Silver is the metal of tomorrow and gold benefits from reflation

• Kitco: Silver has a strong future
• Bloomberg: The use price is developing parabolically as the amount of money increases and inflation accelerates
• InvestorPlace: Reflation supports commodity trading and gold benefits

Kitco: Silver has a strong future

Silver's momentum is sluggish, but the analyst has not lost faith in the gray metal. John Feeney, the Director of Economic Development at Guardian Vaults, believes that investors will finally take an interest in silver when the U.S. Federal Reserve's slow monetary policy is revealed to them.
Feeney points out that the current state of the global economy strongly supports precious metals: very low interest rates and government debt cannot be fixed without serious side effects. The industrial demand for silver gives it an advantage over other precious metals: the solar power industry needs it, and the growing electric vehicle industry provides significant room for growth. Feeney predicts that silver usage in electric vehicles will rise to 90 million ounces by 2025. Demand growth will continue as supply remains stable.
Investors should not get caught up in silver's short-term volatility and the current price of €20, but rather see price drops as an opportunity and keep an eye on the long-term bullish trend. According to Feeney, due to these characteristics, silver is clearly stronger than gold in the long run.
Read full article in English / 9.9.2021, Neil Christensen

Bloomberg: Is the use of the price parabola increasing as the amount of money grows and inflation accelerates?

John Paulson, the CEO of Paulson & Co, explains why the price of gold is developing parabolically and why it is worth investing in. He believes it is clear that gold is an excellent investment at the current price, as a parabolic rise is likely on the horizon. This happened last in the 1970s when the economy suffered from double-digit inflation for two years. In a situation where inflation exceeds the returns on long-term bonds and bank interest rates, the value of fiat money begins to decline, and investors want to move away from it to other assets, such as gold. However, there is only a limited amount of investable gold, so due to the law of supply and demand, a large number of new investors also drives its value up. This process feeds on itself, and this is what Paulson means when he talks about parabolic growth. The last opportunity for parabolic growth was in 2009 when the U.S. Federal Reserve began quantitative easing. At that time, however, the Fed also raised banks' capital and reserve requirements, effectively recycling the money back into their surplus reserves. The money never really circulated, so inflation remained low. This time, the situation is different: the amount of money in circulation was 25% higher than usual last year. Therefore, Paulson believes we will also see unexpectedly high inflation. Look full video in English / 30.8.2021, David Rubenstein

InvestorPlace: Reflation supports commodity trading and gold benefits

However, the current economic situation has brought about reflation, which bodes well for commodity trading – and particularly for gold, claims a new study by the World Gold Council. According to the research, gold is the most effective commodity investment because its absolute and risk-adjusted returns are the best across various time frames. The yellow metal is also better suited as a portfolio diversifier compared to other commodities.
The Council's study indicates that gold has performed better compared to both other commodities and real estate funds and inflation-protected securities (TIPS). Gold lagged behind other commodities in May 2020 and has remained there, but according to the Gold Council, this situation is not unusual compared to previous commodity-winning reflations. In past instances, gold has closed the gap during the second or third year of reflation.
Gold benefits from its diverse role as both an investment and a consumption item, and it is not as susceptible to volatility as other commodities. So far, it has performed roughly in line with the S&P 500 over the long term, providing an average return of about 10.8%. Currently, investors are awaiting news from the U.S. Federal Reserve regarding stock purchases and inflation.
Read full article in English / 10.9.2021, Michelle Jones
This is Jalonomi's monthly review of interesting precious metal news from various sources around the world. Our goal is to provide the reader with a concise and quick-to-read overview of the news on a monthly basis. We particularly focus on news related to investment gold.