TGIF

As we head into the weekend, there are still some analysts who see big things still ahead for gold—one analyst thinks the yellow metal could reach $4,000 per ounce! (That article is below.) And if you are feeling like maybe you have already missed out on the gold and silver rush—we have a commentary by a highly decorated analyst who makes his case—you’ll have to check it out to find out the answer… That and much more in today’s news items.

Let’s dig in…

Price
Gold Rising to $4,000 an Ounce ‘Would Not Be Unreasonable’

Michael Cuggino is a fund manager at the Permanent Portfolio. On the MarketWatch website, he makes the case that gold is still relatively cheap, even after rising 35% this year. Cuggino thinks says gold can move a lot higher. It would “not be an unreasonable move” for gold to breach $4,000, he said in an interview.

HERE IS HIS CASE WHY GOLD COULD HIT $4k

Economy
Investment Demand Lifts Gold Prices Even with Slower Jewelry Purchases

Chris Mellor, Head of EMEA ETF Equity & Commodity Product Management, Invesco, commented: “Investors have looked to gold for two main reasons. First as a safe haven during the COVID 19 crisis, helping to protect portfolios against the potential impact of the recession on corporate earnings and therefore risk assets such as equities or corporate bonds. Second, it is seen as a hedge against inflation: if the economic impact of the crisis proves short-lived, with the degree of stimulus and the size of government debts then there is a risk that inflation could return and a real asset such as gold is therefore appealing.”

Commentary
Did you miss the gold and silver train?

Patrick A. Heller was honored as a 2019 FUN Numismatic Ambassador, along with a long list of honors listed in his author bio below his intriguing article called “Is it ‘Too Late’ to Buy Gold, Silver?” He writes, “The question we are starting to hear is if it is “too late” to get in on the current boom in gold and silver prices. Part of the difficulty of answering such questions with certainty is that we will not know where the market will peak until after the fact. However, past market boom cycles (which don’t guarantee future results) indicate the answer to such questions is no. Let’s review what happened with gold and silver prices during The Great Recession of 2007-2009 and the aftermath. Let’s look at gold first. FIND OUT IF YOU HAVE MISSED THE GOLD AND SILVER BOOM OR NOT

Price
Silver: The Comeback Kid

When the global selloff hit in March, silver was not exempt from the action. Since then, the grey metal has bounced back in a big way. Fiscal and monetary responses to COVID-19, along with a potential green revolution, have spurred silver prices since the coronavirus began disrupting the American economy. We can look at silver trading year to date in two very distinct periods. The first one, from January to late March, captures…

Commentary
Billionaire Has Dollar Fears and Worries About the ‘Soundness of Our Money’

His name is Ray Dalio, a famous investor who has achieved the billionaire club. The dollar is slumping, and Dalio fears there is more to come: the conflict between the U.S. and China could develop into a ‘capital war’ which would hit the dollar much harder—which is already at its lowest point in two years. Dalio lists a number of factors that are causing him to worry about the soundness of American currency. “There’s a trade war, there’s a technology war, there’s a geopolitical war and there could be a capital war — that’s the reality,” Dalio said on Fox’s “Sunday Morning Futures.” “If you say by law, don’t invest in China or even possibly withholding the payment of bonds that the United States owes payment on in China, these things are possibilities and they have big implications, such as for the value of the dollar because premarket investors are not used to having those things dictated by the government,” he said. Dalio founded the Bridgewater Associates hedge fund, and the firm recently had to lay off several dozen employees. When asked whether he was worried about the dollar, Dalio warned… READ MORE

Stock Market
Here’s Why Gold Will Beat U.S. Stocks in the Turbulent Market

On the Bloomberg Business News Network blog, two strategists weigh in on why they think gold is the better bet verses the stock market. There has been a three-month period where the returns of gold and the stock market were practically tied at the hip—but these two analysts think the pair could be parting ways soon. “While the correlation between gold and equities has turned unambiguously positive since the March lows in risk assets, another serious bout of risk aversion could cause the performances of equities and gold to diverge,” SocGen strategists including Jitesh Kumar wrote in a note dated Aug. 4, echoing comments from other strategists. READ MORE

Thanks,
Gold Silver Central