{"id":334536,"date":"2023-01-24T17:40:49","date_gmt":"2023-01-24T22:40:49","guid":{"rendered":"https:\/\/www.sgtreport.com\/?p=334536"},"modified":"2023-01-23T22:55:47","modified_gmt":"2023-01-24T03:55:47","slug":"were-just-one-step-away-from-5700-oz-gold","status":"publish","type":"post","link":"https:\/\/www.sgtreport.com\/2023\/01\/were-just-one-step-away-from-5700-oz-gold\/","title":{"rendered":"We\u2019re Just One Step Away from $5,700\/oz Gold"},"content":{"rendered":"

from Birch Gold Group<\/a>:<\/em><\/p>\n

\"\"<\/p>\n

From Peter Reagan at\u00a0<\/em>Birch Gold Group<\/em><\/a><\/p>\n

This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: Is $5,700 gold inevitable? Some mixed data from the world\u2019s top mints on gold and silver demand; and how the global de-dollarization movement insulates nations from sanctions.<\/p>\n

TRUTH LIVES on at\u00a0https:\/\/sgtreport.tv\/<\/a><\/p>\n

Compared to stocks, gold is 60% undervalued (for now)<\/h2>\n

MoneyWeek\u2019s Dominic Frisby is an analyst to watch. His precious metals analyses are full of insights, and his\u00a0latest observation on gold\u2019s price<\/a>\u00a0is fascinating. Frisby shows off his decades of experience by reminiscing about gold\u2019s price trajectory from the late 1990s to now.<\/p>\n

This isn\u2019t just a nostalgia piece, though. Frisby points out three important points in\u00a0gold\u2019s price<\/a>\u00a0history: $250\/oz in 1999, $1,910 in 2011 and $1,920 today.<\/p>\n

Why these?<\/p>\n

First:<\/p>\n

There was the low in 1999 at $250\/oz, marked for all eternity by Chancellor of the Exchequer, Gordon Brown, as he sold off two-thirds of British gold at the bottom of the market when there were no compelling reasons to do so.<\/p><\/blockquote>\n

Ouch. To give Gordon Brown the benefit of the doubt, surely he assumed gold was no longer a prudent investment. (But what did he replace it with? I\u2019ve no idea.) But remember, 1999 was near the\u00a0peak\u00a0<\/em>of the dot-com bubble.\u00a0Safe haven<\/a>\u00a0investments were out of fashion. Unprofitable, high-growth tech companies were all the rage \u2013 and\u00a0yes, that does sound familiar<\/em>.<\/p>\n

The dot-com bubble popped, markets tanked, and another bubble inflated in its wake \u2013 the one history remembers as the Great Financial Crisis. Gordon Brown probably felt severe heartburn the day gold reached its all-time high of $1,920 in 2011, a\u00a0668% increase\u00a0<\/strong>over the 1999 price.<\/p>\n

Frisby points out that the 2011 peak in gold\u2019s price was the culmination of several years of a\u00a0historic<\/em>\u00a0bull run. And, as we\u2019d expect after a long bull run, the retracement that followed was\u00a0considerable<\/em>. And quite possibly heartbreaking to some gold owners. (Consider, though, even gold\u2019s low points of 2013 and 2014 were\u00a0significantly\u00a0<\/em>above the Bank of England\u2019s selling price.)<\/p>\n

Fast forward to today \u2013 gold\u2019s price is $1,920 again. Does that mean we\u2019re at the peak of another bull market? Frisby thinks not.<\/p>\n

And here\u2019s the kicker. When we compare the S&P 500 index and gold\u2019s price ratio from 2011, and project forward to today?\u00a0Gold should be $5,700<\/strong>\/oz.<\/p>\n

Now, just to be clear, that\u00a0should be<\/em>\u00a0is arguable. Currently, the S&P 500 is\u00a0valued some 30% higher<\/a>\u00a0than back then. So it\u2019s more likely the case that\u00a0gold is considerably underpriced\u00a0<\/em>compared to stocks, even after their decline from \u201castronomically overvalued\u201d to \u201cmerely twice as expensive as the historic median.\u201d Frisby doesn\u2019t necessarily think gold will surge to $5,700\/oz \u2013 it\u00a0could<\/em>, but what\u2019s more likely in my mind is that stocks will continue their fall toward realistic prices.<\/p>\n

So, either gold rises to meet the S&P 500\u2019s price level, or the S&P 500 falls to reasonable prices. Either outcome, Frisby predicts, will leave gold owners in an enviable position.<\/p>\n

UK\u2019s Royal Mint posts record sales figures<\/h2>\n

UK\u2019s Royal Mint announced that its sales of\u00a0gold bullion increased by 25%<\/a>\u00a0year-over-year, and silver sales increasing 29% over the same period. Unsurprisingly, Royal Mint said that March had the highest volume of monthly sales as the Russian invasion of Ukraine spurred safe-haven demand and brought gold to a new all-time high. Interestingly, they saw a 5% increase in new buyers \u2013 so it wasn\u2019t just goldbugs and silver stackers driving demand, but\u00a0new investors\u00a0<\/em>interested in securing their savings, as well.<\/p>\n

