Is the sky the limit for gold?
2020 has all the earmarks of a massive breakout year for gold and silver. Gold prices passed a nine-year high this week as investors continue to place bets global stimulus measures will ease the economic impact of the coronavirus pandemic.
Spot gold was up 1.0% to $1,860.43/oz by 11:30 a.m. EDT, after reaching its highest since September 2011 earlier in the day at $1,864.90/oz. US gold futures were 1.3% higher at $1,867.40/oz in New York.
Gold bullion has surged nearly 22% this year and is now within $70 of an all-time high, bolstered by low interest rates and waves of government stimulus to revitalize virus-hit economies.
Not surprisingly, Sprott Inc., is incredibly bullish on gold. “Gold is a superior form of purchasing power protection and as real rates dive significantly below zero here, gold is relatively more attractive as a hedge,” Sprott Inc. CEO Peter Grosskopf told Bloomberg.
SILVER
Silver isn't being left behind. Spot silver jumped more than 8% Wednesday. The junior metal has been getting an added boost from supply concerns and optimism about a boost in industrial demand.
At more than $22/oz, the spot price has gained 14% in the past week and is near a seven-year high.
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