A falling dollar could lead to a boom in gold and silver investments
According to Jonathan Rose, CEO of Genesis Gold Group, the devaluation of the dollar, inflation and U.S. monetary policy are the main drivers of growth in the precious metals market.
A Kitco News survey shows a jump in silver by more than 50% to $38 per ounce and a rise in gold to $2,100 per ounce in 2023.
Morgan Stanley suggests that silver prices could be 2 to 3 times more volatile than gold prices.
The main reason for that, according to Rose, are the sizes of the markets. The silver market is much smaller than the gold market, consequently, it has less liquidity.
Nevertheless, the gap may be narrowed as the use of silver in industry grows. More and more solar panels are being used in power generation, and the automobile sector is shifting to electricity.
According to Rose, silver has an industrial potential, which gives a much higher price cap, so professionals are positive about it.
He added that demand for silver is at record levels and its attractiveness as a safe-haven asset is a significant reason to invest in this metal.
At the present time, the cost of gold is firmly entrenched at $1,900 dollars per ounce. That mark is already very close to a possible maximum predicted by analysts. That kind of dynamics is driven by noticeable dollar weakening and decrease in the yields of the U.S. government bonds.
27 JanuaryAccording to expectations of strategists of the Internationale Nederlanden Groep, gold will grow in 2023.
27 JanuaryThe U.S. economy unfolded more actively in the fourth quarter than analysts might have expected. However, domestic demand grew at the slowest pace in 2.5 years, reflecting the impact of higher credit costs.
27 JanuaryThe U.S. strategic petroleum reserve (SPR) decreased by more than 40% in two years. The reserves were 371.57 million barrels on January 20, compared to 638.08 million barrels a year ago.
27 JanuaryThe European Union plans to implement a $100-per-barrel limit on Russian diesel fuel.
27 January