We at Jalonom have been closely monitoring the development of gold and silver prices day by day, week by week, and month by month this year as well. The eventful year 2023 is soon coming to an end for precious metals as well. Gold and silver were both popular investment options in 2023. Global events and the state of the world economy often directly reflected in the prices of gold and silver. However, both metals rose during the year, thus providing investors with protection against the risks posed by economic uncertainty and inflation.
As every gold investor surely knows, the price of gold has fluctuated significantly since the beginning of 2023, when it was around 1800 USD/oz, and climbed to a new historical price record of 2148 USD/oz in December. Since then, it has come down slightly, but there is currently an annual increase of about 13%.
Silver investors have also had the opportunity to follow a volatile drama, especially towards the end of the year, as the price of silver rose above 25 USD/oz in December, following gold. However, it did not manage to reach the previous spring price peak of around 26 USD/oz this time. There is currently an annual increase of just under 3%. Many who have followed the price of silver for a long time have gained new momentum and interest in silver as an investment option from these developments.
The past year is soon to be packaged as history for price watchers, so attention must be directed towards the future and the new year 2024. The outlook for gold and silver markets remains positive in 2024. Both metals are likely to rise and continue to be interesting investment options for investors seeking a safe haven or diversification in their investment portfolios.We explored four current articles (EN) on precious metals from around the world and compiled a summary of the soon-to-expire year 2023 as well as outlooks for the new year 2024:
- Nasdaq: Analysts believe in the rise of gold and silver as interest rates fall and geopolitical tensions rise.
- Investorideas: The silver boom is heating up.
- Dailyreckoning: Gold at $15,000?
- Finder AU: Silver is a stable investment option in 2024.
Use the new year 2024
In an article by Nasdaq, analysts predict that gold and silver are likely to rise in 2024. They point to several factors supporting this view, including general economic uncertainty, rising inflation, and geopolitical tensions. Analysts believe that gold is a good choice for investors seeking a safe haven, while silver is a good choice for investors looking for diversification and the potential for higher returns.In an article by Daily Reckoning, James Rickards makes a bold claim that gold could rise to as much as $15,000 per ounce in 2024. Like Nasdaq, Daily Reckoning points to general economic uncertainty, rising inflation, and geopolitical tensions. Additionally, the latter highlights the discrepancies between supply and demand for gold. Rickards bases his forecast on technical analysis of three previous bull markets. The article is, of course, speculative, and it is difficult to say how likely it is that gold will reach this level and when. However, the journey to $15,000 per ounce could unfold as follows, according to Rickards:
For this purpose, we assume a base price of 2000 dollars per ounce, which is essentially the price at which gold is currently. Moving from 2000 dollars to 3000 dollars per ounce is hard work. It is a 50 percent increase and can easily take a year or longer. From there, the increase from 3000 dollars to 4000 dollars is a 33 percent increase, another significant rise. The increase from 4000 dollars to 5000 dollars is a 25 percent increase.
But note the pattern: each increase is 1000 dollars per ounce, but the percentage increase drops from 50 percent to 33 percent to 25 percent. This is because the starting point is higher, while the 1000 dollar increase remains constant. Each 1000 dollar jump has a smaller (and easier) percentage increase than the previous one.
This pattern continues. Moving from 9000 dollars to 10,000 dollars is only an 11 percent increase. Moving from 14,000 dollars to 15,000 dollars is only a 7 percent increase. Gold can rise by 1 percent a day, sometimes 2 or more.
At gradually higher prices, we see the same 1000 dollar increase [...], but the percentage increase is smaller and the threshold is therefore lower. For example, moving from 99,000 dollars to 100,000 dollars is about a 1 percent increase. These 1000 dollar increases become easier over time.
Hopean new year 2024
Investorideas writes in its article about the demand and supply of silver in 2024. The article states that the demand for silver is likely to rise for the following reasons: the growth in demand for electric vehicles and other renewable energy technologies, rising inflation levels, and geopolitical tensions. The article also notes that the supply of silver is likely to be stable or slightly declining in 2024. This is due to the fact that silver production has slowed down in recent years. Finder examines silver as an investment in 2024. The article states that silver is a good choice for investors looking for diversification and the potential for higher returns. The article also notes that the risk associated with silver is greater than that of gold, as silver prices are more volatile. This is because the demand and supply of silver are more sensitive to economic changes than the demand and supply of gold.Summary
Gold is traditionally considered a safe haven because its value is relatively stable. Gold is also a good diversification for an investment portfolio, as it does not strongly correlate with the stock market. Rising inflation levels diminish the value of other investment assets, such as stocks and bonds. In contrast, gold tends to retain its value better during inflation. In 2024, gold markets are likely to be on the rise.Silver is less valuable than gold, but it is still a popular investment asset. In 2024, silver markets are also likely to be on the rise. Silver is widely used in industry, so its demand is relatively stable. The demand for electric vehicles and other renewable energy technologies is increasing, leading to a growing demand for silver. Rising inflation levels also contribute to the increased demand for silver, as silver is used in jewelry and other consumer goods.
In summary, all four articles predict that gold and silver are likely to be on the rise in 2024. The articles point to several factors supporting this view, including increasing overall economic uncertainty, rising inflation, and geopolitical tensions.
The Google Bard service has been utilized in the compilation of the article.
