Managing Partner at Goehring & Rozencwajg Associates, Leigh Goehring, expects gold to reach more than $10,000 an ounce by the end of the decade. “By 2028, gold could be over $10,000,” he told Kitco News. “If gold is over $10,000 and we go back to the 20:1 gold-silver ratio. That’s $500 silver. It will be the decade of shortages, and everyone’s going to get poorer except for the people that own physical gold and silver.” In other news, the Dow Jones Industrial Average fell over 462 points after the CDC confirmed the first Omicron case in California.
Kitco News/Anna Golubova
Gold price at $10k, silver at $500 due to ‘a decade of shortage’, says Goehring & Rozencwajg
This will be a “decade of shortage” defined by high inflation and a failed attempt to raise rates – the perfect combo to trigger a massive rally in gold, said Goehring & Rozencwajg Associates managing partner Leigh Goehring.
Next year, inflation could already be pushing 9%, and it could get a lot worse, Goehring told Kitco News in an interview.
“We’re getting closer to the explosion of gold prices to the upside. I’m a big believer that inflation is not going away. It’s going to continue to be a problem. We could be looking at a black swan event in inflation. It could be an oil shock, natural gas shock or agricultural shock,” Goehring said.
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Fox Business/Anna Golubova
Dow sinks 462 points as omicron US case rocks stocks
U.S. stocks got whipsawed on Wednesday after the CDC confirmed the first U.S. case of omicron in California.
The Dow Jones Industrial Average fell over 462 points or 1.3% surrendering gains of over 300 points earlier. While the S&P 500 and the Nasdaq Composite sank 1.3% and 1.8%, respectively.
This as the VIX, the so-called fear index which measures volatility, spiked to the highest level since March.
The Federal Reserve’s Beige Book, released at 2 pm ET, showed several regions reported supply chain issues and bottlenecks as possible retraining economic growth.
“Supply-chain bottlenecks continued to drive up costs and prices rose” the statement noted.
During day two of his testimony to Congress, Powell insisted any acceleration of the tapering plans would not disrupt financial markets.
Continue reading, here.
AP via Yahoo Finance/Lisa Mascaro and Kevin Freking
Lawmakers reach deal on spending bill, but hurdles remain
Congressional leaders reached an agreement Thursday on a stopgap spending bill to keep the federal government running through mid-February, though a temporary shutdown was still possible with some Senate Republicans holding out over the Biden administration’s COVID-19 vaccine mandates for some workers.
The House was expected to take up the spending measure later in the day. It would extend spending to Feb. 18, keeping it at current levels, though $7 billion is included to support Afghanistan evacuees.
Rep. Rosa DeLauro, D-Conn., chairman of the House Appropriations Committee, had been pushing for the legislation to cover a much shorter time period, but Republicans were insistent that more time was needed to work out differences on a spending bill covering the entire fiscal year.
“The end date is February 18. While I wish it were earlier, this agreement allows the appropriations process to move forward toward a final funding agreement which addresses the needs of the American people,” DeLauro said in a statement.
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