Gold Has a Long Way to Go!

Why is gold setting new records?  

It’s a gold and silver bull market for all the reasons we’ve been saying.  As we write this, spot gold is about $2,400, while Spot silver is closing in on $29.00 per ounce. 

Why are precious metals so strong, especially in a rising interest rate environment?

Because other countries are fed up with dollar inflation. US debt has gone stratospheric, and the swamp creatures don’t care. Their cronies are stealing everything, and Washington wars are making us poorer.

Just a decade ago foreign investors and foreign central banks owned about 43 percent of all outstanding US government debt.  That has now fallen to about 30 percent.  

Washington has given no sign that it is going to do anything about soaring US debt.  On the contrary, its spending continues to grow ever more reckless. Some of that spending is driven by forces out of the hands of Capitol Hill.  Rising interest rates are hitting hard.  The average interest on US government debt is now 3.2 percent.  That may seem low, but it is the highest it has been since 2010 and as old debt at low rates matures, it has to be refinanced at prevailing rates that are much higher.     

It was in 2020 that gold first traded above $2,000 an ounce.  

As you can see, gold topped at just below $2,100 three times, in in August ’20, March ’22, and May ’23.  Now after four years of range-bound trading, gold has run through all the overhead resistance like a hot knife through butter.  

Spot silver has peaked at about $50 an ounce three times, first back in 1980, and more recently in 2011 and again in 2012.  

Don’t miss this bull market.  The US dollar is losing its global reserve might, while silver is still way below its all-time highs.  And gold has a long way to go!