In about eight days the US gold standard was crushed by the Federal Reserve System’s $35 an ounce gold fix.
In the past thirteen months, the price of gold has risen from $225.42 in January to $390.34 as of April 20th. The FED’s $35 gold fix is surely creating a demand for gold in the US economy.
Gerald Celente, the publisher of the Trends Journal has written an article stating that a gold rate of $2,000 per ounce is not far off.
Celente bases his claim on several economic and political factors. He warns that a gold price of $2,000 per ounce will not be found just at the end of the gold market cycle.
The biggest producer of gold, Australia, has forecast the price of the yellow metal will be $1,600 per ounce (160 grams) in 2020, representing a rise of 12 percent from current prices.
In its latest quarterly report, the American government-owned and majority-owned Reserve Bank of America said the current 14 Carat gold price was $34.484 USD per ounce.
Gold has a long history of fluctuating in value, and it is worth noting that the price is measured in weight, not in terms of units.
Let’s take a look at some of the factors that could impact the gold price next year.
The silver price is expected to increase sharply in 2021, according to an IEA report. The IEA expects silver prices to drop below $10/oz by 2023 and to reach $7/oz by 2026.
“Amongst other drivers, the silver price in 2021 will be influenced by: demand from electrification,” the report states.
“The overall need for more batteries will result in more use of silver. Also, the forecast of higher silver demand by renewable energy applications which are often in the form of rechargeable batteries has a material impact on the silver price.”
Another major factor will be the industry’s success in attracting environmentally-conscious institutional investors to silver.
Silver price forecasts for the first two years, including the average for 2021, are:
The average price of silver in 2021 will be $20.6 per ounce, an increase of 40 percent. This is based on all the forecasts available to BCG, which is the most complete historical data available.”
The forecast for the silver price is in line with what many silver experts have predicted. “Another silver increases this year, especially with the gold slump, will be good news for gold bugs, as silver price will rise more than gold and actually beat gold as well,” comments the London Bullion Market Association.
Silver price: A dealer research report
“The silver price was one of the casualties during the Gold panic of 1866. It was then, like now, a precious metal with unique industrial uses,” the report explains.Today silver is still an industrial material for manufacturing. A recent BCG study reveals that today a third of the world’s silver-based batteries are in the electric vehicle sector.