Where Gold Prices Are Headed In 2021

By | April 26, 2021

where you get the insights you need to

help navigate these turbulent times

bitcoin and other cryptocurrencies have

rocketed to the moon

commodities are rising sharply and stock

indices set records day after day

but gold it has been dead on the water

for months

leading a lot of observers to declare

that the yellow metal

is no longer a shield against excess

money printing

a victim of high-tech currencies the

skeptics

are wrong there are sound reasons why

gold

has been the best store of value for 4

000 years

more reliable than any other commodity

including the new electronic varieties

the gold supply grows averaging an

increase of nearly 2 percent a year

despite advances in mining technology

that average is held

which is not true of other metals such

as silver or copper

the supply of bitcoin in fact is fixed

gold can’t be destroyed it can’t be

consumed every ounce that’s been mined

is still in existence which means you

don’t have supply shocks

as you would say with wheat if there’s a

drought that sends the price up sharply

gold is easy to store and transport

unlike oil

it can’t be hacked for centuries

countless attempts were made

to replicate the yellow metal in the

laboratory which was called

alchemy the alchemist always failed

which is a contrast to diamonds which

can be artificially created

so why hasn’t the price of gold surged

recently

critics overlooked that the yellow metal

went up around 50 percent between summer

2019

and the summer of 2020 since then

banks have been holding lots of cash as

have consumers

but that is about to change big time

the biden administration is determined

to shovel out the one trillion dollars

from previous pandemic relief measures

that remains unspent it’ll soon try to

ram through congress

another coveted 19 bill of almost 2

trillion dollars

now that number might be trimmed but

will still be a whopper

the white house wants to follow that

with an additional three trillion

dollars for infrastructure

and it wants the federal reserve to

which the fed seems all too willing to

do

as this tsunami of cash floods through

the economy in the second half of this

year and going into next year

inflation will surge and so will the

price of gold

of course washington may try to prevent

a serious inflation by say

jaw-boning banks to reduce the volume of

new loans by the fed paying

high interest rates on banks excess

reserves

Leave a Reply

Your email address will not be published. Required fields are marked *