Andrew Dickey, the Royal Mint\u2019s Director of Precious Metals Investment, is bullish on gold\u2019s prospects this year. He said that recessionary concerns, general uncertainty and crypto market turbulence should all contribute to heightened gold demand:<\/p>\n

Looking forward to 2023, many financial experts are expecting this momentum to continue, which will promote a level of confidence in investors of precious metals following IMF warnings of a recession. Evidence shows that previous recessions have had an impact on the gold price increasing, with the metal historically deemed a \u2018safe haven.\u2019<\/p><\/blockquote>\n

The\u00a0U.S. Mint\u2019s sales figures<\/a>\u00a0appear to be trailing those of Britain\u2019s Royal Mint. But is it really a lack of demand, or is something else playing a role? Out of the four precious metals\u2019 sales figures that the U.S. Mint revealed, we can\u2019t help but focus on those of silver. For example, 3,499,000\u00a01 oz American eagle silver coins<\/a>\u00a0were sold so far this month, compared to 5,001,000 coins sold last January.<\/p>\n

Are the silver American eagle sales figures going to catch up to those of last January? The better question is: if they don\u2019t, do we really believe it\u2019s due to a lack of demand? We\u2019ve\u00a0spoken about<\/a>\u00a0the\u00a0U.S. Mint<\/a>\u00a0having\u00a0difficulty sourcing silver<\/a>\u00a0for a\u00a0while now<\/a>. If the total sales figure for this month clocks in below last year\u2019s sales of silver American eagles\u00a0while other world mints are posting record numbers<\/em>, I believe it\u2019s safe to conclude that\u00a0demand<\/em><\/strong>\u00a0is not the issue.<\/p>\n

Rather, once again, that\u00a0U.S. Mint seems unable to keep up with demand<\/em>. Hopefully, we won\u2019t see a return to the sky-high premiums that shocked silver buyers during the worst of the pandemic panic. Hopefully.<\/p>\n

Even so, it\u2019s probably a good idea to\u00a0buy silver<\/a>\u00a0sooner rather than later \u2013 just in case\u2026<\/p>\n

Here\u2019s why countries are hoarding gold during a time of rising interest rates<\/h2>\n

It\u2019s not that often that the official sector steals the spotlight in the gold market, but we might be in such a time right now. And for good reason! Globally, central banks are buying gold faster than at any time in the last 50 years.<\/p>\n

\"Central<\/p>\n

Via\u00a0The Economist<\/em><\/a><\/p>\n<\/div>\n

 <\/p>\n

(Side note<\/strong>: Here\u2019s why\u00a0central bank gold reserves<\/a>\u00a0are important.)<\/p>\n

It\u2019s not exactly a concidence that the last time we\u2019ve seen this much gold bought by central banks, the year was 1967 and gold was still the global reserve currency. And neither is this point something we can overlook. In 1967, a central bank buying gold might have only meant buying the world\u2019s tether. Now, it represents something different.<\/p>\n

Kitco\u2019s in-depth\u00a0analysis<\/a>\u00a0delves into why countries are buying up gold during a time of rising interest rates and surging inflation. It\u2019s a long-winded story that can just as easily be explained with a single sentence. Or, for that matter, a single word:\u00a0independence<\/strong>.<\/p>\n

Why? This is all in light of the most recent episode of weaponizing the U.S. dollar. There is no question that Russia overreached with its invasion of Ukraine. But by\u00a0financial intervention<\/a>\u00a0via freezing assets and imposing sanctions (rather than a military intervention), did the U.S. make an overreach of its own? I\u2019m afraid the answer is\u00a0yes<\/em>.<\/p>\n

Sukhi Jutla, Sukhi Jutla, co-founder & COO of MarketOrder, put it this way:<\/p>\n

Recent months have seen many central banks stockpiling gold \u2013 perhaps because of rising inflation, but it could also be part of a wider strategy to help them become sanction-proof.<\/p><\/blockquote>\n

BRICS is obviously representing a kind of trade competitor, among many other things, to Western nation groups. It includes countries that have felt the sting of being cut off from the Western financial system, a sensation they aren\u2019t keen to continue experiencing. And wherever they go with their planned development of a new alliance, gold will follow.<\/p>\n

Read More @ BirchGold.com<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

from Birch Gold Group: From Peter Reagan at\u00a0Birch Gold Group This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: Is $5,700 gold inevitable? Some mixed data from the world\u2019s top mints on gold and silver demand; and how the global de-dollarization movement insulates nations […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[147038,147037],"_links":{"self":[{"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/posts\/334536"}],"collection":[{"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/comments?post=334536"}],"version-history":[{"count":0,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/posts\/334536\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/media?parent=334536"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/categories?post=334536"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/tags?post=334536"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}