- Kitco: Wall Street favors silver on the brink of Basel III
- ABC Bullion: The gold bull market is just beginning
- Kitco: The luster of gold will remain even if interest rates start to rise: a buying opportunity
Kitco: Wall Street favors silver on the brink of Basel III
Both gold and silver price developments have been stagnant since the rise in April and May. Internationally recognized analyst Chris Vermeulen says that now is the time to buy silver. According to Vermeulen's price modeling system, silver, which has remained below the resistance level of $28.50, is waiting for an opportunity for a significant rise and could reach a peak of $40–44 by December 2021. And this would be just the first major price increase in the next 2–3 years. Vermeulen himself believes that the rise in silver will begin either in July or at the latest by early August.The likelihood of a price increase in July is supported by many variables, such as the BASEL III regulations coming into effect in late 2021 and the actions of the U.S. and other central banks to curb inflation and support growth. These could significantly raise the prices of silver and other precious metals.
For precious metal investors, this means, according to Vermeulen, preparing for new opportunities.
Read full article in English /June 21, 2021, Chris Vermeulen
ABC Bullion: The gold bull market is just beginning
Shae Russell interviews legendary commodity investor Rick Rule, who shares three reasons why the gold bull market is just beginning. They start their discussion by commenting on the current state of gold. Rule warns that the current bad news may still persist: the bull markets he experienced from 1970 to 1980 and 2000 to 2011 also included sharp cyclical declines. These are an inherent part of bull markets, but he also understands that the less experienced may be frightened by them. However, this bull market differs from previous ones because, so far, the biggest leaps have occurred among smaller players rather than the top five. Rule speculates that this is due to younger speculators who are more closely following market narratives.Rule emphasizes, however, that we are only at the beginning of the bull markets. This is supported by three key factors: The first is the massive quantitative easing practiced by governments, which he bluntly calls counterfeiting. The second factor is the outrageous budget deficit of the government. The U.S. federal debt is $28 trillion (not even including larger off-balance-sheet debts), and the budget has an annual deficit of $3 trillion. The third key factor is the negative real interest rate, which is eroding the value of U.S. 10-year treasury bonds.
Rule does not believe that gold challenges the existence of the dollar, but it does not need to: it remains an attractive investment regardless of the dollar's development.
See full video in English /June 2, 2021, Shae Russell
Kitco: The luster of gold will remain even if interest rates start to rise: a buying opportunity
Investors sold a lot of gold in June after the U.S. Federal Reserve's economic forecasts indicated two possibilities for raising interest rates during 2023. Gold's position wavered as its August futures prices dropped over 4% in a single day. Nevertheless, George Milling-Stanley from State Street Global Advisors says that gold is worth buying. According to him, the markets are panicking over rising inflation and interest rates, not realizing that any increase will not happen for at least another two years.Many of the Fed's predictions depend on inflation trends, and Milling-Stanley does not believe that central banks will raise interest rates if inflation falls back to the 2-3% range. Our economic system is recovering from an unprecedented event, so no model can directly predict the future.
Gold can maintain its luster even if the Fed starts a new cycle of interest rate hikes: The last time it tightened rates was between 2015 and 2018. Gold's value was expected to drop, but it actually rose by 21%. Interest rates must also remain low to finance President Biden's $6 trillion budget program.
Read full article in English / 17.6.2021, Neils Christensen
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 weekly basis. We particularly focus on news related to investment gold.
