Gold & Silver Getting Ready For A Great 2024
| Stuppler & Company is proud to provide our clients this Weekly Market Report (WMR). The report gives you my overview of the prior week’s precious metal and rare coin market activity and news. In each WMR, I share the current status of Gold and Silver along with their support and resistance levels. |
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This Week's Headlines: |
We can look back on 2023 now. It was a good year for Gold with an increase of $239.50 per ounce (13.14%), closing the year at $2,062 per ounce. However, other precious metals such as Silver, Platinum, and Palladium didn’t do well. All three other metals were lower in 2023.
Based upon all the factors, which includes both geopolitical and economic issues that I mentioned in earlier Weekly Market Reports (WMR), I believe 2024 will be a breakout year for Gold. My prediction for 2024 is that Gold will trade between $2,000 and $2,400 per ounce. With two wars, changing Federal Reserve policies, and an election coming in 2024, Gold should see a lot of price volatility. I expect to see the demand for physical Gold investment coins pick up, and premiums should increase.
I recommend reading the above article showing various state legislators trying to reclassify Gold and Silver as money. With Basel 3+ coming (causing banks to upgrade the value of their Gold holdings) and the possibility of currencies becoming digital with Gold backing, the definition of precious metals is changing in a positive way for investors.
Today: We start 2024 with Gold rallying in Asia and Europe, reaching a high of $2,077 before rolling into the U.S. As we moved into the U.S. commodity markets, the U.S. Dollar rallied (moving over 102), and Gold quickly sold off. Gold reached a low of $2,057 before finding bargain buying.
Silver ended 2023 at $23.85 per ounce down $0.10 for the year, a very disappointing result with Gold over $2,000 per ounce. With the Silver-to-Gold ratio at 86-to-1, Silver is at an extraordinary value plus a bargain with the current price and low premiums.
What happened to Silver in 2023?
I believe the key factor to Silver’s disappointing price performance in 2023 was the Federal Reserve's policy of increasing interest rates to fight against increasing inflation. Silver is well-known as a outstanding inflation hedge, and with inflation dropping the last three months of 2023, it caused a lack of buyers, thus lowering premiums. Although the Silver price was only down $0.10 per ounce, premiums on many of the popular Silver investment coins were down 15% to 20%.
I expect to see an increase in the price of Silver start slowly in 2024, trading under $25 per ounce. As Gold continues to set one record high after another, and we see interest rates dropping and consumer inflation picking up, Silver will rally. I still continue to believe Silver at the current price is an excellent long-term value, but Gold is in the spotlight now.
Today: Silver followed Gold, reaching $24.11 in Asian trading and selling off in the U.S. Market, reaching a low of $23.70 per ounce. Buyers got aggressive at today’s low, taking the market up $0.15.
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