Sprott Money Contact Form
 

Thank you for contacting Sprott Money.  We will respond to you within 1 business day.

 

Sincerely,


The Sprott Money Team


Sprott Money Ltd.
111 Queen St. East
Suite 501
Toronto, Ontario M5C 1S2
Canada

[t] 1.888.861.0775
[f] 416.861.9855
sales@sprottmoney.com
www.sprottmoney.com

Administrative office only - no walk-in sales.

 

Please Try Again After Some Time...
Please enter valid captcha
Name*
Email*
Comments*
Loading Image
Swipe to the left

Gold Bullion Heads Toward All Time Highs, Shatters $1,900 Ceiling - Nathan McDonald (July 24, 2020)

Gold Bullion Heads Toward All Time Highs, Shatters $1,900 Ceiling - Nathan McDonald (July 24, 2020)
By Nathan McDonald 20 days ago 6531 Views No comments

July 24, 2020

The record high for gold bullion stands at $1,920.70 USD, reached approximately nine years ago in 2011. The price stunned traders and investors in the precious metals markets at the time, after it peaked and ended there following a spectacular bull run.

Now we are closing in on that price again, and the precious metals bull market of 2020 has only just begun in earnest.

Strap yourselves in and get ready for some phenomenal gains.

(Chart source, goldprice.org)

As it stands at the time of writing, gold bullion has shattered through the $1900 ceiling in rapid succession. This comes after only recently breaking through the $1800 mark—a level that was previously acting as resistance— and as predicted, once this level was solidly broken through, rapidly increasing gains resulted.

Silver bullion has followed in gold’s footsteps, also experiencing an impressive and rapid acceleration higher in prices, resting at $22.85 per ounce at the time of writing, with a strong potential of breaking above $23.00 per ounce.

These strong moves higher in both gold and silver bullion come as investors begin to realize just how precarious a situation the world now finds itself in. A prolonged coronavirus pandemic seems more and more likely, with health officials saying that not only is a vaccine NOT in the foreseeable future, it’s also not even a likely "fix-all" solution, given the nature of the virus.

This comes as the United States officially surpasses 4 million confirmed COVID-19 cases, with Florida being one of the most heavily hit states in recent days and experiencing a record number of deaths.

This means further strains on our already crippled economy, more money printing and bailouts, and more stress and uncertainty as we head into the future.

In addition, interest rates around the world have plummeted, as Central Banksters ratchet rates to all-time lows, some even dipping into negative interest rate territory, doing everything they can to help artificially prop up this flailing economy.

Russia’s central bank was the most recent one to take action, lowering its main interest rate by 0.25%, to 4.25%. Which may seem high when compared to some Western nations, but is in fact a record post-Soviet low for the country.

Mark Mobius, co-founder of Mobius Capital Partners, had the following to say in a recent Bloomberg interview about investing in gold at this time:

“When interest rates are zero or near zero, then gold is an attractive medium to have because you don’t have to worry about not getting interest on your gold and you see the gold price will rise as uncertainty in the markets are rising.”

Wall Street is finally taking the blinders off, which is why we have seen the recent pull back in stock prices coinciding with this sharp increase in safe haven assets such as precious metals.

(Chart source, google charts)

Throwing gasoline on an already blazing fire, China and the United States have once again renewed their spat, going tit for tat in their most recent hostile exchange.

This renewal in tensions comes after the United States government decided to close a Chinese consulate in Houston Texas, citing "spying" concerns.

This of course infuriated the Chinese government, which has denied the accusation and shut down a U.S. consulate in kind, the Guardian reports:

"Beijing has ordered the closure of a US consulate in south-western China, in a move that escalates tensions between the two countries to a new level.

On Friday, China’s ministry of foreign affairs said it had ordered the US consulate in Chengdu, in Sichuan province, to cease all operations. Authorities notified the US of China’s decision to revoke its consent for the consulate to operate, according to a notice on the ministry’s website."

The question now remains: how much further are these two countries willing to take this spat? Will it spill over and escalate even further than it already has, ending the hard strides that both parties have made toward improving trade relations? We shall just have to wait and see.

Regardless, the prospects for both gold and silver bullion have never looked better, with the world facing crisis after crisis on a seemingly daily basis.

In such a climate, precious metals should continue to increase in demand for the foreseeable future and thus will offer some of the only true financial protection you will find moving forward throughout the remainder of 2020 and well into 2021.

As always, stay safe and keep stacking.

About Sprott Money

Specializing in the sale of bullion, bullion storage and precious metals registered investments, there’s a reason Sprott Money is called “The Most Trusted Name in Precious Metals”.

Since 2008, our customers have trusted us to provide guidance, education, and superior customer service as we help build their holdings in precious metals—no matter the size of the portfolio. Chairman, Eric Sprott, and President, Larisa Sprott, are proud to head up one of the most well-known and reputable precious metal firms in North America. Learn more about Sprott Money.



Nathan McDonald is a libertarian, entrepreneur and precious metals enthusiast. He has always taken a keen interest in free markets and economics since an early age, which naturally led him to become a true believer in precious metals and all that they stand for.

Nathan served eight years in the Royal Canadian Navy as an electronics technician, seeing the true state of the world, before starting his first successful business. He has since gone on to create a number of businesses, all of which are still in operation and growing.

In addition to this, Nathan runs a network of successful precious metals blogs, and a growing newsletter that has attracted readers from all around the world. He is a regular and highlighted writer for the highly respected Sprott Money Blog, which covers world events, geopolitics and of course precious metals.



The views and opinions expressed in this material are those of the author as of the publication date, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.You may copy, link to or quote from the above for your use only, provided that proper attribution to the source and author is given and you do not modify the content. Click Here to read our Article Syndication Policy.

Back to top