investors who continue to snap up physical metal.
Ed Steer of Ed Steer's Gold and Silver Digest said while he commends those who have been buying physical silver, there's a reason their efforts haven't led to a sustained silver price increase.
He explains why and covers much more in this interview.
No longer just standing for delivery on the exchange, the big money players are now actually puling metal off the exchange - and out of the building - in massive amounts never seen before.
Andy Schectman, CEO of Miles Franklin Precious Metals, returns to Liberty and Finance to reveal the NEXT STAGE DEVELOPMENT in the PHYSICAL SILVER INVENTORY GRAB.
Bob Thompson of Raymond James in Vancouver joins us to discuss the recent price action in the precious metals as we look ahead to next week's meeting of the FOMC.
Over 1.6 million oz of physical silver came into the Sprott Physical Silver Trust (PSLV) this week.
So while physical silver is still increasing in PSLV the last 2 weeks the amount of silver coming in is slowing down when compared to the pace of January and February 2021.
Gold is a safe haven for investors in times of uncertainty. Investors rush to accumulate precious metals when conventional paper investments such as stocks decline or experience volatility. For this reason, gold had a good run in 2020 due to the coronavirus pandemic coupled with geopolitical and economic uncertainty.
Investors resorted to stockpiling precious metals to protect their wealth. As a result, the price of precious metals leaped significantly due to a supply deficit. To be precise, gold recorded a 20% increase while silver and platinum increased 47% and 10%, respectively.
Precious Metals Will Perform Better In 2021
After a spectacular year, precious metals are poised to experience solid gains in 2021. According to Phillip Newman, MD at consultants Metal Focus, gold will hit new highs, but silver will see the highest gains. The price of precious metals will strengthen in the first quarter thanks to the low-interest rates and weak dollar.
According to ForexTradingBonus.com, The US economy’s slowdown could trigger a weaker dollar during the first quarter and low corporate earning. Fast economic recoveries s in other parts of the world could exacerbate this situation.
Effect of Economy Recovery on Precious Metals
Investors have been cautious and liquidated their positions, especially due to covid 19 worries.
Luckily, there is a likelihood that many countries will end restrictions and lift curfews with corona vaccine rollouts. This means there is a glimmer hope of economic recovery. Deploying the vaccine against the virus will boost investors’ confidence in assets that record a good performance during economic growth.
Additionally, with the end of the electioneering period, investors can now concentrate on fundamentals and other trading factors. For instance, Inflations threats, negative return on a bond, and massive government debt will continue in 2021, further supporting gold. According to Ros Norman, the Gold price could see a 20-25% increase.
Silver And Platinum Will Outdo Gold
Gold started experiencing growth in 2019 due to a slowing economy. The rally accelerated after the pandemic, hitting a record high of $2075 on August 7, 2020. As a result, the price of gold dipped to around $1900 as investors stopped buying. Although the demand for physical gold-dipped due to shutdowns, a surge was recorded in investment demand. For instance, SPDR Gold Trust, the largest gold-backed exchange-traded fund, recorded a 30% gain, the biggest since 2009.
According to USB Global Wealth Management, it is unlikely that gold will maintain this stellar performance in 2021. In fact, the firm predicts that silver and platinum will outperform gold in the coming months.
Similarly, MKS managing director Frederic Panizzutti points out that all precious metals prices will record solid gains this year. In an interview with Kitco news, he predicts that silver will be the best performer. Panizzutti also says that gold will reach an all-time high at $2300 despite the slow start this year. According to the firm, silver, platinum, and gold will be the best performing precious metals. The lag in silver and platinum could create a gap that will attract investment and speculative interest...