The fundamentals for silver and gold are very strong, and with all the massive bailouts and stimulus, which have increased debt levels, they are just getting stronger.
Until a significant portion of these debts is repaid or defaulted on, it would be foolish to talk about a top in precious metals.
The repayment of debt (or default on debt – which is more likely) will result in significantly reduced economic activity. Significantly reduced economic activity will have a negative effect on the stock market, which in this case, will likely result in a huge crash.
For now, the stock market is defying the reality of the bleak economic outlook, but not for long.
It is these conditions (a deflating debt bubble) that will drive gold and silver prices significantly higher.
Why? Because this will not just be a normal type of reduced economic activity (recession), but one in which the monetary system as a whole is questioned and collapses (due to the excessive debt levels).
In a crisis like this, it will be all about preserving value, which will make gold and silver the most wanted goods. The excessive debt levels we have currently, mostly is represented by artificial value or promised value (in bond, stocks etc.); value that will never be realized. We now have a great opportunity to convert that soon to be destroyed value into real value, by buying gold and silver.
Silver will be the biggest winner no matter how you look at it. Just remember, silver is still trading at 36% of its 1980 high, whereas gold is more than double the 1980 peak.
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NEWS and COMMENTARY
Gold holds firm above $1,800/oz on virus fears, weaker dollar
Gold at $2,000 Is Now Even More Likely, Goldman Says.
Dollar decline resumes as investors look to economic data, earnings
German economy has passed low point – ministry
Coronavirus bringing record $1 trillion of new global corporate debt in 2020: report
GOLD PRICES (USD, GBP & EUR – AM/ PM LBMA Fix)
10-Jul-20 1805.75 1803.10, 1433.40 1427.33 & 1599.35 1594.84
09-Jul-20 1812.45 1812.10, 1434.01 1431.74 & 1600.57 1600.08
08-Jul-20 1799.35 1811.10, 1438.40 1438.74 & 1596.38 1598.48
07-Jul-20 1775.50 1789.55, 1423.77 1424.84 & 1576.11 1585.00
06-Jul-20 1774.40 1787.90, 1420.76 1429.43 & 1572.12 1578.36
03-Jul-20 1774.65 1772.90, 1426.29 1422.40 & 1580.33 1577.70
02-Jul-20 1771.85 1777.45, 1415.00 1421.60 & 1568.97 1577.13
01-Jul-20 1787.40 1771.15, 1444.90 1424.63 & 1592.93 1574.82
30-Jun-20 1770.70 1768.10, 1444.18 1436.58 & 1580.35 1577.32
29-Jun-20 1768.80 1771.60, 1434.67 1440.31 & 1571.23 1573.54