Silver will shine in 2020 with higher prices supported by expanded physical investment and industrial demand.
This is the projection of the Silver Institute in its 2020 Market Forecast.
Jerome Powell went to Capitol Hill this week. During his testimony before a congressional committee, the Fed chair insisted, “There is nothing about this economy that is out of kilter or imbalanced.” In this episode of the Friday Gold Wrap Podcast, host Mike Maharrey takes issue with Powell’s assessment and points out some things that are, in fact, way out of kilter.” He also touches on coronavirus and the markets, consumer debt, and Donald Trump.
This week I went to the SchiffGold office.
Now, you might think, so? I mean, you run the SchiffGold website. What’s the big deal?
Well, it was a big deal because this was the first time I’ve ever actually been to the office. And it’s the first time I’ve met the SchiffGold crew in person.
Gold took a hit on Tuesday but held a key support level and rebounded as the week went on, even as stocks set new records. Why does gold continue to keep showing strength even with all the headwinds? Is it just coronavirus? Or is something else going on? Host Mike Maharrey talks about it in this week’s Friday Gold Wrap podcast.
The silver-gold ratio has ticked back up to historically high levels of late.
As I write this article, the ratio stands at just over 88:1. That means it takes 88 ounces of silver to buy an ounce of gold. To put that into perspective, the average in the modern era has been between 40:1 and 50:1.
In simple terms, historically, silver is extremely underpriced compared to gold.
The Federal Reserve held its first FOMC meeting of 2020. It was mostly met with yawns as the Fed held rates steady, and despite a somewhat dovish tone, indicated that it probably wouldn’t make any moves on interest rates this year. We’ve grown so used to low interest rates that it barely registers that the Fed is actually engaged in extreme monetary policy. Extreme has become the new normal. In this week’s Friday Gold Wrap podcast, host Mike Maharrey talks about it. He also touches on the Q4 GDP report and some interesting gold supply and demand trends.
Many of SchiffGold clients hold silver patiently waiting for a drop in the silver to gold ratio. I am very much one of these patient holders of silver.
For those who aren’t familiar, the silver to gold ratio is exactly as it sounds: the price of gold stated in ounces of silver.
Today the silver to gold ratio is trading at about 87:1. In simple terms, this means it takes 87 ounces of silver to buy one ounce of gold.
Silver tends to get lost gold’s spotlight but there are reasons to consider adding silver to your portfolio as well. The silver-gold ratio remains at historically high levels. Practically speaking, this means silver is on sale. The supply and demand dynamics also look good for the white metal. Demand is up and global mine output fell last year.
There have been financial commentators, pundits, and asset managers who have stated that during periods of stagflation — low real GDP growth and high inflation — silver has underperformed gold. But as Dan Kurtz of DK Analytics shows, that conventional wisdom doesn’t hold up to scrutiny.
While impeachment proceedings kicked off at home President Trump was in Davos, Switzerland, talking up the US economy. He called it the best economy in American history. Is it though? In this episode of the Friday Gold Wrap podcast, host Mike Maharrey talks about the economy, what’s really driving it, and why this might be a good time to think about gold.
Donald Trump and Chinese Vice Premier Liu inked their signatures on the Phase 1 trade deal this week. But was it really a big deal? Or was it no deal? Mike Maharrey talks about it on this week’s Friday Gold Wrap podcast. He also talks about why the gold market seems to be holding steady despite some strong headwinds and the outlook for the yellow metal in 2020.
