Goldman Sachs Says “Go for Gold!”; ING Says “Just Getting Started”
The Gold and Silver Bull Market is Just Warming Up!
There is no puzzle to the strength of the precious metals markets this year. It’s really very simple. And if you understand it, you will agree with the experts we cite herein that the bull market is just getting started.
In fact, their forecasts could be in the rear-view mirror in no time!
Gold is the preferred near-term long, and the favorite hedge against geopolitical and financial risks of Goldman Sachs, the influential investment banking giant. It expects gold to reach $2,700 next year.
Sachs says, “Go for gold!” It cites Fed policy, emerging market central bank buying, a tripling in central bank purchases since mid-2022, and expectations of continuing structural US sovereign debt issues for its gold target.
Nomi Prins, former Goldman Sachs managing director and author of the best-selling book, Collusion: How Central Bankers Rigged the World, shared the bullish Goldman Sachs outlook with her subscribers. Prins writes, “For gold, something new is emerging…. Unlike the last several years, Western capital from the U.S. to Europe has been shifting back into the gold market. If gold has experienced a notable rally without this shift, it’s reasonable to suggest that, driven by Fed rate cuts, this pattern could unlock even more momentum in a post-Fed-rate-cut world.”
ING Group, the Dutch multinational financial services firm, shares Goldman Sach’s outlook. It says the bull market is “just getting started.” Ewa Manthey, Commodities Strategist at ING, expects gold to average $2,580 in the fourth quarter.
The fourth quarter doesn’t start for weeks and as we write that price is just a whisker away!
“Gold’s upward momentum will continue next year with 2025 prices averaging $2,700,” said Manthey.
They may all need to update their forecasts soon!
We noted in a recent post that author Doug Casey says once gold gets going, $200 silver is easy to foresee.
It can all be explained easily. The most widely used currency here in the US and around the world is the US dollar.
But the management team responsible for the dollar actually quietly works for something other than the resilience of the dollar. The Federal Reserve was created by the money center banks to serve their interests. That is why no matter how inept and costly their policies are to you, the Fed races to their creators’ rescue at the expense of the American people. If the Fed needs to print trillions of dollars – creating sticker shock at the grocery stores for you and me – it will do so to bail out the banks and their plutocrats from their own practices. And we might note, so that those in the upper echelon of the crony banks get their bonuses, too. It’s been very, very good for the richest people in America as is evident from this chart comparing the net worth of the top one percent to GDP.
Along the way, the Fed has to serve the interests of the elected classes as well. It is always willing to print trillions for their vote-buying schemes and their elective wars, too.
To put it differently, when the dollar was reliable, that is to say when it was gold, there was no need for the Fed to pump and dump dollars into the economy, or to raise rates to fight the inflation that it caused in the first place. In the worlds of David Stockman, “The dollar was convertible into gold and that was all the anti-inflation machinery that was needed.”
So, a lot of digital ink gets spilled by market watchers – us included – to keep our followers abreast of what’s coming next, but much of it is unnecessary. If you watch the recklessness of Washington and the Fed, curators of the dollar, a long-term gold and silver bull market is pretty easy to foresee.