Gold seems to have now found a new floor within this month - this time it is $3,000 an Oz.
We have been following Gold, since it was $2,100 an Oz two years ago and we can see that the psycological level of $3,000 has been breached successfully.
Nevertheless, Gold is still cheap currently, when compared historically as Gold prices were much higher in 1970s and even in 2000s when Dollars and other fiat currencies had more value.
Gold is becoming a killer asset.
I've never made such a bullish statement on Gold in atleast the last 10 years, until today, and have always been cautious in last 10 years as Gold went through some real challenging phase after 2013 upto 2019 and then again from mid-2021 to late-2022.
However now I can say, we are at the cusp of a Precious Metals Super Bull Cycle.
I've always been a big supporter and fan of Donald Trump, since 2016 when he was still in primaries for his 1st term election.
In the interim years 2020-2024 when Donald Trump was not the US President, permanent damage has been done to US and global economy in terms of creating high inflation, huge indebtedness and stock market bubbles globally (except China, which on other hand is having a massive real estate crash, which is destroying China's consumer spending as Chinese people see their biggest wealth investment - their properties lose value)
Gold has now gone past $2,700 per Oz for Dec 2024 futures, and all this is happening after interest rates have started falling globally.
Globally among the developed countries - their governments, most of their corporations and citizens have accumulated huge unsustainable debt, and hence central banks can't keep interest rates higher for longer. Already, central banks like the US Federal Reserve have done a lot of damage to its citizens, corporations and government by keeping interest rates unsustainably higher for longer, and now are forced to rapidly cut interest rates to reduce further damage. The effects of the damage itself which is already done, will only be visible in coming months.
Hence we can expect further jumbo interest rate cuts in coming months, across the developed world which would put upward pressure on gold prices to raise higher.
The fact that just the first interest rate cut in the US, has pushed the gold prices to $2,700 per Oz, and further maniac interest rate cuts which are nevertheless coming, given huge debt levels - gold prices would only be under pressure to go higher above $3,000 per Oz pretty soon.
Now that Gold has broken above $2,300 an Oz in April 2024, and remained steady at these levels. $2,300 an Oz, is the new base price for Gold.
Silver also has broken above $30.0 an Oz in May 2024, silver has broken above this price first time after 2012-13, after more than 10 years. Now $30.0 an Oz, has become the new base price for Silver.
As a gold and silver metal investor, happy to see these breakout levels for both these precious metals, both of which are in the beginning of a major bull market, which will go into mid 2030s, considering the magnitude of inflation, particularly hyper-inflation which has been created globally. The inflation story is not ending, and inflation will only get bigger as creating inflation is the only solution governments have globally to solve problems.
While gold and silver metal can be bought even now, as they are going even higher for rest of this decade, and into mid 2030s, one sector where price is still cheap in gold and silver mining stocks. Gold and silver mining companies stocks have never been this cheap, and last time more than 10 years ago during 2011-2013 these mining stocks had peaked and since then had fallen.
Now with record inflation globally since 2020 Covid pandemic, and prices of everything from cars to food to hair cut increasing in double digits globally, in a high inflationary cycle since 2020-2021 - precious metals which protect purchasing power are the ultimate inflation protection assets.
Therefore its high time to buy these gold and silver mining company stocks, which will only go up as more new gold and silver need to be digged from earth, and current levels of above ground gold and silver metals are decreasing given very high demand from top buyers of Gold and Silver globally - China, India, Singapore, Turkey etc. Even in western markets, demand for gold and silver bars from retail investors has gone up recently in 2024. Costco was able to sell $800 million in Gold bars in 2 months over retail counter, after they introduced 1 Oz gold bar as a product over retail counter at their Costco wholesale stores. Once Hedge funds and other large institutional investors in western countries who have noticed this surge in interest in gold and silver get in, that's when even gold and silver mining company stocks will take off, along with the actual metals.
