By Sean Kelly
The Growing Bull Market Consensus of Higher Gold Prices and Silver Prices!
As 2021 gets underway, an import consensus is emerging that gold prices and silver prices will power substantially higher this year. We will feature two examples of this view, both from credible European sources.
The first report calls for gold prices to climb to $2,300 this year, with silver prices pushing up to $40 an ounce.
The second calls for gold to reach $2,450 this year. It, too, calls for silver to outperform gold, rocketing to $47 an ounce this year.
The analysis of each concludes independently that the gold and silver bull market is alive and not just well, but robust.
We think it important to share informed views from beyond the borders of the US, where the dollar is viewed objectively as one currency among others. Said differently, such analyses are not colored by the pride of the issuer.
The first forecast comes from MKS PAMP Group based in Geneva. PAMP, (Produits Artistiques Métaux Précieu) is one of the world’s leading gold refiners and fabricators. Its 2021 Outlook says that this will be “another year of growth for precious metals. The global economic instability, low yields, the risk for higher inflation and more downside pressure on the USD remain some of the major factors supporting the well-established bull trend. We also expect a recovery in the international commodity trade and increased physical demand especially in the second half of the year.”
While calling for an average gold price along the way this year of $2,072, it concludes specific terms, “We expect gold to hit a new all-time high at 2,300.00 USD/Ounce.”
The MKS silver forecast is even more bullish “We see silver averaging 32.50 USD/Ounce and to peak at 40.00 USD/Ounce in 2021.”
Joining in on the bullish consensus is Degussa, a major German bank headquartered in Frankfurt, with operations in Zurich and across Europe. We have followed the firm’s chief economist, Thorsten Polleit, because of his sound money outlook.
The Degussa report on today’s conditions reads, “The important point is that the unbacked paper money system has a dynamic of its own. Global debt has reached a level where it is no longer likely that central banks will allow interest rates to rise for the foreseeable future, and central banks will continue to finance government spending sprees willingly. Taken together, it does not take much to realize that the purchasing power of the US dollar, euro and other currencies will be further debased in what lays ahead. It is against this backdrop that we remain bullish on precious metals.”
Degussa concludes “that the price of gold could reach 2,450 USD/oz towards the end of 2021 (based on current prices, a 32% gain); the silver price could go up to 47 USD/oz (+87%).
Because our focus is on the fundamentals of US fiscal and monetary policy – the artificial creation of money and credit by the Federal Reserve and deficit-financed spending by Washington – we find the growing consensus expressed by these reports and their forecasts for higher gold and silver prices to be readily within reach.
Indeed, we will offer the additional observation that increasingly radicalized swaths of the American public will now press their spending demands on the Democrat government in Washington which now controls the presidency and both houses of Congress. This makes it impossible to know exactly when things will hit an inflection point and turn the charts of gold and silver prices straight up like a hockey stick. But under today’s conditions it could happen at any time.
Then all bets are off on just how high the metals will go.
Learn how you can take advantage of precious metals to protect your savings here.