From Birch Gold Group
This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: Legendary forecaster says to look out for gold in 2020, gold will rise by 6.9% in 2020, and Germans rush to buy gold ahead of bill that could restrict purchases.
Gold is Byron Wien’s early pick for 2020
Although Wall Street veteran Byron Wien will wait until January to release his top 10 picks for 2020, the strategist nonetheless parted with some takes on what to expect next year. Speaking on CNBC, Wien said that he expects a fairly calm year in the markets, and that recent growth figures seem to agree with this sentiment.
Two things that Wien singled out as potential difficulties in 2020 include a possible spike in inflation and a surprise win by a presidential candidate with radically different market policies. However, Wien doesn’t place too much weight on either scenario.
Instead, Wien is primarily concerned with the subdued service rate in regards to U.S. debt. Over the past two decades, Wien notes that the debt rate hasn’t moved up along with the debt figure, which tells the veteran strategist that markets will eventually have to contend with a spike in interest rates even in an economy where they aren’t feasible.
Despite short-term optimism and dismissal of geopolitical turmoil, Wien picked gold as an asset that could be of particular interest in 2020. The metal has most recently recaptured the $1,500 level once again and is looking for a decidedly strong finish to the year.
Analyst: Gold will see a 6.9% gain in 2020
After a gain of more than 15% in 2020, some are calling for gold to climb to all-time highs in 2020. In so many sky-shooting predictions, more modest bullish forecasts like that of TheStreet’s Mark Hulbert tend to get lost. Like many experts, Hulbert sees a good year ahead for gold. Hulbert, however, expects a steadier trajectory than some due to three factors that should hamper volatility.
As Hulbert points out, momentum has been in gold’s favor for most of the year, and investors who are hoping for a price gain of upwards of 30% are betting that this momentum spills into 2020. While historical precedent hints towards gold having strong year-to-year momentum, Hulbert believes this might not be an accurate representation of market dynamics.
Moving forward, Hulbert points to market expectations of low domestic inflation, which eliminates one catalyst for a major price breakout. The lack of contrarian sentiment also suggests a lack of buy signals flaring off in gold’s immediate future.
With these factors in mind, Hulbert sees a calmer route for the metal after a 2019 that brought prices to six-year highs. The analyst expects gold to round up 2020 with an overall gain of 6.9%.
German investors are loading up on gold ahead of legislation that could limit purchases
In 2017, Germany lowered the minimum amount of gold once can purchase anonymously to €15,000, or roughly $16,760. Now, the country’s finance ministry has once again been pressured by European Union lawmakers to place more stringent limitations on individuals’ ability to purchase hard assets without documentation.
Through a bill that is scheduled to take effect on January 10, 2020, Germans will no longer be able to purchase gold in sums larger than €2,000 without first identifying themselves to the seller. The bill is part of wider legislation that ties into AMLD5, the Brussels parliament’s anti-money laundering directive.
With some two weeks left until the bill goes into effect, Germany’s residents are making the most of available time by stocking up on gold. Dan Popescu, a precious metals analyst and consultant, shared a Tweet on Wednesday showing a long line of people in front of a precious metals dealer store. Another Twitter user replied with his own picture illustrating consumer demand, adding that the store’s employees said that the latest gold rush is unlike anything they’ve seen before.
As per Bitcoin News, the pictures are hardly surprising and tie into general skepticism regarding the country’s fiscal policies. Besides added limits on gold purchases, Germans have also expressed their doubts surrounding the various strategies plotted forward by the European Central Bank, including negative yields on government bonds.
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Gold Is the Asset to Watch in 2020, Says Strategist
Gold Is the Asset to Watch in 2019, Says Strategist
Gold Is the Asset to Watch in 2018, Says Strategist
Gold Is the Asset to Watch in 2017, Says Strategist
Gold Is the Asset to Watch in 2016, Says Strategist
Gold Is the Asset to Watch in 2015, Says Strategist
Gold Is the Asset to Watch in 2014, Says Strategist
Gold Is the Asset to Watch in 2013, Says Strategist
Gold Is the Asset to Watch in 2012, Says Strategist
Gold Is the Asset to Watch in 2011, Says Strategist
Gold Is the Asset to Watch in 2010, Says Strategist
Just like the climate crisis cited in the previous article.
