Gold price and silver price ‘eclipse’ 6-month records, this is the trigger
(Kitco News) It’s “a crazy world” with stocks, real estate and more. But the long-awaited surge in gold and silver is coming in the next six months, said Mike Larson, senior analyst at Weiss Ratings.
“If you’re in a world where a lot of assets are overvalued, where real estate is extremely valued, stocks are extremely valued, and so on. What hasn’t increased and is still relatively cheap? for me it is precious metals. And of course the stocks of the companies that operate them, ”Larson told Michelle Makori, editor-in-chief of Kitco News, on the sidelines of the New Orleans Investment Conference.
What has held back gold and silver this year is fears that the Federal Reserve will have to act aggressively and raise interest rates quickly in order to fight inflation.
But that won’t happen, according to Larson. “We will realize at the beginning of 2022 that the Fed will not be able to be aggressive. People must realize that this Fed is very timid. It is a Fed that has a lot of political pressure to favor the employment side of its inflation mandate.
This tightening cycle will be very different from previous ones, and gold and silver are in the best position to benefit from it, Larson noted. “As we head into next year and get to the midpoint, we’re going to see this next rise in gold and silver because people won’t have to fear the Fed so much anymore. if the GDP tends a little lower, what motivation do they have to increase the rates in an aggressive way? “
Larson’s price outlook is rather bullish, predicting gold and silver to hit new highs over the next six months.
“The highs we saw 14 months ago for gold and silver will likely be eclipsed next year. It won’t be $ 4000 gold, but $ 2200, $ 2300, 2400 $. And a corresponding movement of the money is probably on the table, “he said. . “It’s going to come from this release of this fear of the Fed that keeps people from getting involved.”
Watch the video above to hear Larson’s thoughts on the Fed’s loss of credibility as well as his reasoning behind why it’s now a “mad world.” Follow Michelle Makori on Twitter: @MichelleMakori.
Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to trade in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.