Nugget News January 2025
30 Day Market Moves
Silver $42.75 (- 2.67%)
Gold $3817.22 (+ 3.76%)
Gold Outlook...Gold had a tremendous 2024, setting multiple records and closing the year with a 40.5 percent gain. It was one of the best-performing assets last year. Analysts at major banks generally expect the gold bull rally to continue into 2025. Any kind of economic upheaval would drastically change the calculus of gold. If the economy breaks under the pressure of higher interest rates, and if the Fed speeds up the pace of rate cuts, gold would get an even bigger boost. Mainstream analysts tend to think the year will remain free from any kind of significant economic chaos or crisis.
-This debt riddled bubble economy is addicted to easy money and can't function in a higher interest rate environment.
Silver Outlook...Ending the year with a 38% gain is what silver holders have been calling for awhile. There are also indicators that the price of silver has been suppressed, given the high amount of financial leverage used in the silver market compared to the physical ounces available. Silver also tends to rise much further and faster than gold during the latter part of a gold bull market. Some analysts believe the price of silver may surpass $100 within the next few years. But silver tends to be way more volatile than gold – both to the upside and to the downside.
- We believe silver is likely to rise more than gold in the coming years, even as it will almost certainly be a bumpier ride.
Dollar Weaponization?...Russia’s use of gold during its war with Ukraine reveals one of the reasons why so many countries are stockpiling the yellow metal. Central banks around the world have bought thousands of tons of gold over the last several years. The pace of buying picked up after the U.S. and its allies froze Russian dollar assets and locked the country out of the SWIFT payment system. Worried that the United States and its allies could use the dollar against them, many countries have attempted to diversify their reserves to minimize that possibility.
- Gold provides the perfect alternative. It is recognized as money around the world, is accepted virtually everywhere, and comes with no counterparty risk.
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