E.B. Tucker, Director of Metalla Royalty, told Kitco News he thinks silver will “go crazy” in 2022 and that gold will once again hit $2,000 per ounce. “Everybody is a speculator, and so next year, I expect this speculation runs out of gas,” he said. In other news, The New York Times is drawing parallels between how the 2020s economy could resemble the 1980s. Apparently, it depends on whether Fed Chairman Jerome Powell can pull a reverse Paul Volcker.
Kitco News/David Lin
Silver will go ‘crazy’ in 2022, gold to break $2k again, speculation will end – E.B. Tucker
2022 is the year speculative money recedes from the markets, said E.B. Tucker, director of Metalla Royalty.
“Everybody is a speculator, and so next year, I expect this speculation runs out of gas. There’s no more stimulus check coming. There’s more liquidity coming into the average person’s pocket. They got a raise this year, but everything they’re buying is going up in price. Sales are slowing down. The refinance boom is slowing down,” Tucker told David Lin, anchor for Kitco News. “Next year, you’re going to see a rotation out of [stocks] and you’re going to see a move into something real.”
Tucker predicts that next year, silver will “go crazy” as capital rotates into precious metals.
Watch the full interview, here.
New York Times via Finance Commerce/Neil Irwin
How the 2020s Economy Could Resemble the 1980s
It is easy to recall the 1980s as being a boom time for the United States economy — a time of gleaming excess that, among other things, powered Ronald Reagan to a landslide reelection in 1984.
But the decade didn’t start out quite so sunny. And understanding the history of how the economy went from bust to boom in the early 1980s offers a surprising model for optimism about how the U.S. economy could progress in the next couple of years.
All it would take is for the Federal Reserve to pull off a delicate economic pivot that is the mirror image of the one it managed four decades ago.
Now, high inflation and a seemingly never-ending pandemic are depressing Americans’ attitudes about the economy. By contrast, in December 1981 — when Reagan had been president for 11 months, just as President Joe Biden has now — conditions were by most measures substantially worse. The unemployment rate was 8.5% and would keep rising throughout 1982. Inflation was 8.9%, and indexes of consumer sentiment were abysmal.
You can read the full story, here.
Business Insider/Harry Robertson
The Fed is set to hike interest rates in 2022. Here’s what that means for US stocks.
US stocks have had a banner year in 2021.
The Federal Reserve held interest rates low and pumped more than $1 trillion into the economy, and growth rebounded after the slump of 2020. The benchmark S&P 500 stock index has duly soared by more than 20%.
But sky-high inflation has caused the Fed to sharply scale back its bond purchases, and eye up a number of interest-rate rises next year.
Markets expect the central bank to start hiking in May, given it signaled it’s likely to raise rates three times in 2022.
So is the end of easy money bad news for stocks? History says no.
Continue reading, here.