Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Will Gold & Silver Be Investment Outcasts in 2022 Again?

Commodities / Gold and Silver 2022 Jan 04, 2022 - 08:27 PM GMT

By: MoneyMetals

Commodities

For precious metals investors, 2021 will rank as a disappointing year – at least in terms of price performance. Gold and silver lagged behind the stock market as well as broad commodity indexes.

Gold showed signs of gathering upside momentum in the spring, but prices settled back down into a wide trading range for the rest of the year. The monetary metal is down about 3% for the year but will finish well off its lows.

Turning to silver, the white metal finished down over 9% for 2021.


Silver underperformed gold in the second half of the year as prices failed to reflect rising industrial demand. Mining output also recovered from the pandemic lows of 2020. But the Silver Institute forecasts a supply deficit for 2022.

At some point these bullish supply and demand dynamics will translate into some big upside price moves. In the meantime, silver represents a great bargain opportunity for value investors.

Platinum may also be a compelling value opportunity here. The platinum market is down about 10% for the year to trade at $974 an ounce as of this Thursday evening recording.

And finally, palladium suffered the biggest price drawdown of the year. After surging to a new all-time high – touching the $3,000 level in the spring – palladium closed Thursday at just under $2,000 per ounce, although well off the lows we saw in couple of weeks ago.

Despite inflation reaching a multi-decade high in 2021, metals were treated as outcasts by Wall Street. The S&P 500 hit new record after new record, diminishing gold’s safe haven appeal.

Stocks thrive on optimism. Gold tends to perk up on pessimism.

Mainstream investors apparently believe the narrative that the economy will continue to recover instead of entering into a period of stagflation.

But the so-called recovery is largely an illusion. Stagnation and inflation are the dominant economic realities for millions of Americans who aren’t partaking in Fed-fueled bull markets.

In addition to surging stocks, the housing market is up nearly 20% in 2021. That’s great news for homeowners. Terrible news for those trying to save up for a down payment.

Their costs of living are outpacing their earnings. But their economic misery isn’t fully reflected in the Consumer Price Index, which omits actual home prices and employs various other statistical gimmicks to understate inflation.

Even so, the CPI surged in 2021 to its hottest reading since 1982, coming in at 6.8%. Meanwhile, average hourly earnings increased 4.8% year over year. That represents a purchasing power loss of 2% when measured by the CPI – more when considering other measures of inflation.

If things were really so great for the economy, as the Wall Street cheerleaders on CNBC would have you believe, then President Joe Biden and the Democrats would be riding high in the polls. Instead, they are sinking as more Americans express displeasure with where the country is headed economically and otherwise.

Some of the most radical elements of the Biden agenda were thwarted in 2021.

For example, Joe Biden’s attempt to install a Marxist to oversee the banking system failed after moderates in the U.S. Senate objected. And for the same reason, his “Build Back Better” agenda is now being scaled down significantly.

But a tsunami of massive deficit spending is still coming down the pike in 2022 and beyond.

One aspect of the Biden agenda that will find broad bipartisan agreement is monetary policy. The Washington, D.C. establishment marches in near total lockstep when it comes to supporting central bankers in the efforts to suppress interest rates and buy up trillions of dollars in government bonds.

Federal Reserve Chairman Jerome Powell is likely to be confirmed for a second term. He has certainly delivered for his pals on Capitol Hill and Wall Street.

For ordinary Americans, Fed policies have contributed to rising costs of living. They are steadily destroying the value of savings parked in bank accounts or invested in bonds.

The erosion of the currency’s purchasing power isn’t transitory. It’s a permanent feature of our monetary system.

What is transitory are the inevitable dips in major bull markets. Yes, precious metals had a down year. But the centuries’ long track record of gold and silver in preserving purchasing power is unmatched by any other asset class.

Their record of price appreciation over the past two decades alone suggests that metals have the potential to bounce back and outperform in the years ahead – especially if stagflation becomes a dominant economic theme starting in 2022.

By Mike Gleason

MoneyMetals.com

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.

© 2022 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.


© 2005-2019 http://www.MarketOracle.co.uk - 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