Observations on Gold and Silver at the Halfway Point

“Because gold is honest money it is disliked by dishonest men”
-    Ron Paul

We are halfway through 2024, and it is a suitable time to take stock of where we are in the precious metals markets.

I am sure many gold bulls would be happier to see prices for both gold and silver higher than they currently are.

Not me.

A Quick Start
A quick look at the chart above (courtesy of macrotrends.net), shows two notable events. The first is the four-year consolidation period for gold and silver prices.

Gold consolidated at all-time highs. Silver consolidated at roughly 40% to 50% of all-time highs.

The next event you can plainly see is the breakout in gold and silver prices earlier this year. Gold touched new highs above $2,400 per ounce. Silver touched new recent highs near $31.00 per ounce.

Since then, both metals have succumbed to profit-taking as well as some short-term consolidation prompted by jawboning from Chairman Jerome Powell and a whole slew of Federal Reserve Governors. The most recent comments came from Federal Reserve Governor Michelle Bowman who said interest rate increases were still very much on the table if inflation persists.

Most gold bulls want significantly higher prices, and they want them now.


Again… Not Me
I am happy with the progress gold and silver have made thus far this year. I think it is unhealthy for gold and silver prices to run higher and faster than they have.

We all know the adage, “What goes up, must come down.” I would also suggest that what goes up exponentially, falls precipitously… and often catastrophically.

Patience is a virtue. Gold and silver are virtuous.

Both metals have been stores of purchasing power and real money for millennia. Both have increased in “value” over the millennia as measured with various mismanaged fiat currencies.

As opposed to a short-term moonshot to higher prices, I will always take a stairstep approach where each subsequent low is higher than the previous and where each subsequent high is higher than the previous.

To me, that is the prototype for a healthy and sustained rally. And that is exactly what gold and silver prices are doing right now.

I have no worries about the prospects for this gold and silver rally. Here is why…

Same Old Same Old
Peace has not suddenly broken out across the world.

Social unrest remains unrested.

Interest rates – although the highest they have been in the U.S. in decades – are still nowhere near where they need to be to produce a positive real return after accounting for inflation.

The bull market is just beginning in gold and silver, and they normally last a decade or more.

The gold price will most likely touch two to three times the previous bull market high. Two bull markets ago… $850 per ounce. Last bull market… $1,921 per ounce. This bull market… ?????

My guess is somewhere between $3,800 and $5,700 per ounce (two to three times $1,921).

The Gold/Silver Ratio (GSR) is still hovering around eighty.

And… I have yet to get gold and silver tips from my Uber driver.

These are all things I will be watching as the gold and silver bull market gets long in the tooth. None of them suggest an end to the bull market right now. And that is as expected. The bull market is just getting going.

And there is one more BIG reason this bull market is far from over…


Congress
Nobody… and I mean nobody in Congress has the will power to balance a budget. Nobody… and I mean nobody in Congress has the intestinal fortitude to cut spending. Nobody… and I mean nobody in Congress has enough strength of character to address unfunded promises such as the entitlements of Social Security and Medicare.

That lack of backbone in the halls of Congress ensures our debt will grow over time. That growing debt ensures our money supply will continue to expand. That expanding money supply (also known as inflation) ensures the price of everything in this world that matters will rise over time.

Gold matters.

Silver matters.

Gold and silver prices will move higher in the long run… as they always have.

Success
Success is often defined as the result of preparation meeting opportunity.

If you wish to be successful, and if you are prepared, I have an opportunity for you.

I already mentioned the first part of the opportunity at the beginning of this article. Gold and silver prices have pulled back slightly from their recent highs due to profit-taking and Federal Reserve jawboning.

The second part of this opportunity is the result of the fact that the bull market is just getting underway.

Western investors are not yet participating in this bull market… at least not in a major way. Central banks have been buying. Asian retail investors have been buying.

But the Western investor has been staying put or selling thus far.

As a result, premiums on fabricated coins and bars are low. They will remain low until Western investors join the bull market rally.

So, for those of you who are prepared – meaning those of you who have cash or access to it – the combination of low spot prices and low premiums ensure your success going forward.

Of course, that is only if you buy here and now.

You will be fine buying later, but I am convinced your finest opportunity is right here and right now.

Take matters into your own hands. Be responsible for your own future. Keep What’s Yours!

Call us today at (800) 831-0007 or email us. There are plenty of options for you to get started regardless of your current financial status. Let us help you figure out what is best for you.

Good investing…