So what investments worked during that decade? Scorching inflation this year recalled similarly high consumer prices in the 1970s. In the third quarter, official net gold purchases were approximately 400 tonnes, around $20 billion, the most in over a half-century. Most importantly, central banks can't get enough of the metal. A recession looks all but guaranteed with the yield curve at its most inverted in over 40 years. Inflation remains stubbornly high, and the US Dollar is on the decline. Its 50-day moving average has crossed above the 100-day, while gold itself is trading above its 200-day average. Technically, gold is setting up for a monster rally. I believe it's entirely possible that the metal could hit $4,000, a price I've been forecasting since 2020. In his outlook for 2023, respected commodities strategist Ole Hansen said he believes gold could hit $3,000 an ounce once the market realizes that inflation will remain high despite historically aggressive monetary tightening. In October, the Biden Administration announced it would be awarding nearly $3 billion in grants to some 20 US companies to "expand domestic manufacturing of batteries for electric vehicles and the electrical grid." The lion's share of the investment went to three companies – Talon Metals, Piedmont Lithium and Albemarle – all of which are in the process of building new lithium projects here in the US Asia, and specifically China, has long had an advantage over the rest of the world in producing "white gold" products, but that may be set to change. Lithium stocks continue to look interesting as demand for energy storage technology increases. $2.8 Billion Lithium Investment to Jumpstart 'White Gold' Rush (Oct 2022) Meanwhile, gold miners, as measured by the NYSE Arca Gold Miners Index, have jumped more than 32% since the late-September bottom. Since then, gold has climbed around 10%, making it one of the most resilient assets of the year. The yellow metal declined more than 20% from its 2022 peak in March to the trough in late September, when the exchange rate also found a bottom. That's when the Euro/Dollar exchange rate hit its most favorable level in 20 years, fueled by the Federal Reserve's aggressive tightening cycle.īut a strong Dollar, as you know, can also be kryptonite to gold. What This Means For Gold (July 2022)įor frugal travelers, there was no better time to visit Europe than in September of this year. Below are recaps of the five most popular stories in descending order by pageviews. Not uncoincidentally, the most popular stories of 2022 that were published on all had to do in some way with gold, gold mining stocks or other hard assets. The yellow metal was one of the very best assets of 2022, down just 1.5%, compared to a loss of more than 19% for the S&P 500 and around a 10% loss for US government bonds. Through it all, gold managed to help investors limit their losses. These have had wide-ranging implications for the world of finance that are sure to carry over into 2023. ANY WAY you slice it, 2022 was a turbulent year, from Russia's invasion of Ukraine to historic inflation and jumbo rate hikes to multiple failures in the digital asset space, writes Frank Holmes at US Global Investors.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |