Is This Another Gold Rush?
Posted on | February 19, 2020 | No Comments
Gold soared past $1600 an ounce yesterday, making it the highest since 2013. Can you say #coronavirus? So what does this mean for the future of gold, silver, and other metal prices? We can try and draw comparisons to the run of 2011, when gold climbed to an all time high over $1900 an ounce, but here’s what I see:
Corona Virus:
It makes me feel sick just to say those words. It used to make me so happy to think of Mexico and beer, but anyway, this is probably the reason for the immediate spike. In fact, Chow Tai Fook, the world’s second largest jeweler behind Tiffany & Co, is closing fifteen Hong Kong locations, (a fifth of it’s total in Hong Kong) and even cutting staff in their North American brands that include Hearts on Fire and Memoire. We don’t feel it over here, but China is such a big consumer of not just jewelry, but all consumer goods, that this puts a big hurt on the global economy.
Election 2020:
Who knows what’s going to happen in November, and everyone is freaked out about the current state of US politics, so it seems to be a very ripe time for investors and doomsday preppers to buy and hoard gold, silver and other precious metals.
Gold acts as a hedge in unstable markets, and as the stock market surges, it’s soon to go down, and that’s where our little yellow friend makes her run.
Everyone loves charts so let’s look at 10 year gold:
Conclusion:
I hope to be looking at this post in a week, month, or year and saying, “Wow I can’t believe gold was so low!”
The truth is no one knows and we don’t have a crystal ball. There are two things I do know:
- If gold hits $2000, Samuelson’s will be very busy.
- If it doesn’t, we’ll be here waiting for the next party…
CLICK HERE TO SELL YOUR GOLD, SILVER, & PRECIOUS METALS
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