THE MACRO BIG PICTURE
GOLD PRICES – 100 YEAR HISTORICAL CHART
Interactive chart of historical data for real (inflation-adjusted) gold prices per ounce back to 1915. The series is deflated using the headline Consumer Price Index (CPI) with the most recent month as the base. The current month is updated on an hourly basis with today’s latest value. The current price of gold as of a few minutes ago is $1,518.30 per ounce.
https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart
SILVER PRICES – 100 YEAR HISTORICAL CHART
Interactive chart of historical data for real (inflation-adjusted) silver prices per ounce back to 1915. The series is deflated using the headline Consumer Price Index (CPI) with the most recent month as the base. The current month is updated on an hourly basis with today’s latest value. The current price of silver as of a few moments ago is $17.89 per ounce.
https://www.macrotrends.net/1470/historical-silver-prices-100-year-chart
GOLD TO SILVER RATIO – 100 Year Historical Chart
This interactive chart tracks the current and historical ratio of gold prices to silver prices. Historical data goes back to 1915.
https://www.macrotrends.net/1441/gold-to-silver-ratio
Central banks have been playing the game of vilifying gold for the common investor while at the same time buying it at depressed prices for years. They have gone long a long time ago. They are buying Gold at the greatest rates since WW2.
The fundamentals for the gold price to move much higher are incredibly strong, especially judging how stock prices soared over the past five years from so much direct central bank intervention.
The great bait and switch Bankster game is always a constant.
The article was written by a gold salesman.
A gold salesman got to me back in 2011.
Me too but gold IS the correct move right now regardless
I’ve been hearing ‘gold will astronomically take off in just a few weeks’ for many years. I’ve also heard many people lament the fact they bought some years back and nothing major has happened.
If you bought with the sole purpose of speculation then you truly do not understand what gold and silver are. If you bought because you recognized that all is not well in the world economically and expected things to completely fall apart after your big purchase perhaps like many you found your crystal ball does not work so well.
Has anything gotten better? If not then what would you rather hold: real money valued for centuries or IOU’s? Things will continue until they can’t. While I don’t expect a Venezuela type scenario I do believe at some point those who held their wealth in paper IOU’s(dollars, stocks, bonds,etc) will regret their choice. At least that’s what history has shown repeatedly. None of the proles are privy to when but with the US dollar as an unbacked fiat currency having lost somewhere around 97 to 98% of its purchasing power it does not seem like its to far off.
I bought in 2016 for 1275 so I’m up roughly 30 percent in 3 years Better than interest in the bank and safer so I’m very happy
I think I’ll go with silver.
This is from 2017, and worth the time.
THE TOP TEN REASONS TO OWN GOLD & SILVER
10. ALL FIAT CURRENCIES EVENTUALLY GO TO ZERO – AND ALL CURRENCIES TODAY ARE FIAT
Since the year 1500, a whopping 617 fiat currencies have become worthless. About a quarter of those was due to hyperinflation after citizen lost confidence in their currency. And this can still happen today, as was seen when Venezuela experienced massive hyperinflation.
The message from history is very clear: no fiat currency has lasted forever. Eventually, they all fail. And today they’re all made of paper, backed by nothing.
Mike owns physical gold and silver because they are money, and every fiat currency today is not.
9. THE CURRENT STATE OF THE GLOBAL ECONOMY
Debt, deficit spending, derivatives and trade imbalances are at levels unprecedented in all of history.
As bad as worldwide debt levels are, total derivatives exceed $1.2 quadrillion. This precarious bubble threatens to take down the world economy. This factor alone could wipe out your wealth overnight. Gold and silver, on the other hand, will soar in that scenario.
8. THE WORLDHAS FORMED A NEW MONETARY EVERY 30-40 YEARS – AND THE US IS OVERDUE
The average lifespan of all fiat currencies since 1500 is 40 years. The US dollar has been “fiat” since 1971 when Nixon ended gold convertibility and the Bretton Woods Agreement, cutting the last ties the U.S. had to the gold standard. This was nearly 50 years ago.
