Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Friday Stock Market CRASH Following Israel Attack on Iranian Nuclear Facilities - 19th Apr 24
All Measures to Combat Global Warming Are Smoke and Mirrors! - 18th Apr 24
Cisco Then vs. Nvidia Now - 18th Apr 24
Is the Biden Administration Trying To Destroy the Dollar? - 18th Apr 24
S&P Stock Market Trend Forecast to Dec 2024 - 16th Apr 24
No Deposit Bonuses: Boost Your Finances - 16th Apr 24
Global Warming ClImate Change Mega Death Trend - 8th Apr 24
Gold Is Rallying Again, But Silver Could Get REALLY Interesting - 8th Apr 24
Media Elite Belittle Inflation Struggles of Ordinary Americans - 8th Apr 24
Profit from the Roaring AI 2020's Tech Stocks Economic Boom - 8th Apr 24
Stock Market Election Year Five Nights at Freddy's - 7th Apr 24
It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- 7th Apr 24
AI Revolution and NVDA: Why Tough Going May Be Ahead - 7th Apr 24
Hidden cost of US homeownership just saw its biggest spike in 5 years - 7th Apr 24
What Happens To Gold Price If The Fed Doesn’t Cut Rates? - 7th Apr 24
The Fed is becoming increasingly divided on interest rates - 7th Apr 24
The Evils of Paper Money Have no End - 7th Apr 24
Stock Market Presidential Election Cycle Seasonal Trend Analysis - 3rd Apr 24
Stock Market Presidential Election Cycle Seasonal Trend - 2nd Apr 24
Dow Stock Market Annual Percent Change Analysis 2024 - 2nd Apr 24
Bitcoin S&P Pattern - 31st Mar 24
S&P Stock Market Correlating Seasonal Swings - 31st Mar 24
Here's a Dirty Little Secret: Federal Reserve Monetary Policy Is Still Loose - 31st Mar 24
Tandem Chairman Paul Pester on Fintech, AI, and the Future of Banking in the UK - 31st Mar 24
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Investors Don’t Believe the Gold Rally, Still Prefer General Stocks

Commodities / Gold & Silver 2024 Mar 09, 2024 - 10:34 PM GMT

By: MoneyMetals


This week investors are witnessing a historic move in gold prices. The precious metal finally broke above a longstanding overhead resistance level to reach new all-time highs.

On Thursday, gold closed at $2,170 per ounce – its highest level since…well, since records have been kept.

As of this Friday recording, gold checks in at $2,203 an ounce on the heels of a 5.2% advance on the week – its best week in nearly six months. Silver shows a weekly gain of 5.9% to bring spot prices to $24.70 an ounce. Platinum is up 3.0% to trade at $926. And finally, palladium is putting in a 6.7% gain this week to come in at $1,061 per ounce.

For now, the white metals are playing catch-up to gold, and are certainly taking a backseat to the yellow metal, as its historic price move commands headlines.

Of course, gold’s spot quote in terms of U.S. dollars is largely a reflection of the currency’s steadily declining purchasing power. Plenty of other assets are also zooming to new nominal records, including stocks and cryptocurrencies.

The question for investors is which assets will hold value, or gain value, in real terms going forward.

The stock market tends to outpace inflation over the long run. However, buying an S&P 500 index fund at the wrong time could mean it will take years or even decades for buy-and-hold investors to see a real positive return on investment.

The period from 2000 to 2010 was a lost decade for equity investors. The S&P 500 failed to deliver a positive nominal return over those years – let alone gain enough to beat inflation. And the 1966 to1982 period was an extended lost decade as high inflation inflicted devastating real losses on Wall Street.

That same inflation that peaked in the late 1970s helped propel gold and silver into epic bull markets.

Few investors today own any bullion at all for inflation protection. Most are dangerously overexposed to stocks, bonds, and other Wall Street assets.

Even bullish equity analysts admit that stocks are looking overextended here and due for at least something of a correction.

Precious metals markets are nearly the opposite of overextended. They are vastly under-owned by the investing public.

In recent months, assets held by gold-tracking exchange-traded products have shrunk while retail bullion buying has slowed. Premiums have come down across the board in the process.

But gold’s breakout to new highs is likely to draw in new buyers who had previously sat on the sidelines and don’t want to miss out on the bull market. It will also trigger momentum trading algorithms in futures markets with buy signals.

Gold has risen thus far largely on the strength of demand from Asia and global central banks. China has added to its gold reserves for 16 consecutive months. The People's Bank of China gobbled up 390,000 troy ounces of the monetary metal last month alone. The Chinese central bank now holds more than 2,200 tons of gold and is showing no signs of slowing down on its purchases.

Central banks generally don’t accumulate silver or other metals as monetary reserves. That partially explains why gold has outperformed the white metals over the past few years.

While gold has traditionally served as the money of kings, silver has served as the money of the masses. It is far more practical to be used in circulating coinage. Silver dimes, quarters, half dollars, and dollars can be more readily deployed for everyday purchases than far more valuable gold coins of any size or denomination.

Silver bullion coins, rounds, and bars are also more accessible to investors with limited budgets.

Gold’s push to new highs should boost broader interest in the metals space. And once silver gets some buying momentum behind it, its spot price can move more rapidly than gold’s.

In a precious metals bull market, silver stands to ultimately gain much more than gold in percentage terms – both because silver is a tighter, more thinly traded, and naturally more volatile market, and because its price is currently deeply discounted versus gold.

Silver prices would have to double from here just to match gold’s feat of making a new high. From there, a silver bull market could accelerate to much higher highs.

Those who would like to seize the opportunity to invest heavily in physical silver while prices remain depressed have many options. Of course, it’s always a good idea to start with some coins, rounds, and bars in various sizes as an essential foundation and for potential use in barter transactions.

Beyond that, investors need not necessarily take home delivery of silver bullion products in cumbersomely large quantities. They can instead opt to own silver that is stored directly in a secure vault on their behalf.

Money Metals Depository is proud to offer the most convenient and cost-effective way to own physical bullion with the peace of mind that comes through advanced security systems and insurance through Lloyd’s of London.

We are super excited for this upcoming summer, when we move into our all-new Money Metals Depository facility. Having outgrown our current building and our existing vaults, the new Money Metals Depository is more than DOUBLE the size of Fort Knox and is the largest such facility – by far – in the western half of North America. You'll be hearing more about this in the future.

For more information on how you can store your gold and silver at Money Metals Depository, visit our website at or talk to one of our Specialists by calling 1-800-800-1865.

Well, that will do it for this week. Be sure to check back next Friday for our next Weekly Market Wrap Podcast. And don’t forget to tune in every Wednesday for the Money Metals Midweek Memo podcast as well. To listen to either podcast just go to or find them on whatever podcast platform you prefer.

Until then this has been Mike Gleason with Money Metals Exchange, thanks for listening and have a wonderful weekend everybody.

By Mike Gleason

Mike Gleason is President of Money Metals Exchange, the national precious metals company named 2015 "Dealer of the Year" in the United States by an independent global ratings group. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC, and his writings have appeared in hundreds of publications such as the Wall Street Journal, Detroit News, Washington Times, and National Review.

© 2024 Mike Gleason - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2022 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in