And since all currencies are fiat, the global financial system is more vulnerable than it has ever been. The global reset will affect the entire world — all 180 currencies in use today — because the US dollar represents over half of all currency in circulation. With this kind of dominance, faith in all fiat currencies could fail once the dollar falls. Owning gold and silver protects your wealth against this reset.
7. GOLD AND SILVER COME WITH A CENTERAL BANK GUARANTEE
In a desperate attempt to stem the crisis, government officials around the globe will flood the world with currency and push the purchasing power of gold and silver exponentially higher. Their efforts won’t work and — depending on how much they print — could easily tip us into hyperinflation.
Regardless of the culture or time period, currency dilution has repeatedly resulted in much higher gold and silver prices.
6. EVERTTHING ELSE IS A SCARY INVESTMENT
The broad stock market has more than tripled since its 2009 low. Government bonds have been in a bull market for 36 years and represent one of the biggest bubbles in history. And real estate values now exceed their 2006 peak, which was also one of its biggest bubbles in history.
Conversely, gold and silver prices are roughly one-third and two-thirds below their 2011 highs, respectively. They are the only truly undervalued asset class left today and will soar when other major investments crash.
5. MARKET PSYCHOLOGY
Greed can drive an investment to bubbly highs. But fear will drive the next bubble in gold because asset bubbles will pop with terrorizing speed and mercilessly wipe out most wealth. As a natural result, investors will seek refuge in precious metals. It’s this reason why precious metals have nearly always outperformed the stock market during the biggest crashes.
The base psychology of every investor — fear — will push gold and silver ownership into the next great bubble.
4. THIS TIME IT REALLY IS DIFFERENT
Gold’s biggest bull market in history (1970 to 1980) saw the price rise 2,328 percent, and silver 3,105 percent. But only two regions participated at that time (North America and Western Europe), meaning there were far fewer investors than today. In addition, there was much less currency chasing after gold and silver then.
Today, it’s just the opposite. Mike estimates there will be as much as 100,000 times more currency trying to crowd into the gold market (see how he gets to that figure in Reason #4 in the video).
3. GOLD AND SILVER SHOULD BUY A WHOLE LOT MORE
Gold and silver are tiny markets. On a per person basis, there is approximately $40,000 of liquid financial investments today, but just $200 of investment-grade gold.
If 10 percent of those assets were to buy gold, the price would rise 20-fold! It will take only a small amount of investment dollars rushing into the gold and silver markets to push their prices much higher.
2. IT’S ALL HAPPENING AT ONCE, AND THIS TIME ITS GOLBAL
It’s a sobering realization when you add up all the circumstances present today. Let’s recap:
• There is 200 times more wealth stored in other assets, and if only 10 percent of those dollars chase gold, its price
would rise 20-fold.
• Budget deficits, trade deficits and government debt have all ballooned to lethal levels.
• Stocks, bonds and real estate are all in bubbles.
• Credit, debt and derivatives are also in bubbles, and all bubbles eventually burst.
• The safety of most “trusted” investments will evaporate in the crises ahead, and the resulting fear will push
people into gold and silver.
• Today there are 10 times more people, each with 10 times more currency, and at least 10 times more people with
an “investor mindset” than in the prior gold and silver mania.
• For the first time in history, all the world’s currencies are fiat—and no fiat currency has lasted.
• Every 30-40 years, the world has a new monetary system. The last one was formed in 1971, so we’re overdue.
It’s not difficult to see that, in the scenarios Mike sees playing out, gold and silver will not just be one of the few assets left standing — their values will soar.
And the #1 reason Mike Maloney owns gold and silver…
1. HE SLEEPS BETTER!
If Mike is even half right about what’s ahead, the coming events will be, for many people, hard to handle emotionally. And that’s Mike’s #1 reason he owns gold and silver: they will protect his finances in a period of crashing markets, economies and currencies.
The crises ahead will be emotionally trying. Buying gold and silver now is one of the wisest financial moves you can make.
What does Mike buy? He’s currently buying more silver than gold since it is more undervalued.
https://goldsilver.com/blog/mike-maloney-the-top-10-reasons-i-own-gold-and-silver-new-video-series/